3 CX successes and 3 CX failures of the financial sector


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Financial services companies spend a significant portion of their budget on customer experience. According to a Microsoft Dynamics 365 survey of insurers, banks, and other financial services companies, 86% attribute 25% or more of their overall budget to customer experience, while nearly half (45%) attribute 50% or more. Of the 46% of companies in the study who expect their organization’s CX budgets to increase somewhat or significantly over the next year, 59% will invest in leveraging customer data for one-time personalization. real at the branch level.

Despite the financial commitment, many argue that the actual results are only average. With that in mind, here are three successes and three failures of 2021.

3 Financial Services CX Success Stories

1. Access to financial education: Union Bank offers clients and prospects access to its “Financial University”, which includes a comprehensive suite of financial articles, coaching sessions and financial calculators. “We are able to not only share great tips for them [customer] think about; we also increase their financial literacy,” said Dian Franks, Chief Marketing Officer. “We feel it’s important for us to also be there for our communities. When our community is financially stable, then the community thrives. We want to help someone through maybe a tough time or a tough decision, ultimately that’s what we want to be remembered for – not our free checking accounts.

2. Automated Loan Originations: Today, customers can apply for mortgages, personal loans, and credit cards without ever meeting a loan officer. Financial documents can be downloaded and signed electronically. According to Derek Corcoran, chief strategy officer at Numerated, many analog financial processes such as paperwork and branch visits have traditionally been used to process business loans. This equated to a poor customer experience and, at worst, a loss of business for the banks. “Over the past five years, and especially over the past 18 months, these banks have been forced to adapt,” Corcoran said. “Today, hundreds of banks are offering business loan and account creation processes that are digital-first, which has dramatically improved the customer experience for borrowers.”

Corcoran pointed to Eastern Bank, which offers fully automated end-to-end loan originations. This means that a borrower does not need to speak with a banker unless that person wants to – there are no pre-branch visits or other unnecessary steps.

3. Mobile payments: Consumers have become more receptive to mobile payments, with 65% of respondents saying they would use a mobile app to pay a bill, according to research from Broadridge. The study also revealed that almost a third (32%) of consumers have made an online bill payment in the past year and 22% have created an online account.

The report pointed out that 40 million of the 66 million customers of Bank of America, one of the nation’s largest banks, now use digital channels. A quarter of these new digital customers are baby boomers. “We’re seeing a particular push in the financial services industry to win customers with design thinking that benefits the customer first – like Rocket Mortgage and Apple Card,” said Matt Swain, chief executive of Broadridge. “Each of these offerings challenged industry standards, Rocket Mortgage with its streamlining of the loan approval process and Apple Card with its first digital card experience to support its Apple Wallet strategy.”

Related article: Finserv: 2 tips to balance fraud and customer experience

3 Financial Services CX Failures

1. Omnichannel experiences: Although financial services companies have succeeded in moving many interactions to digital channels, they still fail to deliver good omnichannel CX. A recent study by Next Caller found that just over a third (34%) of consumers say their experiences when calling their bank are “simply okay”, while a further 14% say it’s “slow and frustrating”. Additionally, more than 30% of consumers surveyed say they would switch banks after just 1-2 bad customer service experiences. Forty percent of consumers surveyed said customer experience was an influential factor in choosing their financial institution.

According to the study, millennials were even more frustrated with financial institution CX. Millennials were almost twice as likely (41%) as Gen Xers (23%) and Baby Boomers (24%) to say a “better digital/mobile experience” influenced them when choosing their banks .

According to Next Caller, financial institutions that provide an exceptional customer service experience offer the following:

  • Personalized calling experiences
  • Respond quickly to customer expectations

2. Inadequate self-service: The self-service capabilities offered by many financial institutions do not effectively resolve customer or member inquiries, said Sidra Berman, chief marketing officer of Engageware. For example, an institution may offer self-service digital technology, such as a chatbot, but not use it in a way that guides a consumer through all the steps necessary to find a solution without the need for human interaction. . This can be the result of inconsistent information, difficulty locating needed information, and conflicting responses from different channels. “To truly improve the digital customer experience, banks and credit unions need to focus on tactics that optimize self-service channels and look at their customer self-service through the eyes of the consumer,” Berman said.

3. Leaking front, rear ends: Financial services have invested heavily in building digital capabilities and continue to make significant efforts to operationalize their digital initiatives through automation and the creation of digital front ends, said Ashish Deshmukh, Head of Banking and Financial Services at Newgen. Software. But the front-ends – the mobile, web and social interfaces are decoupled from the back-end.

“They’re adding multiple touchpoints and apps that don’t talk to each other, resulting in interrupted customer experiences,” Deshmukh said. “Additionally, some banks are going digital by adding multiple systems for different products such as loans and deposits. Although both channels are digital, the customer experience is broken and inconsistent when they want to opt for both products. “Additionally, cross-selling becomes difficult with siled apps targeting different products. Banks should aim for a single unified platform to provide a consistent and unified experience for their customers.”


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