Written by: Terry Kuester, Vice President, Financial Services Consulting
Customer demands are changing faster than financial providers can manage. The pandemic and shift to remote work prompted customers to accelerate their migration to digital channels and rely on digital-first experiences to make remote banking fast, secure, and painless. As a result, traditional financial providers failing to modernize — while continuing to use legacy systems and outdated processes virtually guarantee losing customers, revenue, and reputation. Financial institutions must accelerate digital efforts and reconfigure priorities to deliver the experiences that today’s customers expect.
What’s stopping providers from delivering better customer experiences?
NTT DATA and Oxford Economics fielded a survey to 100 North American business and IT executives from the banking, wealth management, and capital market sectors. This study found that two-thirds of financial services executives feel customer needs are changing too rapidly to deliver positive experiences, which is likely why just 39% indicated above-average customer satisfaction.
Respondents identified customer satisfaction as a primary driving force of organizational strategy. They believe product and service quality (50%), digital experiences (45%), and flexible services (42%) are the most important factors to provide value to customers.
What makes a positive customer experience?
According to research, “…nearly 80% of American consumers say that speed, convenience, knowledgeable help, and friendly service are the most important elements of a positive customer experience.” We believe four key pillars can meet these primary needs and deliver a positive digitized banking experience.
- Data Security and Privacy — Data concerns are top-of-mind. The pandemic increased risks for organizations across industries. Account takeovers, data breaches, and financial crimes are rising, and customers want to feel secure with their banks before providing loyalty. In addition, financial services providers must protect customer information, abide by privacy regulations, and mitigate risks, while leveraging accessible insights to improve customer experiences.
- Accessibility — Accessibility is an essential component of a positive user experience. Accessibility impacts customer retention, and even a 5% increase in retention rates can increase profits up to 95%. Not only will an accessible website improve customer service, but it can help you reach a wider audience, build positive public relations, improve market penetration, and help grow your business.
- Instantaneous Assistance — Many digital-first banks are implementing AI chatbots that answer customer queries in seconds and escalate to an agent when necessary. According to the FinTech Times, customer service is the single most significant factor likely to increase spending on banking. Moreover, 32% of all customers would stop doing business with a brand they loved after one bad experience. Live 24/7 support for website visitors enables quick resolutions and better customer experiences.
- Personalized Services — New technologies allow financial service institutions to gather customer insights — beyond a siloed view — to build a 360-degree customer view capable of delivering personalized experiences while maintaining privacy and security. Personalization is a differentiator that contributes to higher engagement, enhanced customer experience, and a more substantial ROI. Organizations can invest in data collection, data mining, AI/ML, data scientists, and technology consulting services to deploy tailored customer journeys for their unique users.
Evolve alongside customer expectations
Customers want high-quality customer service, security and fraud protection, and mobile and online access. They also want banks to be socially responsible, support and advise them through financial hardships, and contribute to the community in meaningful ways. We believe that banks of the future will be purpose-led organizations that position the customer at the center of their business decisions.
Visit our website to learn more about our research study, “Innovation Index: Digital Strategies for an Era of Constant Disruption”.
About NTT DATA Services
NTT DATA – part of the NTT Group – is a trusted global innovator of IT and business services, headquartered in Tokyo. We help clients transform through consulting, industry solutions, IT modernization and managed services. NTT DATA enables clients to move confidently into the digital future. We are committed to our clients’ long-term success and combine global reach with local expertise to operate in over 50 countries. Visit us at nttdata.com