Retail banks provide financial products, namely, credit, deposit, and money management for individuals and families. In recent times, alternatives to traditional banking are placing banks under a harsh spotlight, particularly those that continue to operate using outdated practices and services.

An integral part of many banks’ successes (or failures) is their relationships with their customers, and these relationships are the ones most affected. Unlike their fintech-focused counterparts, retail banks regularly interact with customers.

The idea here is not to alarm but to remind retail bankers and executives, of the crucial factors that can provide a significant edge over competitors. This ‘deep dive’ into the customer experience will highlight that the findings will somehow point to the customer and their impact– whether through direct or indirect means.

Read on to learn how your retail bank can win with customers in 2023 to ensure that you remain top of mind and maintain leverage over the competition.

Listen to the customer.

A one size fits all approach is not appropriate for banking, as the needs and preferences of customers vary. These are based on age, income level, stage of life and even cultural factors. Although the bank is not expected to customise services based on every individual’s unique needs, retrieving insights is a smart way to confirm that the ‘majority rules’ in a particular area.

For instance, in 2023, transactions and services must be compatible for use on mobile phones. This would mean that a bank must have a mobile and web app readily accessible at each customer’s convenience.

The key to unlocking this knowledge includes data collection capabilities to retrieve insight into preferences and significant updates on life changes through digital customer update forms. Sentiment analysis is also critical at the entry/exit points in-branch to gauge branch experience. The takeaway is – always ‘keep an eye and ear out’ to know what customers say about your services and processes.

Investing in the brand

The image of a bank is important to its customer. As interest rates and other fees surge, customers always look for deals and promotions. In fact, a study by Accenture (2020) found that 30% of customers had switched retail banks in the last 12 months because of competitive pricing, excellent customer service, or better value. A bank that considers these factors can gain a win with customers, mainly because they make attempts to give back to their loyal customers with a variety and personalised offers. This perception can improve ratings, keeping the bank top of mind, even during those times when a promotion or deal is unavailable.

Secondly, with improvements in technology come concerns about cyber-security. Coupled with the current high rates across many countries, customers desire to know and feel assured that their funds and transactions are secured. Frequent hacks or disruptions to a system will impact customer relationships, as this might suggest a fragile security system.

On the digital side, consider additional banking app features, such as the option to freeze/block transactions if a credit or debit card gets lost or stolen or automatically generated receipts to confirm payments and other transfers.

Response rate and time are also crucial factors for a bank’s brand. The time it takes to react to a query or complaint is a ‘dealbreaker’ for many customers and can signal to a customer their perceived level of importance. Retail banks must prioritise customers by upgrading their experience with a consistent and reliable communication style. This should be the standard to communicate an accessible, firm, and trustworthy brand.

Technology talks but doesn’t decide everything.

We can all agree that digital is here to stay and continues to disrupt many businesses and their workflows. Studies have shown that the new generation of banking customers prefer online services; however, an in-branch experience is not entirely obsolete. Customers still prefer an omnichannel experience, particularly for areas requiring longer, real-time conversations, such as mortgages and investments.

Both the physical and online aspects of banking should blend effortlessly and operate as a complement to each other. For instance, customers can have the option to sign up for an appointment online to speak with a representative in-branch at a specific time. By providing key details beforehand, the recipient in the branch can generate all the necessary answers, making the conversation progressive and the experience smooth.

Consider if your online channels are accessible across devices, responsive and have high-demand features such as:

• AI chatbot technology
• Live customer service representatives
• Self-service security tools to block transactions or freeze cards.
• Notification system to alert customers of transactions.

How is the in-branch experience?

• What is the average wait time to get a service done?
• What is the waiting system for service? Is it a ticketing/appointment system or standing in line? The former might be more appealing.
• How much can a customer get done before actually coming into the branch? Is detailed and up-to-date information available online to ensure that customers are aware of a checklist of documents?

Focus on building community, not numbers.

Focus on customer value, and the numbers will fall into place. Customer retention happens when their needs and preferences are met, and all promises are delivered. Today, the tolerance for lagging, unresponsive services is relatively low. Customers require being seen and heard in a way that communicates that their business is valuable. Build trust with a highly transparent system and a bank that considers customers’ needs. Make the customer the focal point of everyday business and watch your ratings and profits grow.

 

It takes much more effort to appeal to today’s customers; however, with the multitude of information available, it is realistic to maintain a bank that flourishes by establishing a relationship with its customers. At Phoenix International, we start with the customer and create a unique strategy for THEIR needs and preferences. If the journey to winning in 2023 and beyond seems overwhelming, consider a technology partner to help you figure out the right tools for your bank.

We are a digital transformation partner providing core banking and value-added solutions, enabling financial institutions to scale quickly, sustainably, and affordably while satisfying increased regulatory requirements. Visit phoenixinternational.io to learn more about how we can help you to improve the customer experience and win in banking.