3 Ways Banks Can Transform The Client Experience And Ensure They Do Not Lose Market Share

We live in an information age where advances such as self-driving cars and 3D printed buildings are no longer science fiction. Technology is changing all aspects of our lives.

Technological changes are making institutional staples such as taxis, hotels and high street outlets more dispensable. Favoured instead are the likes of Uber, Airbnb and Amazon; new entrants armed with digital technologies and a fresh industry outlook. Few industries exist where the threat of digital disruption does not exist and banking is no exception.

Banks are not immune to digital disruption as made real by the pressure to innovate in order to stay competitive. It’s either change or risk losing clients to competitors – not just other banks but also more agile startups.

Here are 3 ways banks can transform client experience to ensure they do not lose market share.

1) Use advanced analytics to gain better insights into client behaviours

Astonishingly, 90% of the world's data today has been created in the last two years. As the amount of data continues to grow exponentially, learning how to interpret and analyze this data will be crucial for banks.

Banks hold a significant, yet largely unutilized advantage. This being the vast range and volume of customer data they have, from consumer spending habits to employment and pay information.

For example, banks should be able to tell if a client has just had a child based on the data from their spending habits and from this the wealth management division should be able to offer relevant related products like healthcare and insurance to cross-sell.

However, the reality is most of this data is stored in silos across departments, preventing these types of integrated offers and cross-selling opportunities.

2) ’Tailor made’ client experience

Banks must transform themselves to be relevant for the next banking consumer generation and start utilizing the vast volume of client data to deliver a highly personalized physical and digital experience.

Like other apps, banking apps also face the challenge of maintaining ongoing engagement. It is imperative that banks do not embrace a ‘one size fits all’ approach.

Banks can create a ‘tailor made’ client experience by combining predictive analytics with multiple digital touchpoints to increase app usage and brand awareness. As customer behaviour evolves banks can use this data to adapt how, where and when they approach and engage clients. They will be able to determine more accurately when an automated solution should be used to engage a client or if a human advisor might be more appropriate. As adoption of digital solutions continues to grow, opportunities to capture data and provide a hyper-personalized client experience will also increase.

3) Listen to your client

Disruptions continue in the industry, with consumers being afforded more options such as self-advising through comparison websites.. Banks must build truly digital models that focus on the client and give them a meaningful and valuable experience. It will no longer be acceptable to group clients into sub groups based on simple demographics and individualized customer interaction. It will need to be considered by listening to client needs and behaviours.

Understanding the entire client journey requires building a digital roadmap that starts with customer brand relationship and includes other factors such as industry trends and client behaviour. As the the range of services available through digital channels increase, banks will need to consider that the journey will begin long before the client even steps into the branch - if ever.

To conclude, as clients have increasing financial management and product choices, brand loyalty will become less relevant. The concept of a ‘bank for life’ will no longer exist as it will become easier to open a new account with a competitor. Going forward, one thing is for certain, customer procurement and retention battle success will occur on data lines and technological adoption will be key to staying ahead.

Neel Shingadia

Director, Business Development

Neel's LinkedIn Profile

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