Banks are falling short on important aspects of the customer experience and are increasingly vulnerable to competition from new banking providers, according to the 2014 Global Consumer Banking Survey compiled by Ernst & Young. According to the survey: 52% of consumers have opened or closed at least one banking product in the past year and 40% plan to do so in the next 12 months Of the 60% of respondents not planning to close or move their accounts, it is not necessarily because they are confident that they are with the right provider: 22% of those who plan to maintain their current relationships feel all companies are the same 17% indicated it is just too difficult or time consuming to change The survey identified three key improvement areas for banks that could positively impact the customer experience:
Make banking simple and clear.
Consumers are constantly flooded with information and struggle to understand choices, charges and changes. To make banking easy for consumers, banks should be transparent and concise around fees, rates, services and other communications. People depend on web, mobile, social media, telephone and in-person channels, so banks should offer an omnichannel experience that combines both traditional and digital banking.To stay competitive, financial institutions need to continue building channel capabilities to provide seamless 24/7, real-time access to banking.
Help people make the right financial decisions. Many consumers want help developing their financial plans and goals.
The banks that provide that advice are likely to grow their businesses. More than 70% of respondents say they would increase business with their provider if advisory services improved. Banks have the opportunity to create a mutual exchange of value by personalizing the experience, based on a holistic perspective of the customer’s unique situation and needs. Banks can augment this experience by leveraging both internal and external resources. This could include a skilled network of financial advisors, data about what similar consumers have spent and personal financial management tools that help people save, invest and spend more wisely.
Be proactive in anticipating and solving problems.
Effective problem solving is vital to any bank-customer relationship. Problems are inevitable, but survey data shows that there is astounding upside if people are satisfied with their problem resolution versus a downward spiral in trust and business if dissatisfied. Making it easy for customers to raise issues, equipping the front line to handle certain problems and escalate others, explaining why the issue occurred and following up to ensure resolution is complete are crucial to successfully handling problems.
Written By Jim Tiernery
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