Current state of CX in Banking
The present state of customer service in banking has been significantly impacted by the COVID-19 pandemic. With many physical branches closed and an increased reliance on digital channels, banks have had to adapt quickly to meet the changing needs of their customers.
The number of customers using mobile banking apps has increased by 25% since the pandemic began. With more customers turning to digital channels for banking, many banks have improved their online services. However, long wait times and difficulty in reaching customer service representatives remain a concern.
Banks have also implemented new features such as contactless payments, online account opening, virtual relationship manager to make banking more convenient for customers and implemented more chatbots and AI-powered virtual assistants to assist customers.
As the banking industry continues to digitalize, one of the major challenges is striking the right balance between technology and human interaction. Banks must seek to provide customers with the convenience and speed of digital services. And also maintain the personal touch to build trust and strong financial relationships.
Balancing Digitalization for Better Financial Relationships
While digitalization has brought many benefits to financial institutions, it also creates risks that need to be managed and mitigated. Financial institutions can use a balanced approach to digitalization that takes into account both the benefits and risks associated with it.
One important aspect of this topic is privacy protection which includes data protection and cybersecurity issues.
In addition, there are other challenges such as fraud prevention and cyberattacks that need to be addressed. This is important to maintain trust between banks and their customers when using digital channels such as online banking portals.
Hence, banks can use a balanced approach to digitalization that takes into account both the benefits and risks associated with it.
Future Trends for Customer Service in Banking in 2023
According to a recent survey, 77% of consumers say they would switch banks if their current provider does not provide a superior digital experience.
New technologies and competitors are emerging every day. And banks must adapt quickly or risk being left behind by the competition. To help you stay ahead of the curve, meet your customers’ needs, here are the top three trends we expect will dominate the banking industry over the next decade
- Personalizing Digital Interactions including Chatbot and Human Interactions
A great chatbot interaction can improve the way your customers see your brand 72% of the time.
In today’s fast-paced world, customers want banking services that are tailored to their unique needs and delivered at their convenience. This expectation has been amplified by the COVID-19 pandemic, which has accelerated the shift towards digital banking. To meet this demand, banks must provide digital experiences that are seamless and personalised across multiple devices and channels, such as mobile apps, social media, and chatbots.
One way to achieve this level of personalization is by leveraging artificial intelligence (AI). By using AI to personalise their digital experiences, banks can create a deeper level of engagement and build stronger relationships with their customers.
This will not only increase customer satisfaction but also boost customer retention and loyalty.
- Improving Products and Service Experience Through Big Data
Banks will have to continue to invest in improving products and services through big data analytics, as well as artificial intelligence (AI) & machine learning (ML). This will help them better understand customer needs and wants so they can provide more relevant solutions.
Big data analytics can help identify and build customer cohotrs who are likely to switch providers or leave the bank altogether and then provide tailored solutions that encourage them to stay put while also improving service quality for all customers.
- Adapting Customer Service in Real-Time
The banking industry is undergoing a significant shift towards real-time customer support as customers’ expectations for immediate responses continue to grow.
A recent survey found that 72% of customers expect a response within 5 minutes when they reach out to a business via chat, and 67% expect a similar response time via email.
This shift towards real-time customer support is pushing banks to invest in technology that allows for fast and efficient responses.
Creating a truly exceptional customer experience in the banking industry is not a one-man show. It’s a collaborative effort that requires the participation of all stakeholders. Banks, FinTech companies, government regulators, and industry associations must come together to create truly impactful customer experiences.
As with most products and services, the customer experience takes centre stage these days. An increasing number of people are shifting their spending to virtual entities, and banking is no exception. Banks might have started as physical institutions but are more often than not today just websites or apps. It will be very interesting to see how the trends mentioned above evolve in the coming years179