It’s no longer enough to simply offer a quality product or competitive rates. In the age of Open Banking, fintechs and the FANGs – such as Apple – are moving into the banking space have a number of advantages, whether that’s more agility, seemingly limitless funding, or higher brand awareness.
In tandem with a more competitive banking environment, customer expectations have been significantly raised. Consumers live their lives at the touch of a smartphone button, with the ability to book a gym session, buy a car, or order a Chinese banquet in seconds. They now expect the same convenience and frictionless customer journey when it comes to their financial interactions.
The data sharing driven by Open Banking allows your customers to browse and apply for financial products at any provider with ease. And if your customer buys a financial product from elsewhere, then your carefully cultivated relationship is at risk. A report by Webloyalty, titled ‘The Unfaithful Consumer’, found that 56% of people surveyed would switch their bank, while only 22% would change their regular restaurant, and only 20% would switch their favourite coffee shop.
So what does it take for a bank to keep its customers? In a nutshell, they’re looking for big tech level infrastructure and the user experience that results. Think in terms of an Amazon-style check out model – 100% digital Straight Through Processing (STP) technology.
This all begins with the onboarding experience. Customer onboarding should only take place once, the first time the customer approaches your bank to open an account, or apply for a credit card or other financial product. Customer should go down a one-to-many product application process, i.e. they apply once are able to access all relevant products.
Unfortunately, due to the siloed structure of most banks, data is not shared between the departments and customers become frustrated when they are asked to hand over data they have previously supplied. Redundant questions lead to customer frustration, which leads to customer abandonment.
When you’re reviewing your banking infrastructure, keep the below points in mind:
- One-time applications. Customers do not want to have to apply with their bank again for another product. The data they’ve already provided should be supplemented with third party data where possible to minimise or eradicate the data input requirements for customers wanting additional products.
- Digital first. Banks need to embrace the needs of modern customers by implementing digital capabilities across all channels and offering simple, value-oriented products to their customers.
- Superior customer journey. Banks need to offer simple and fast, 100% digital experiences.
- Multiple customer touch points. Banks must have the capabilities to connect with their customers on a multitude of channels and via the customer’s multiple devices, making sure their customers find them via aggregators, internet searches and social networks.
- Personalisation. Offering customers the right product, at the right time, results in customer loyalty.
- Loyalty programs. The ath Power Consumer Digital Banking Study found that 62% of those surveyed were interested in loyalty programs from their bank - for example, cash-back for credit card spending and discounts on borrowing rates.
- Corporate image. Make sure that you appeal. In a 2017 study by integrated retail experience strategy and design consultancy SLDNXT, researchers polled 1,100 US banking customers and discovered that over 57% of customers view their relationship with their bank as ‘transaction centric’. How can you change that?
ezbob’s Catalyst+ is a comprehensive digital lending solution with a proven track record at some of the world’s largest banks. Enhanced by the latest technologies in lending, this modular lending-as-a-Service (LaaS) solution offers your bank everything you need to launch a 100% digital, STP business and consumer lending platform.
Get in touch today to see how we can help you to transform your lending experience.
