Customer Experience in Banking: Top Trends to Drive Growth
In a nutshell 🥥 Customer experience is the single most powerful growth lever for banks and credit unions. Here, we cover what banking customer experience really means, why simplicity is the secret ingredient, and how financial institutions can improve it across four key areas: streamlining the branch experience, connecting online and offline services, providing the right mix of services, and communicating clearly. Make sure to include self-service appointment booking, video banking, omnichannel communication, biometric authentication, peer-to-peer payments, and financial literacy tools, all designed to put customers and members in the driver’s seat. There are seemingly infinite strategies for financial institutions to drive growth in the modern age of banking. For example, a better marketing strategy, a wider range of financial products, and a more streamlined approach to staff scheduling can all go a long way to helping a bank or credit union grow. But if you’re looking for the single most impactful way to drive growth in banking, it’s time to prioritize the customer experience. According to a recent survey of 1,700 consumers , 92% say quality customer service is the most important factor when determining where to open a bank account. Another 63% of consumers say they’re not likely to switch away from a bank that offers great customer service, and 78% say they’ll return for similar services. It’s hard to overemphasize the importance of customer experience in banking. Financial institutions that optimize customer experience grow faster, have higher NPS scores, and have better retention rates than banks that don’t put the same emphasis on customer experience. So how can your bank or credit union provide the absolute best banking experience to your customers and members? And what does customer experience in banking mean, exactly? In this post, we’re exploring how to improve customer experience in banking. We’re also delivering the top customer experience trends to drive growth and help you beat out the competition. What Is Customer Experience in Banking? So, what is banking customer experience? Ultimately, it’s the way members and customers feel about your financial institution. No matter how much effort you’re putting into the customer experience, it all comes down to your client’s perception. If your clients don’t have a great opinion of you, then you’ve missed the mark and won’t see the growth you’re seeking. Customer experience encompasses every interaction a client has with your financial institution, from simple daily activities to one-on-one meetings. Each one of these interactions has an impact on their opinion about your bank or credit union. Some of the most common customer experience touchpoints include: Paying a bill online Using an ATM Withdrawing money Meeting with an advisor Opening a bank account Visiting an FIs website Standing in line at a branch Meeting via video conferencing Talking to an advisor over the phone All of these touchpoints matter. If customers and members repeatedly have positive interactions with your bank or credit union, they’ll develop loyalty to your institution and continue to be a customer. If they have ongoing negative interactions with your institution, they’ll develop a poor perception of your bank or credit union, and find another institution to bank with. What Makes the Best Banking Experience? So what makes a great banking experience? And how can a bank’s customer experience be improved? Is AI taking over banking technology? For concrete answers, let’s turn to the data. We’ve studied many customer experience reports to reveal one common thread: it’s all about keeping things simple. That’s right. Sometimes, less is more, and adding more services and more technology isn’t necessarily going to improve a customer’s perception of your financial institution. You’ve probably experienced this phenomenon yourself — if a brand changes its offerings or requires you to use complicated technology to maintain your services, you may just find yourself frustrated and ready to ditch the brand altogether. On the other hand, an organization that provides simple, intuitive customer experiences is more likely to keep you around for the long run. So how can you keep it simple, while still improving the customer experience in banking? Let’s walk through some of the key trends and examples. Streamline Your Branch Experience One of the first steps to building a better customer experience is to streamline your branch experience. To accomplish this, it’s important to look at both the little things (How are customers greeted when they come in? Where do they get in line? Do they know how long the line will be?) and the bigger picture (Do you offer a fast lane? Are your advisors efficient and friendly?) Here are four ways to streamline the customer experience at your bank or credit union: 1. Make Your Branch Feel More Welcoming Your customers and members come to your branch because they have a need. Maybe they’re opening a new account, applying for a mortgage, or simply coming to withdraw cash. In any case, it’s in your best interest to make the experience as welcoming as possible. All the little details matter here, down to the lighting and the temperature in the room. Even if it’s in their subconscious, customers will note how they feel when they’re in your branch. If they feel comfortable, calm, and welcomed, they’ll be more likely to return. And if they feel uneasy, irritated, or unwelcomed, they’ll be quick to move to another bank that offers a better in-branch experience. You can make your branch feel more welcoming by allowing clients to sign in on their own via a tablet kiosk, providing wait times, and making physical changes, such as: Adding ambient lighting Shifting the floor transitions Installing colored carpeting to guide visitors Removing stanchions Removing bulletproof glass Removing the counter altogether Adding “flex desks” and call booths All of these simple changes can go a long way to make the branch more comfortable for your customers and members. 2. Allow Your Clients to Book Their Own Appointments When you want to improve the customer experience, you need to put your clients in the driver’s seat more