Introduction

Today, customer experiences matter more than ever. Digitally enabled consumer preferences are giving the motto to transforming business models. In the financial services industry the explosion of new channels led to a need to shift from “product-centric” to “customer centric” strategies.

While customer relations have always been built on trust, they were historically done through one-on-one human interactions. For banks and insurance companies, the main challenge is how to replicate their previously earned trust and scale it across the emerging digital channels.

In an industry with new players, large and small, how do financial institutions keep up with the needs of their customers while still delivering trustworthy experiences that measure up?

Trend 1

Banking (r)evolution: from product-centric  to customer-centric industry

36% of consumers say the primary reason they think about switching banks is simply poor service, while 40% say they would stay loyal to their bank if they provided more personalized services. (Source: Adobe)

Banking has always revolved around product. But the evolving customer behaviors and expectations have required financial institutions to move away from just “selling products”.

While qualities such as trust and security are still financial services staples, simplicity and responsiveness have emerged as new values.

Improving the customer journey and providing a positive customer experience has become the number one trend as well as a strategic priority. You need to ask not what your customers can do for you, but what can you do for your customers.

Customers want to take control of their day-to-day banking and insurance services. They expect results as fast and easy as reaching  for their back pocket and as personalized as the traditional branch interactions.

 

Trend 2

Omnichannel banking experiences

Consumers' digital interactions with their banking provider (by segment). Source: Adapted from The Financial BrandOmnichannel is an approach to banking that seeks to provide customers with a seamless shopping experience, whether they’re shopping online from a website or mobile app, by phone, or in a brick-and-mortar store.

Financial companies have progressively developed customer focus by introducing digital tools. The strategy became to not just offer the best products, but also to provide a seamless, multichannel and customer-centric distribution approach.

Banking customers expect just that: that you know them every step of the way, and that all existing touchpoints - physical or virtual - should be connected. And while recent research by Adobe shows almost half of today’s consumers (46%) are already interacting with their bank exclusively through digital, there are still concerns about the security and privacy of their data across these platforms.

Trend 3

Data as the new currency

The worldwide revenue for big data and business analytics is expected to reach $260 billion by 2022. (Source: IDC)

It’s a fact that due to the nature of their business, banks and insurance companies have always had access to a large amount of customer data. With the explosion of digital channels, the quantity and quality of data has just become even bigger. 

Customers now feel a greater sense of empowerment and have higher expectations for their banking experience. They know data’s value and will reward the financial providers who offer high security and real value in return for it.

To keep that hard-earned trust through digital and increase customer loyalty, the shift to digital channels requires a new approach to omnichannel strategies, stitching the existing channels together and removing friction.

The benefits of big data in banking

360º business insights

Performance boost and reduced operating costs

Enhanced cybersecurity and reduced risks

  • from customer behavior to process efficiency and even trends across your target markets
  • streamline workflows with the help of machine learning and artificial intelligence
  • intelligent algorithms to detect fraud and prevent potentially malicious actions

Trend 4

Banking across cultures – where there’s a will there’s a way

The ability to segment your audience and individualize both your messaging and offering are the most effective personalization tactics for more than 50% of marketing influencers. (Source: Hubspot)

Some of the best opportunities come from the toughest challenges. A renowned example of this is McDonald’s Filet-O-fish – a product that was invented due to falling hamburger sales on Fridays. The Roman Catholic practice of abstaining from eating meat on Fridays led the company to look for alternative ways to retain those customers, guarantee consistent sales levels and improve reputation along the way.

So why should this principle be any different for the banking sector? Using customer data to offer customized advice and benefits tailored to your customers’ financial goals and needs is just one way to ensure customer satisfaction.

But a global customer experience in banking entails different countries, languages and cultures, where financial regulations may differ significantly. In order to achieve a competitive advantage, banking organizations must ensure their products are adapted to local market demands and that their marketing content is localized to meet customer expectations.

Trend 5

New regulatory demands, new challenges

45% of financial services companies are concerned with losing market share to new players, which includes the tech giants looming in the background. (Source: Adobe)

The evolving regulatory environment is slowing down innovation and increasing services time-to-market. The pressure is high to accelerate compliance adjustments and setup the overall management of the availability, usability, integrity and security of data and technology.

On one side, your customers expect interactions to feel personal and seamless. And while you want to offer that experience, it becomes challenging while managing strict industry regulations and security requirements.

On the other side, disintermediation in credit and payments such as crowd funding and new currencies, aggressive marketing approaches and newcomers from Telco, online banks and FinTechs have also emerged taking advantage of regulatory constraints.

Top regulatory challenges facing financial institutions

  • Democratization of information
  • Need for consent
  • Mandatory APIs to share data
  • GDPR rules on consent
  • GDPR rules on ambiguity of content
  • MIFID II
  • PSD2 & RTS
  • KYC Importance
  • Legal terminology in different languages

Trend 6

The game changers

With the emergence of non-traditional banking alternatives, there’s an increase of less conventional solutions to manage money. In turn, this has become a major concern to 45% of financial services, who fear the loss of market share to new players, including tech giants looming in the background.

For example, in the US, over half of millennials would consider banking, insurance and investment products from a company like Amazon or Google, traditionally not linked to the financial sector.

And while the rise of Bitcoin and Facebook’s Libra could be helping the masses become familiar with digital currencies, for century-old banking institutions, it’s just a new opportunity to reimagine themselves. Just as we’ve seen happen several times throughout the years.

Trend 7

Becoming more agile

Banks plan to invest heavily in updating legacy systems (44%) and implementing new technologies (26%), with artificial intelligence and machine learning expected to have the biggest customer impact (Source: Fraedom)

Market map: The disruptive forces in the financial industryAs you find yourself facing the need to serve your customers in more intelligent ways, across all channels, the question becomes how. The overhead of branches or legacy infrastructures has typically resulted in fragmented data across systems as well as a lack of in-house digital skills. A recent survey confirms that legacy systems are perceived as the biggest growth barrier by half (46%) of bankers.

Without data integration, you cannot have a true 360º customer view, but it also leads to insufficient focus on digital performance. How can you refine global campaigns and deliver high-value experiences if you have no real-time insight into customer behavior and engagement?

You can no longer delay to digitally transform how you operate and relate with your audiences - even if it means turning to digital partners such as Amplexor for data savvy talent, the right technology expertise and highly specialized content services, including financial translations in over 500 language combinations.

 

The way forward

Make your customers trust your bank:  omnichannel excellence from brick to click

Despite all the challenges, there’s hope.

Although branches and agencies still remain crucial contact points for direct customer engagement, financial organizations are already embracing digitization to fully achieve customer satisfaction - with the right IT investment and by actively listening to the market.

Customer experience management technologies powered by Adobe, Drupal or Kentico provide the unique ability to combine data analytics with marketing content management, especially when you combine them with all the connectivity hubs out there.

At Amplexor, we offer more than 30 out-of-the-box connectors to support your content lifecycle end-to-end: from creation, through localization, to migration, analytics and content intelligence. The best part of this? You’re fully empowered to build, manage and deliver experiences that truly fulfill your customers’ needs.

In turn, personalized experiences with the added convenience of mobile reflect the trusted relationship had in physical channels. In the end, happy customers throughout their journeys will naturally spread the word and recommend others to try out a provider or products. 

The recipe

The recipe to give your customers a personalized experience all the way

1. Become familiar with your customers

  • Use what you know about your customers (and don’t forget prospects) to deliver a complete experience based on their behavior, preferences, past transactions and context.

2. Offer compelling personalized experiences

3. Automate and optimize your customer journey

  • Leverage advanced analytics and translation connectors to better know your audience and provide helpful content automatically in their preferred language(s) and channels.

 

Banking Cx stats

75% Positive customer experiences influence 75% of customer decisions in banking.

5-15% Personalization at scale can grow revenue by 5 to 15%.

89% Strong omnichannel strategies result in an average of 89% customer retention rate.

131% Companies with a unified tech stack are 131% more likely to outperform their business goals.

 

In a nutshell

The YES YOU CAN generation wants what it wants and they want it now. Can you imagine having to go to a bank to transfer money or life without online shopping? Do you even remember what your credit card looks like? We are rapidly getting used to having the whole world in our hands, literally.

Figuring out ‘where to innovate’ and ‘how to be a friend your customers can bank upon’ should be the way to navigate your digital transformation journey.

Luckily, you’re in touch with Amplexor – we’ve been successfully driving digital transformation across the banking and insurance sector, overcoming the challenges of legacy technology and outdated processes. Through customer-centric strategies, we help financial services companies like yours meet rising multicultural customer expectations and deliver all-round experiences that resonate with their audiences in today’s globalized, digital and fast-paced world.

How we can help

Amplexor banking & financial solutions

A global one-stop shop for content services

  • Consulting
  • Customer experience
  • Content experience
  • Content management
  • Enterprise collaboration
  • Financial translations

 

LET’S TALK!

Find out how we can help you create a customer-centric banking experience.

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Table of Contents

Customer Experience in the Financial Sector

Digital Transformation Playbook 2020

How are banks and insurance companies keeping up with evolving customer expectations and technology trends?

  • Product-centric vs customer-centric
  • Scaling across digital channels
  • New forms of currency
  • Cross-culture banking
  • Becoming agile
  • ...and more!

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