As the financial industry undergoes a major transition known as the ‘Great Banking Transition,’ conventional banks find themselves in unfamiliar territory. With increased regulatory scrutiny, digital advancements, and competition from new financial companies, the key to riding this disruptive wave is to get the customer experience (CX) right. Customer happiness emerges as the key for success in the middle of this upheaval.
The Customer Experience’s Influence on Financial Evolution
CX has been at the forefront of industry conversations for many years. With the financial landscape continuously changing, new elements are driving CX trips. According to McKinsey, client happiness in banking is strongly related to financial performance. In this day and age of waning loyalty, satisfied clients are six times more likely to stick with a company.
The Difficulty of Exceeding Customer Expectations
Customers demand more than simply transactions in an age dominated by companies like Amazon and Uber. Banking has evolved into a seamless experience that recognizes and responds to individual requirements. However, the unbundling of financial services has rendered traditional banks less important in the daily lives of people. The advent of Superapps that provide a variety of services on a single platform poses a risk to banks, as they risk losing critical transactional data required for customization.
Digital Banking Realities: Challenges in the Face of Rapid Transformation
While banks have embraced digitization, the fact is that they are still struggling to perfect customer experience. Even in the greatest markets for account opening, only approximately 66% of first-time tries are successful. The gap between client expectations and delivered experiences remains, prompting concerns about where banks may be doing wrong in their digital initiatives.
Dismantling Siloes for Seamless Experiences
Organizational silos that fragment customer journeys are the Achilles heel in creating outstanding CX. Banks struggle to create uniform and intuitive experiences due to their fragmented strategy and old systems. The integration of new technologies frequently exacerbates existing silos, resulting in a tangled web of old and new systems that impedes the delivery of value from digital activities.
The Platform-First Approach to Digital Success
Banks must take a platform-first approach to succeed in the digital arena. The emphasis should move from individual innovations to a single platform that integrates components smoothly, improving the overall efficiency of the financial ecosystem. DBS Bank’s success story, which revolves around an AI-powered platform, stands out as an example of rethinking the whole banking industry. A platform strategy not only optimizes the return of digital investments, but also lays the groundwork for designing digital journeys that consumers not only require, but also enjoy.