How to Reinvent Your Customer’s Banking Relationship

Blog Post By Ryan Rayner

Banking in Australia and the APAC region has changed, and for the better. Fintech, the Royal Commission, and controversy have shaken the core of financial institutions and what customers expect from them. In order to survive in this new world, organisations need to adapt.

Now more than ever, institutions are looking at CX leadership and tools to drive transformation that delivers differentiated, superior brand moments. Our latest e-book at TTEC, “Fintech and Banking CX Trends Watch” uncovers the organisations in the Asia-Pacific region that are taking the lead and redefining customer experience. Here are 5 key topics we pulled from the CX Trends Watch on how to connect with modern banking customers to build lasting customer relationships.

#1: Offer the right service at the right time

Today’s customers are always on the move, so why should we expect those in finance to be any different? According to research by McKinsey, digital bank engagement has risen as high as 97 percent in Japan, Australia, New Zealand, Singapore, South Korea, Hong Kong, and Taiwan.

And these on-the-go interactions are expected to be quick, efficient, and automated. The best financial service apps allow seamless transactions and a smooth user interface without switching channels.

A successful mobile app needs to be about the customer experience first. The app should have a minimalistic, clear, and intuitive design for convenience and ease of use whenever the user interacts. The user owns the experience.

#2: Remove unnecessary friction

Regulatory changes and new laws, such as those initiated through recommendations of the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry are reshaping the way financial institutions deal with privacy, data, communications and wealth. In some instances, these changes may not be easily understood, or it may affect customers in subtle ways they didn’t catch.

Organisations have an opportunity (and a responsibility) to guide customers through those changes and reduce unnecessary friction and customer effort as part of the value exchange. Make it easy for customers to understand how changes may affect their financial life through multiple channels. Use FAQs, AI-powered bots, and other tools to communicate with customers in the manner they prefer.

In the wake of the Royal Commission and a growing distrust for traditional banking, Scottish Pacific, a large provider for Australian SMBs, has partnered with ASBFEO to raise awareness among small business owners on the different forms of capital they could borrow to efficiently run their business.

#3: Treat your customer like an individual

Good brands are like good friends—they understand and value you, and aren’t afraid to let you know it. An organisation knowing as much as possible about individual customers is essential to providing better service. But are we actually providing a genuine relationship? According to J.D. Powers, as much as 77 percent of Australians reported that they did not receive financial advice from their bank on important transactions. There are opportunities to inform and strengthen bonds with customers.

Banks that create 360-degree assessments to track individual preferences, including how a customer responds to marketing messages and behaves at different points in the customer journey, are sure to win.

One Australian fintech company has created a lab concept with its userbase that invites customers to participate in surveys, express interest in events, and test products to build an experience based on their own preferences.

#4: Enhance the customer experience with emotion analytics

In the financial industry there is a need for empathy in an increasingly automated world. In fact, research from Deloitte shows that less than half of customers’ primary banks “wow” them with the quality of their product or service. To build customer empathy is to help build strong relationships. Some institutions are beginning to use emotion analytics to understand how customers are feeling about the brand and their interactions. They use this information to make proactive changes and expand what elicits positive emotion in individual customers.

Let customers know the company is listening and knows enough about them to offer relevant services at the right time. Provide employees with guidelines on how to connect with customers by looking at the intent of the request and alerting customers to a service they were unaware of that directly relates to the request.

#5: Build customer trust

Trust in a bank can be fleeting. Historically it has not been considered a trustworthy industry. According to J.D. Powers, 42 percent of Australians do not trust the major banks.

Fraud, data leaks, and theft in particular have become one of the largest concerns for financial institutions and their customers. That’s why more organisations are continuously upgrading their technology and fraud prevention techniques to improve customer trust, in addition to providing educational content on safe financial practices to go the extra mile for their customer’s security.

One solution is the growing use of cloud technology in the financial industry. For customers that have not switched over to cloud or those who may be hesitant, ensure that your organisation informs them of the security measures taken to keep their private information safe.

Create exceptional banking experiences

There is no magic button to create an amazing customer experience for your organisation. Customers are fickle, always on the move, and looking out for the next best thing. But what you can do today is understand that in our modern environment, a key solution to connecting with customers is a mix of human and digital to bring out the best in each interaction.

To learn more about how financial institutions are implementing these CX strategies, check out TTEC’s latest e-book, “Fintech and Banking CX Trends Watch