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For many years, banks have benefited from having a loyal customer base that's hesitant and discouraged to change providers. The onset of open banking means banks must allow third-party organisations (like app developers) access to account details. It puts customers' needs at the forefront as open banking can provide services like budgeting and savings advice tailored to the specific customer. Customers will, however, find it easier to switch providers — especially as new entrants can leverage the insights provided by a customer’s transaction data to create new solutions for currently uncovered and unmet needs.
For incumbent banks, this means rethinking their current engagement model to attract and retain customers, alongside reinvigorating their current offerings. Recently, we have observed several banks employing strategies to improve their customer experience (CX). They recognised the growing evidence around human-centered design practices has the power to drive bottom-line value. Many institutions have started interacting with their customers across new digital channels. However, banks are still struggling to meet demand and serve customers at a time when customers need their help the most.
Research into financial services, carried out by Forbes, has shown a correlation between improved customer experience and positive bottom-line results. But, with the COVID-19 pandemic, many banks have had to pivot their focus away from CX-led design to managing major service disruptions that have left customers hanging.
Three outcomes stand out where improved CX can deliver a balance of customer satisfaction and cost:
Understanding where to start can be daunting and create inertia that results in unrealised potential never being attained. In Datacom’s experience, starting from an informed place, through a body of research, allows an experience map with target state experiences to be developed and visualised. Next, considering the organisational change needs of your organisation, findings are broken down to logical horizons to deliver the experience roadmap. Finally, service strategy is never static and in that light, we recommend working with the business to iterate and optimise the service experience based on customer feedback.
James Johnstone is Datacom’s head of commercial strategy for our Connect business. He is passionate about combining his experience in IT and customer service to advise on how to improve the service experience for our client’s customers.