In my previous post, 4 Essentials of a Stellar Customer Experience for Banks, I elaborated on how customer experience is the fulcrum around which digital transformation has to happen. Multiple product improvements augmented with myriad channels present a unique challenge for banks – what to invest in and how to cut through the chaos to ensure maximum returns. In this blog, we will look at the three key considerations that will help banks create a robust roadmap for customer experiences over the next few years, through product and channel innovation.
Fundamentally, at the very core of this conundrum is a balance across three basic needs (both from an end user and bank perspective):
Let’s now look at some use cases to meet those needs by leveraging product and channel innovation:
Very simply put – there are two ways that an institution can play the cost game. Either reduce the cost of the service, or increase the value being delivered and the customer is willing to pay a little more for the extra service offering. Cost reduction can be achieved through economies of scale – make more customers use the service or improve operational efficiencies. However, with Fintech disrupters upping the ante, it makes more sense to go with the second strategy – create and offer a niche service, or even better make the product contextual and personalized – seemingly made to order. It’s not as hard as it sounds, more so with so much of data available about customer preferences. Some use cases that might spark the next round of banking innovations:
Make the time spent with an individual customer relevant and meaningful, while providing “in the moment” service
The outcome might be a negotiated rate per service consumption that might be less than the standard service cost
Leo Tolstoy famously said “The two most powerful warriors are patience and time”. While this might still be true in corporate boardrooms, from the standpoint of a financial partner neither is expected. The corporate world works seamlessly 24/7/365 across time zones and borders now. FIs are looking at shortening the decision making process for product acceptance by making them available faster and in real time. This leads to quicker conversion and reduced risk of uncertainty of service / product rejection or replacement.
How about an idea that makes the home buying process more engaging (this is probably one of the long drawn decision making processes in the customer life cycle)
Images where customers can get a view out of the window, picture themselves on the living room couch – this goes a long way in helping customers make the home-buying decision.
This is the icing on the cake. Opening up additional revenue streams while delighting the customer with impeccable service offerings. The good news is that there is a bunch of useful and proven technologies now that can help realize 1 and 2 above with ease. Some examples that might provoke a discussion:
This is how a combination of strategy and technology can help the FI continuously innovate its product and channel portfolio.
In my next blog, we will look at the BaaP of all things Digital – Bank as a Platform