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8 Ways to Improve Digital Customer Experience in Banking

  • Bhumika Dutta
  • Dec 01, 2021
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Today's generation has entirely digitalized their life and is completely reliant on digital methods to fulfill their daily duties. 


Everything from books to food, finance, and banking is now done digitally via mobile phones or computers. 


When it comes to finances, digital banking is a very cost-effective way for customers to get basic services, but how do banks connect with their digital customers? We will find out in this article. 



Instigating a Digitally Connected Customer Experience In Banking:


The adoption of digital enablement technologies that can function together smoothly is required to orchestrate a connected customer experience. Here are eight options for banks to achieve this:


  1. Improved Core Banking and Branch Automation Integration


Core banking services have been critical to the banking industry's expansion during the last decade. Many banks, on the other hand, have yet to catch up in terms of integrating robust services across locations. 


For example, a customer who visits a branch in New York for a certain operation should be able to have her request fulfilled when she visits the bank's Florida location. 


The customer's information should be stored in a centralized system that bank employees can access whenever and wherever they are needed.


Aside from core banking, branch automation services such as quick customer onboarding, faster payment cycles, and automated data transfer across departments can all help to boost operational efficiency. 


As a result, banks should think about investing in a single digitalization (or digitization) and automation platform that can streamline complex IT operations while providing improved connected consumer experiences.



  1. Services for Digital Banking


According to a recent survey by Statista, digital banking is favored by 7 out of 10 individuals in the UK and over 161 million people in the US due to its convenience. This has become even more important during the present pandemic. 


Customers can complete their banking transactions with a few clicks on their laptops or mobile devices while sitting in the comfort of their own homes.


The graph above illustrates the need for banks to pursue a bold digital transformation plan. This strategy should emphasize data-driven personalization that can be delivered to customers across all digital channels and devices. 


Customer expectations for digital banking services have skyrocketed, thus the sooner this is done, the better.


(Suggested Blog: Ethical Banking)



  1. Analytics of Big Data


In comparison to any other industry, the banking and financial services industry is heavily data-driven. Purchases, fund transfers, user requests, and inquiries are all created on a second-by-second basis via the website, mobile app, call center, and so on. 


Banks must invest in cutting-edge Big Data technologies that can assist them in assimilating and making sense of massive amounts of data.


A cutting-edge Big Data analytics and reporting platform can assist banks in effectively managing complicated data. It allows them to see users in a more basic light when it comes to the data they generate with the bank. 


A platform like this can aid in the integration of user data that is dispersed across multiple silos and systems. Analyzing the system's reports can aid in better understanding customer needs, allowing for a more tailored experience at the moment of interaction with the bank.



  1. 24 x 7 Customer service


When clients have a non-supportive or non-responsive experience from their bank, they frequently go to social media to air their frustrations. 


This could be due to a delay in responding to their inquiries, inaction from the bank's support system despite multiple client requests, or a poor customer service system.


A connected client experience is complete when the bank provides the greatest possible round-the-clock customer care. 


Any customer or prospect queries received via touchpoints such as live chat, call center, email, and so on should be responded to within a certain timeframe.


When customers receive outstanding service, a bank becomes more trustworthy in their view. If done in real-time, it generates a huge positive perception among clients, who, in turn, generate positive word-of-mouth publicity that boosts the bank's brand image.


A connected customer experience is achieved when a bank provides a succession of really important encounters both online and offline, such that the consumer never feels abandoned or lost in transit. This might happen before or after the consumer is onboarded, when the bank/enterprise is processing their demands. 


This is more easily accomplished through internet methods than through conventional channels. Banks can intentionally build a connected customer experience that can accelerate consumers along the purchase funnel, one step at a time and contextually, using online channels like email, SMS, website, chatbots, contact center, and so on.



  1. Improved financial management through proactive engagement


Financial institutions have been able to broaden their means of engaging clients, developing better relationships through real-time help, thanks to innovations in data gathering, data analytics, and channel strategies.


Instead of relying on location-based offers, banks and financial service providers will be able to deliver useful insights, allowing clients to take advantage of possibilities faster than ever before while limiting their risks.


How can banks benefit from proactive client engagement?


  • Educate clients: By providing proper customer education, banks can better educate their customers about products and services, allowing them to make smarter financial decisions.

  • Notify customers: To keep their consumers informed about their transactions, banks might send out notifications about bills, application progress, and announcements.

  • Survey: Customer feedback can be proactively collected by banks to discover and understand the gaps between clients and banks.



  1. Employ a "Financial Advisor" with chatbots


A chatbot is the greatest channel for banks to employ to automate simple and routine processes when human participation is not required (such as knowing account balances, outstanding credit card amounts, and how to move addresses). 


You can train your bots to conduct interactions in a way that is appropriate for their linguistic style and at a time that is convenient for them. Bots minimize the number of support requests and increase team efficiency when utilized correctly.


Here are a few examples of possible bank chatbot applications:


  • Customers nowadays demand speedier service and accessibility 24 hours a day, seven days a week. Chatbots for financial services can provide immediate answers to simple questions and engage customers at all hours of the day and night.

  • Chatbots in banking allow people who prefer self-service to converse with their bank as a human, even when asking for information.

  • In-app chatbots can access user account information and deliver highly tailored information, assistance, and even financial advice based on the data.


Nina, a Swedbank AI assistant, is meant to provide an intuitive, automated experience across all of your digital channels by engaging your consumers in natural voice or text dialogues. Nina bot, according to the bank, resolves 81 percent of the 40,000 discussions she handles each month.



  1. Using a tailored customer experience strategy


Individualization is critical. It all comes down to providing value to customers. For banks to provide individualized service, they must first understand their customers' demands.


To provide banking services and financial advice to their consumers in the most convenient way, banks will have to employ both physical and virtual channels. They need to use a hybrid approach that is both cost-effective and improves the banking experience.


The impact of tailored services is depicted in the graphic below. Here are some guidelines for banks to follow when providing customized services:



  • Put your clients first


In the banking industry, customer service is paramount. It's critical to give customers what they want rather than the other way around. 


Collecting client feedback and acting on it is critical. Banks can customize services for their consumers by employing the correct tools and software.


  • Leverage customer data


Banks are expected to make efforts to acquire and leverage customer data to better understand the needs and preferences of their customers. This would make it easier to connect with the relevant clients and provide better solutions.


  • Deliver a multi-channel customer experience


Because clients conduct their banking over a variety of channels, banks must likewise leverage numerous channels while providing tailored services. 


Banks must customize engagement across several channels, including phones, emails, video chat, and messaging applications, in addition to their branches. 


Additionally, the client experience given across these channels must be consistent and seamless. Banks and financial institutions should invest in cutting-edge IT systems to achieve this.



  1. Direct Mail Communications


Printed direct mail, as well as its digital complement–personalized URLs and analytics–help you stay in touch with clients between monthly statement deliveries, just as well-designed print and electronic statements can boost customer engagement and marketing success. 


These tools can be used for both onboarding and ongoing marketing initiatives. The response rate can be used to determine the overall success of a strategy.


Email newsletters and digital communications, which might include personal URLs to track customer involvement, are examples of related marketing choices. 


You may also send out Net Promoter Score (NPS) surveys regularly to improve engagement and get a fast overview of how your customers feel about your business.


(Recommended reading: Introduction to Investment Banking)





Customer-centricity has risen to the top of the priority list for banks and financial, and economical institutions. Consumers have gained more control over the types of products, services, and experiences they expect from their banking institutions as they grow more digitally sophisticated.


It's past time for banks to move away from antiquated systems and toward digital-first innovative solutions that will make them more nimble and futuristic through branchless banking and automation. 


These tools can assist banks in assessing client demands and behaviors, providing personalized linked experiences that add value, and establishing long-term partnerships.

Latest Comments

  • jamesdaniel7306

    Mar 15, 2022

    Bhumika, this is a very good writeup on eight ways to improve the digital customer experience in banking. Due to the pandemic, the digital mode of payment has emerged in the last two years. The world has seen a spike in digital payment transactions. Payments are now faster, frictionless, contactless, embedded, and transparent. Currently, the digital payment innovations are available to smart phone users who have internet connections only. If these features were available on feature phones also, it would increase the number of digital transactions manifold. Here is an insightful article on the trends in the digital payments sector to look out for in 2022: https://bit.ly/3iaLRyE

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