Would you be surprised to know that poor customer service can make customers switch banks? Certainly not! That’s because customer service is one of the most important aspects of banking.
Let’s put it this way, a majority of customers may not consider customer service when selecting a bank but poor customer service can make them switch to a different bank or financial institution.
A study conducted by customer experience research company Temkin revealed that seven out of every ten respondents leave their bank citing poor service rather than poor products. As per data released by Marketing Tech News, international banks are losing 20 percent of their customers due to poor customer service.
But what’s surprising is the findings of this study. A study by Mobiquity revealed that seven out of every ten customers under the age of 55 would switch their bank if they get a superior customer experience from elsewhere.
Customer service is the next frontier in banking and financial services. To stay in the race, banks and financial institutions must leverage sophisticated communication tools such as contact center software for banking and finance.
This blog post discusses how the right contact center software can benefit banks and financial institutions. Read on and thank us later.
1. By providing omnichannel support
When customers wanted any service in the past (say ordering a checkbook), they would have to visit their bank’s nearest branch to avail of the service. But now, they can do that from the comfort of their home. Not only can they request the service by calling a toll-free number, but do the same using live chats, instant messaging apps, and even social media platforms. Over the last few years, omnichannel banking has gained popularity by leaps and bounds. Providing an omnichannel customer experience has become more crucial for banks and financial institutions than any other organizations in other industries.
As per a study by Capgemini, over three-quarters of customers expect an omnichannel experience and six out of every ten of them would like on-demand customer service. Another study by renowned financial services research and advocacy organization BAI found that customers expect 61 percent of banking services to be digital by 2024. A Forrester research revealed that four out of every ten customers want customer service representatives to know relevant information about them as well as their previous transactions and queries.
To paraphrase BMO Financial Group’s Chief Digital Officer Brett Pitts, millions of customers interact with banks and financial institutions using mobile and they expect to cross channels easily. The right contact center software would integrate various communication channels on a unified platform and enable customer service representatives to handle all text messages, instant messages, web chats, social media notifications, and more in a single place. By using sophisticated contact center software, agents can handle two or more customers’ messages simultaneously without changing tabs.
2. By enhancing First Contact Resolution (FCR)
More often than not, customers contact their banks or financial companies when they want to resolve a serious issue or when they have an urgent query. In such cases, they would like customer service representatives to listen to them attentively and provide them with the right solution or answer as soon as possible. Failing to do that won’t just frustrate customers, but can compel them to stop transactions and switch to another bank.
For banks and financial institutions, FCR is one of the top Key Performance Indicators (KPIs). Less-than-average FCR not only lowers customer satisfaction but also increases call handling charges. Even though the average FCR rate for the banking and financial services industry is 71 percent, banks, and financial organizations should aim for a higher FCR rate. As per SQM, an FCR rate of over 80 percent is regarded as ‘world-class.’ A study conducted by SQM provided the following insights:
- Every percent improvement in FCR reduces operating costs by one percent.
- Every percent improvement in FCR increases customer satisfaction by one percent.
- For every resolution of a call, an organization witnesses a 20 percent increase in cross-selling acceptance rate.
- For every one percent increase in FCR, the transactional Net Promoter Score increases by 1.4 points.
Loaded with cutting-edge features such as intelligent call routing, automated self-service options, agent training resources, and call whispering, the right contact center software can enable customer service representatives to resolve customers’ problems and queries immediately, thereby increasing FCR.
3. By providing customized and tailored customer service
Best-selling author and noted public speaker Brett King best described customization in the banking and finance industry with this quote—“Banking has to work when and where you need it. The best advice and the best financial service happen in real-time based on customer behavior.” When customer service representatives study customer data and previous transactions, then they are better equipped to provide tailored customer service.
In the last few years, customization has gained a strategic value in the banking and financial services industry. A study by London-headquartered management consulting company Capco found that seven out of every ten customers rate customization as ‘highly important’ in the contemporary financial services landscape. Another research by J.D. Power revealed that more than three-fourths of customers would continue their transactions with a bank or financial organization if they received customized customer service.
Equipped with several advanced features, the right contact center software can enable banks and financial institutions to provide tailored and customized customer experiences. For instance, the multi-level IVR will enable customers to select their preferred language and the department they want to speak to. The skill-based routing will route their calls to the agent with the right skill and experience to speak with them. The CRM integration feature will enable the agent to take a look at relevant customer information and transaction history to provide the right service to them.
4. By ensuring data security and compliance
“Social security, bank account, and credit card numbers aren’t just data. In the wrong hands, they can wipe out someone’s life savings, wreck their credit, and cause financial ruin.” This quote from Former United States Representative Melissa Bean stresses why banks and financial companies need to prioritize data security and compliance.
For lenders and financial institutions, cyber threats are a major concern. As per the Sixth Annual Bank Survey by the Conference of State Bank Supervisors, seven out of every ten banks and financial institutions ranked cyber security as the top concern. The data released by VMware Carbon Black revealed attacks targeted at the financial sector surged by 238 percent between February and April 2020. The cost of cyber attacks in the banking and financial services industry touched USD18.3 million yearly per company.
Needless to say, banks and financial institutions need to provide customers with the highest degree of privacy and data security. For that, they must leverage top-notch technology tools such as sophisticated contact center software to protect their customers’ information from hackers and cybercriminals. High-quality contact center software that’s compliant with certified public cloud environments, can be extremely useful in providing customers with just that.
5. By streamlining banking processes
Another famous quote from Brett King is “At 2030, I would say that you probably have two billion people that’ll be using day-to-day banking services, independent of banks.” However, the scenario won’t happen seven years from now but sooner than that. All thanks to rapid automation and streamlining of banking processes.
As per data released by International Data Corporation, the banking and financial industry would be one of the top sectors to spend the most on automation by 2024. And when banks and financial institutions use automated tools such as AI-powered contact center software, then they can easily streamline the majority of their daily activities and processes.
Sophisticated and high-quality contact center software enables customer service representatives to streamline banking processes such as accounting reconciliations, customer data updates, KYC validations, disbursing loans, payment reminders, customer relationships, and overdraft protection. This streamlined approach eliminates the need for customers to repeat information when switching between channels, which leads to a more satisfying and efficient interaction.
All said and done,
In an age when almost all banks and financial institutions provide more or less the same interest rates, investment, wealth management, and several other services, customer service is a major differentiator. It can make or break the success of a bank or financial institution.
That’s why banks and financial institutions must leverage the right communication tools (such as sophisticated contact center software). By doing that they will not only enhance their customer service but also ensure robust data security, provide omnichannel support, and streamline their processes.