In Brief
- Enhancing Customer Experience: Banks should adopt a customer-centric strategy, train customer service representatives to understand customer needs, and equip them with tools like CRM systems and chatbots to provide efficient service.
- Creating Value Via Customer Segmentation: With a robust data management infrastructure, banks can utilize data analytics for better personalization of services and targeted marketing campaigns, aligning offerings with customer preferences.
- Developing Digital Talent: By promoting a digital-first mindset and focusing on hiring and training digital-savvy employees, banks can build dedicated digital teams to drive digital transformation, ensuring they stay competitive in the evolving digital landscape.
The banking industry is facing an unprecedented level of disruption as digital technologies continue to reshape the way customers interact with financial institutions. Banks are recognizing the need to adapt and evolve in order to remain competitive and meet the changing expectations of their customers. In this article, we will explore how banks can enhance customer experience, create value through customer segmentation, and develop digital talent in order to stay ahead of the curve.
Enhancing the Customer Experience
To restructure customer support teams to be customer-focused, banks should start by creating a customer-centric strategy that clearly defines the goals and objectives of the customer service team. This strategy should be aligned with the overall business strategy of the bank and should take into account the bank’s target customers and their needs.
Next, banks should train their customer service representatives to think like customers and to have a deep understanding of their needs and preferences. This can be achieved through regular training and development programs that focus on customer service skills, such as empathy, active listening, and problem-solving. Additionally, Customer service representatives should be provided with the necessary information about customers and their interactions with the bank, so that they can make informed decisions and tailor their service to each customer’s needs.
93% of organizations consider customer experience as a significant competitive differentiator, whether as a primary or partial one.
Source: Statista
To provide the best customer experience possible, customer service teams should also be equipped with the right tools and processes. This includes providing them with a CRM system that allows them to track customer interactions, as well as providing them with access to real-time data and analytics that can help them to identify patterns and trends in customer behavior. Banks can also invest in chatbots and virtual assistants that can automate routine customer service tasks, and provide customers with quick and efficient service.
Furthermore, Banks should also establish clear and efficient communication channels between the customer service team and other teams within the bank, to ensure that customer complaints and feedback are addressed quickly and effectively. This helps to ensure that customer service teams are able to provide the best customer experience possible, and to build trust and loyalty with customers.
Creating Value Via Customer Segmentation
To invest in data-driven decision-making and customer segmentation, banks should first establish a robust data management infrastructure. This includes investing in data warehousing, data governance, and data analytics tools that can help to collect, store, and analyze customer data. Clear data policies and procedures that ensure that customer data is collected, stored, and used are essential for regulatory compliance.
Once the data management infrastructure is in place, data analytics can be used to identify trends and patterns for better personalization of services and targeted marketing campaigns.
A survey conducted by London-based technology firm Yobota in 2021, found that 74% of banks and financial institutions are prioritizing the improvement of their core technology systems, 73% have plans to invest in advanced data analytics, 67% plan to invest in Application Programming Interfaces (APIs) and 65% in payment technologies. The survey was conducted among 250 senior decision-makers.
Developing Digital Talent
A culture of digital transformation can be achieved by promoting a digital-first mindset, and by providing employees with the resources and support they need to embrace digital technologies and processes.
To develop digital talent, banks should focus on hiring and training digital-savvy employees who have the skills and experience needed to navigate the digital landscape. This includes recruiting employees with skills in areas such as data analytics, digital marketing, and software development. Banks should also invest in training and development programs that help existing employees to acquire digital skills and knowledge.
Moreover, to adapt their organizational structures, banks should establish dedicated digital teams and structures that are responsible for driving digital transformation within the bank. This includes creating a chief digital officer position, and setting up digital hubs or innovation labs. These teams and structures should be given the autonomy and resources they need to experiment and test new ideas, and to bring them to market quickly.
For example, ING bank has established a number of initiatives to attract and develop digital talent, such as their International Talent Program and the Digital Talent Hub. This program offers courses, mentoring and networking events aimed at developing digital professionals and fostering a culture of innovation.
Conclusion
The banking industry is undergoing a digital revolution, and those that are able to adapt and innovate will be the ones that thrive. By focusing on enhancing customer experience, creating value through customer segmentation and developing digital talent, banks can position themselves for success in the digital age. Banks that can anticipate and respond to the changing needs of their customers, and build a team of digital experts, will be well-positioned to take on the challenges of the digital landscape and emerge as leaders in the digital banking space.
References:
https://www.ing.jobs/global/careers/international-talent-programme.htm
https://www.insiderintelligence.com/insights/digital-banking-trends/
https://www.siegemedia.com/strategy/fintech-statistics
https://www.mordorintelligence.com/industry-reports/big-data-in-banking-industry
https://www.adb.org/news/digital-skills-critical-jobs-asia-and-pacific-says-adb-linkedin-report
https://global.hitachi-solutions.com/blog/banking-customer-experience-trends/
