The 3-Part Formula for Greater Banking CX
5 mins read

The 3-Part Formula for Greater Banking CX

After a tumultuous 2023, it is no surprise that banks are focusing more on growing deposits. According to BAI Banking Outlook: 2024 Trends ReportThis is their number one business priority.

However, without an excellent customer experience (CX), it is challenging to attract new customers, let alone retain them. And only 11% of banks say they work on that front.

This reality just doesn't threaten banks' increased investment this year. This risks driving away existing customers. Consider the digital banking experience: 40% of customers will switch financial institutions for better digital capabilities.

Banks need a concrete strategy to improve their CX to increase deposits. Whether you're looking to win commercial or retail customers, I'll walk you through a three-part formula that any bank can use to create an experience customers will love.

1. Understand the data you have and the data you need

Great banking CX starts with gathering data on customers' needs and frustrations at every stage of their banking relationship. More specifically, this means you need customer data.

  • onboarding experience: How much guidance do you provide to commercial banking customers after the first 90 days with your bank? Do you frequently ask questions about a specific product or service (like your payroll software)? These factors indicate whether you are effectively engaging customers or not.
  • adoption of digital services: How often do customers use your mobile app and website? What services do they use most: Mobile check deposit? Autosave? Your treasury management tools?
  • Potential Cross-Selling Opportunities: For example, are there specific triggers (a new life stage, an increase in deposits, etc.) that indicate the customer might use a new credit line or high-yield savings account?
  • core loyalty driver: Why do your loyal customers stay connected to your bank? What are the top reasons customers leave?

The good news is that you may already have much of this data – for example, if you have an onboarding checklist or customer support interaction captures.

However, in many banks, this data remains in silos. For example, your brokerage branch may have information on high net worth clients. However, the credit card team may not have access, so they can't use that information to personalize credit card offers.

So, you need more than just the right data. You need to integrate that data so that customer information reaches every team. This will result in a more holistic picture of customer needs.

2. Use customer data to personalize the banking experience

This step seems intuitive. But I can't tell you how many times I've filled out a bank questionnaire – such as after transferring money to a different financial institution – with zero action or follow-up from the bank.

That experience is very common. Although many banks successfully collect CX data, they often do not use it to tailor products, offers and services to customers' expressed needs.

For example, let's say your data shows that commercial customers regularly have questions about your cash flow management software. In that case, you can create a guided onboarding workflow with educational tooltips to go deeper.

And if a retail customer has thousands stashed away in their savings account, consider sending them information about a CD so they can get a higher interest rate. If you don't do this, they may find it at another bank and transfer your money there.

Most of the work here will require technology that lets you create a cohesive customer profile and manage the customer experience across every channel. A digital experience platform (DXP) can do this well.

Think of DXP as a collection of tools to collect, learn from, and react to customer data across your digital platforms. A DXP often includes multiple pieces of API-connected software (a content management system (CMS), customer relationship manager (CRM), customer data profile (CDP), personalization engine, predictive analytics tools, etc.) that create a unified customer Are- Facing the experience.

Mix and match your DXP components to create a stack that best suits your customers' needs. If you want to do more with your customer data, DXP ​​is a powerful way to personalize and upgrade your CX without a full-system rip and replacement.

3. Continue to pay attention to customers' evolving needs

Even with the best CX data, customer needs are constantly changing. Customer demands today may differ from those five to ten years from now.

For example, look at payment space. A few years ago, customers were satisfied with a bank associated with PayPal or Venmo. Now, whether consumers or business owners, many want the ability to make fast payments directly from their bank app (for example, through Zelle integration or FedNow).

The bottom line is that you should avoid collecting CX data for specific, short-term purposes. Invest in a digital infrastructure that will help you understand customer needs so you can continue to provide a competitive banking experience.

Don't let your CX investment disappoint

This year, CX investments will lag deposit growth and customer acquisition. But the truth is that a great CX opens the door to both of those possibilities. It is the duty of bank leaders to keep CX front and center – the ultimate goal is an experience that inspires customers to engage and stay with your financial institution.

David Ritter is Director, Financial Services Strategy at CI&T,

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