“Delivering a strong customer experience is a critical requirement for banks and building societies.Although such changes may seem daunting, one thing is certain – doing nothing is not an option,” says Hamilton.
The findings
Young demographics were the most dissatisfied, with 78% of Gen Y and 83% of Gen Z experiencing frustration when dealing with the digital banking experience.
The report reveals that banks are lagging in customer experience, with architectures currently prioritising systems-oriented design and platforms built around the limitations and procedures of the bank rather than the needs of the customer. They are also sitting on poor customer reputation statistics, outdated hardware and an expensive legacy of branches and staff.
Banks still have a long way to go to meet the needs of their loyal customers.
Leading the change
“Digital transformation cannot be led by an IT team alone – it is a cultural shift in an organisation, a new way of thinking and doing and it must start from the very top of the business. As our survey showed frustration with digital experiences in banking is widespread. Change therefore must be led with key objectives based on the customers’ benefits, not software features,” says Garry Hamilton, group chief growth officer at Equator.
The big tech brands
The research also explores the rise of big tech and how brands like of Apple, Amazon, Facebook, Google, PayPal and Uber are encroaching on the turf of well-established banking brands through the launch of new products, such as the Apple credit card.
Staying in front
The report suggests banks should invest in four key areas of digital transformation to deliver on customer needs: improving functionality for better digital CX, connecting services and products for a deeper relationship, processing automation for more efficient and faster processing, and adopting AI for next best actions and personalisation.
Conclusion
“Delivering a strong customer experience is a critical requirement for banks and building societies.Although such changes may seem daunting, one thing is certain – doing nothing is not an option,” says Hamilton.
This article has been published in Transform Magazine, April 2021 and The Fintech Times, May 2021.