In Customer Acquisition and Retention, Customer Experience

Banks face challenges from all sides. Customers expect seamless, secure, frictionless experiences. Fraudsters try to compromise accounts and siphon assets. Regulations and compliance requirements eat up capital, time and human resources. Fintechs are clamoring for new customers, threatening retention and traditional lines of business.

While those external factors do put pressure on banks, one of the least acknowledged threats comes from within the bank itself. Silos of business, legacy systems and legacy attitudes come into conflict, hurting the customer experience and preventing growth.

Silos: Good for Grain, Bad for Banks

How do silos have such a negative impact? First, they are technically inefficient. Many of the individual systems used by distinct lines of business are not built to communicate with other systems in the FI. This disconnected structure prevents the organization from mining important customer insights, resulting in the fragmented, generic experiences that turn customers away.

Silos are also politically isolated and prevent a holistic view of both the financial institution (FI) and the customer. While one LOB has a view of a single customer facet, another LOB may have complementary data that remains unseen in a siloed environment. Without that additional information, LOBs may fail to present the best offer at the best time.

Leading FIs understand that smashing those silos can lead to new ways of understanding and engaging with customers. With a complete view, FIs can more thoroughly understand the individual and deliver the superior experiences modern financial consumers expect.

Connect for Success

Recent research from the Temkin group shows potential revenue growth for FIs at 27.5% in just three years when organizations improve their customer experience.[i] With moderate increases in customer experience measures, companies can start to improve loyalty and wallet share.

The real question is: how do FIs deliver the improvements in customer experience? The answer is to implement a comprehensive decisioning layer. An API connected and data agnostic layer can connect data from multiple sources (both internal and external), centralize credit and fraud risk policies, implement business rules and provide real-time adjustments to accommodate regulatory and market changes.

By taking an enterprise-wide view of customer data that is LOB agnostic, banks can share information across individual channels. No longer will the LOB live in a data desert – each line will have the complete view of customer history and behavior. This centralized approach can enable lines to understand the unique needs of each customer, resulting in more efficient and effective customer touchpoints.

Adopting an enterprise decisioning model allows for greater transparency and documentation, and helps automate risk control while providing full auditability.  Not only do customers get the benefit of a bank that has the full picture of their relationship – banks also an effective solution to risk management and compliance.

Give Customers What They Want

Financial customers are not just making a product decision when they evaluate an organization. They are making a relationship decision. Organizations that can demonstrate they understand who the individuals are and what they need will end up with the new business.  By offering personalized, tailored products and services, FIs can foster trust, increase wallet share and drive loyalty.

Customers expect banks to understand their needs whether they are in a branch, on a website, or using a mobile banking app. They expect the individual LOBs to know about the entirety of their relationship with the bank as well. When an FI has an enterprise decisioning layer in place, they can confidently engage with the customer regardless of channel.

Digital engagement gives FIs an opportunity to learn more about individual customers and capture those learnings in a central system. When a customer visits a branch and the teller brings up a product that the individual was reviewing on the website, that experience is likely to build rapport and loyalty.

Banks that differentiate on customer experience, and specifically experience informed from a central, enterprise decisioning layer, will be those that are most successful in the future. Want to read more about making customer experience your main value proposition? Check out this blog post. 

Want to learn how to apply an enterprise decisioning layer in your organization? Contact Zoot today.


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