In a recent report, Forrester described why customer experience in the banking industry is incredibly important, possibly even more so than in other industries.
“For years, we have watched power shift from companies to customers. In the age of the customer, customers can and do transfer their loyalty when they don’t receive the engaging customer experience (CX) they expect. This shift has affected all industries, but banking — with its lack of physical products — faces a greater impact than most: It is much easier to switch to a new bank account or get a more favorable mortgage than to get rid of your suddenly unlovable diesel car. In this environment, banks must continue on the path to digital transformation. If they fail to keep improving their customer experience, they risk losing customers to banks and financial technology (fintech) firms that do.”
In the last few years, financial institutions have been making significant strides in improving the customer experience through a variety of digital transformation initiatives. Yet, companies realize there’s still a lot more work to be done.
During BMO Financial’s Q3 2017 earnings call, CEO Bill Downe shared how the company continues to watch “digital interactions” reshape the organization.
“We’re proactive in our response to changes in the marketplace and growing demand for digital interactions as we meaningfully transform the business,” Mr. Downe said. “Percentage of everyday transactions that are banker-assisted now hovers at just 15% with mobile, critical sales and service channel rapidly overtaking online. Our focus is on delivering an experience that seamlessly blends the digital and personal dimensions of our offering with greater personalization across all channels, integrating human and digital advised based interaction.”
While much of its business has shifted to mobile and online channels, BMO realizes the need to connect both online and offline channels to produce the best possible customer experience. The organization’s experiment with smart branches and use of biometrics are two examples of how it’s trying to strengthen relationships with customers.
Other organizations, such as Wells Fargo, Bank of America, and Citi, are also continuing to test newer personalization strategies and Internet of Things (IoT) technology. Citi’s trial with proximity beacons that provide access to branch ATMs via a smartphone is just one example.
According to a research report from BI Intelligence, organizations are going to spend approximately $5 trillion on IoT in the next five years. To see additional examples of IoT in financial services, download our new guide on The Why, What, and How of IoT.