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In the banking industry, trust and reliability are paramount. Exceptional customer service in banking is not just a support function but a key differentiator. Whether it’s resolving issues, guiding customers through complex financial processes, or simply offering a friendly voice during a stressful situation. The quality of customer service can greatly influence a client’s perception of a bank.
Banking customers want their financial institutions to provide more than just basic service – they want insights, guidance, and relevant recommendations.
A study by Accenture shows that 48% of bank customers demand preferential treatment and rewards in exchange for their loyalty to your bank.
In this article, let’s explore the importance of customer service in banking, challenges, strategies, examples, and more.
High-quality customer service is crucial in the bank. Will you go to a bank where your waiting time is long and you must be listened to properly? Not. That is why it quality customer service is a top priority to build reputation and promote word-of-mouth through existing customers.
But, does it mean good customer service in banking? It includes providing prompt, efficient, and personalized assistance through multiple channels, including in-person, online, mobile apps, and phone banking. And, the key elements include 24/7 support, user-friendly technology, knowledgeable and courteous staff, and continuous employee training.
Do you know prompt and efficient service will develop good public relations, reduce complaints, and increase business? For banks, excellent customer service is pivotal because it makes customers feel valued, helps you meet their needs more effectively, and improves customer retention in banking.
Financial institutions have amongst the highest customer acquisition costs in the industry today. Acquiring new customers can cost five times more than retaining existing ones. Hence, it is essential to adopt the right strategies to improve customer service in banking.
Customer service means different things in different industries, but it always boils down to the same basic element – providing superior levels of service to your customers.
Offering the desired customer service to a customer is a big challenge in the bank. Let’s find the most common challenges bank faces that impact the overall customer experience:
Today’s customers expect personal, relevant, accessible-anywhere experiences when they interact with businesses — and modern finance is no exception. With new post-pandemic norms setting in, digital-first service keeps customers connected to your offerings anywhere they need them.
Let us dive in to understand how each strategy can deliver exceptional customer experience in banking.
Mapping out your customer journeys is crucial to deliver the exact service that customers are expecting.
First things first! You have to identify all touchpoints across all channels where you engage with customers. A common banking customer journey may include:
You should have feedback experiences in place at all three touchpoints. Then by identifying target customers, create customer personas and focus on your customer experience program.
Secondly, outline the journey for how customers engage with your institution. Start your journey map with the first point of contact and each next step and all potential steps until the journey is complete.
Finally, identify at-risk customers and proactively engage on a personal level to improve the relationship.
Note: If financial institutions can learn to identify at-risk customers, proactively engage on a personal level, and identify what is causing the customer’s behavior, companies have a much higher chance of keeping a customer loyal, maybe even for life.
The goal is to use experience management to move from reactive to predictive, and eventually, to a state of delivering exceptional experiences across all touchpoints.
People want to organize their finances on the go and find answers quickly online and the best option is live chat.
Citibank reported that 90% of live chat users complete their home-equity application.
Live chat is a powerful tool to counter the bureaucratic and impersonal feel of banking institutions. It provides your customers with personal human support that’s easy to reach.
American Airlines Federal Credit Union recognized the advantages of live chat and empowered their service reps to engage customers in real-time. The biggest German institutions like Hypovereinsbank and Targobank also use live chat as their main customer service tool.
Personalized experience in any industry always pays off well. In the banking sector video chat is a wonderful tool that can have a positive impact on various aspects.
Video chat in customer service for banks has witnessed a whopping 70% growth. Its value even grows further when used in combination with other tools for customer engagement.
When situations are complex where visual cues hold huge importance, a video chat platform emerges as the only option to ensure the best personal support.
AI in banking customer service is gradually gaining wide acceptance. They are not only simplifying the processes for businesses but also enabling quick access to services that were formerly confined to apps.
Banks need to improve the quality of their customer service without sacrificing time to redundant user queries.
Subsequently, banks now understand the importance of automation and 24×7 services that are not only convenient to them but to their customers. It means seamlessly providing scalable 24×7 customer support on multiple channels and languages.
AI Chatbots in banking customer service can help streamline transactions like money transfers and account balance checks via a conversational interface so that customers are constantly guided through their actions
Nowadays, basic transactions in banks are speedily migrating from the physical to the digital channels. According to Reuters, 60% of customers would still prefer to open a new checking account at a bank branch rather than through digital channels
A majority of banks have adopted the omnichannel approach at the core of their strategies.
It’s because banks have understood that ease, innovation, simplicity, and accessibility of platforms provided by FinTech companies can influence customer behaviors quite strongly.
An omnichannel customer service strategy allows you to use all available marketing channels to achieve an integrated and seamless customer experience.
The customer, on the other hand, can move from your app to the website to push notifications to social media, experiencing the same branding and messaging throughout in a synchronized way.
Note: However, banks should amalgamate traditional and digital components in order to create an omnichannel customer experience.
Financial matters are very critical to handle, so having frontline employees with exceptional interpersonal skills is an asset for any financial institution.
For example – There might be circumstances where you may find yourself in situations where you need to explain to a customer why their loan application has been denied or why a mortgage cannot be processed.
While it is important to be clear and transparent in explaining the options, one must display empathy and maintain the utmost composure. It will certainly go a long way in helping customers feel reassured.
So banks and financial service providers must invest in customer service training for employees to have them ready to navigate all possible scenarios.
At times it may appear like these are additional costs that impact the bank’s bottom line, but at the same time will be made good by clients who stick with you because of good customer service.
As banks face new and evolving challenges, including digitization, virtualization of the workplace, government regulations, and growing security concerns, they can gain a competitive advantage with knowledge management.
74% of customers report that they use a self-service support portal to resolve issues on their own before contacting a live service representative.
Creating a knowledge base in the banking sector allows financial services organizations to more efficiently store and organize knowledge, which enables bank managers and employees to collaborate and stay aligned on short- and long-term initiatives.
Customers are the ones who can anticipate their needs better than anybody else.
After all, your customer data from your CRM and helpdesk tool can only tell you a part of the story. The other part lies with the customer. And no form of technology can magically help you read it.
It only makes sense to dive into this rich pool of information from your customer base by acquiring their feedback after every customer interaction.
By doing this, you can gain insight into whether their needs are being sufficiently met, what financial products or services they’re interested in, their financial goals for the future, how their customer experience can be improved, and more.
There are some ways to gain customer feedback, but the most practical approach is to establish check-ins across all touchpoints.
For example, if a customer were to contact your bank’s call center with a service request, the representative responsible for processing that request might close out the call by asking whether the customer had any additional questions and whether they were satisfied with the service they received.
Every customer engagement platform needs a digital-friendly service experience that gets customers what they need regardless of the device they use.
For example, customers can be easily frustrated if they try to open a new credit card from a mobile device, only to be redirected to a full-size desktop webpage. In the worst cases, customers are forced to physically sign documents or come into a branch to even begin the process.
Mobile-first banks are prepared against shifts in device preference with the flexibility to meet their customers wherever they are. Mobile users have already exceeded those of traditional online banking.
A dynamic interface design and full-featured portals on any platform feel more approachable, ultimately keeping customers loyal.
Providing an end-to-end digital facelift can also involve no manual processes. Managing documents via electronic signatures and other tools can streamline your backend to improve customer service.
Even when leaving room for customers who prefer paper, digitizing behind the scenes will help you keep all their information at your team’s fingertips.
Leveraging contextual data is an excellent way for banks and financial institutions to survive and thrive in the long run.
In a nutshell, contextual data refers to any form of information that provides valuable context about a person/organization and an event.
In banks and financial institutions, contextual data can be used to identify behavioral patterns and gauge customer loyalty, which they can then use to improve customer relationships.
The data collected can also be used to create bespoke financial solutions specifically tailored to meet the needs of every customer. For banks and financial institutions, their most valuable sources of contextual customer data are their help desks and CRM (customer relationship management) tools.
While banks can use CRMs to track contact details, location, social media activity, and purchasing preferences of the customer, helpdesks or customer service software can be used to track their post-purchase interactions and their support requests.
Many help desk tools come with built-in analytics suites that can help you keep track of all your customer service KPIs without having to invest in another tool to track them. All information can then be used to piece together a 360-degree view of the customer.
Furthermore, these customer profiles can help you tailor your financial products, upsell, cross-sell, create targeted marketing campaigns, and even design loyalty programs/provide preferential customer service.
Technology is rapidly changing the way we work, communicate, and bank. Those who are steering the ship understand the importance of not only better meeting consumers where they are today but also planning ahead to proactively address new needs in the future.
The below-mentioned financial service leaders are freeing up members of the team to deliver higher levels of service and tailor offers to make banking more personal.
Virginia-based Navy Federal Credit Union exclusively serves the military, veterans, and their families — a segment to which it promises “once a member, always a member.”
Great customer service is important in delivering on this promise, and the Navy Federal Union realized that.
“As a lender, it’s really important for us to be consistent in the member service experience” explained Prabha KC, a mortgage loan officer at the company. “If the members are overseas they can still access their loan information.”
Offering self-service channels was one way the company sought to improve its service delivery, not only facilitating 24/7 support but also freeing up its member service representatives to do more added-value work on behalf of their members.
As a result of the implementation, the number of self-service applications doubled and the time taken to submit an application decreased by 40%.
Investing in personalization empowers banks to deliver the white glove service that customers are looking for. In fact, the majority 72% of customers say that personalization is highly important in financial services today.
Oklahoma-based BOK Financial adopted strategies to help it meet consumer demand for an intuitive and personalized banking experience.
By running consumer loans and mortgage applications, the company is delivering a tailored experience and, as a result, has seen completion rates more than triple. Moreover, the majority of volume now comes through digital channels — in stark contrast to the previous 15%.
When banking teams prioritize their customers’ needs and preferences, they can deliver better service, and they can achieve more impactful customer relationships as a result.
During the global pandemic, many lenders, including Texas-based Amarillo National Bank (ANB), searched for ways to continue closing loans remotely. The value of hybrid and electronic closing methods quickly became clear.
“We knew we had to move forward with the hybrid closings so that our customers didn’t have to go into the title companies to close their loans,” Debbie Bigelow, senior vice president, recalled. They will continue to adopt innovations that allow them to succeed in a rapidly changing operating environment.
Challenges: Chase Bank encountered serious issues in handling a high volume of customer inquiries and complaints.
Achievement: They invested in advanced customer service AI bots to meet consumer demand for intuitive and personalized service. These bots triage and resolve common queries quickly. This allowed human agents to focus on more complex issues.
Why it works: Chase Bank enhanced operational efficiency and significantly reduced wait times just by automating routine interactions. But what result did it bring? Customers appreciated the immediate responses from AI bots for simple queries, while more complicated matters received dedicated attention from human agents. This balance improved overall customer satisfaction.
Challenges: Integrating automated digital banking solutions while maintaining personalized customer interactions.
Achievement: DBS Bank launched a comprehensive mobile banking app with AI-powered chatbots for instant support, meeting consumer demand for convenience and personalization. Proactive notifications keep customers informed about their account activities.
Why it works: Combining digital convenience with personalized service, DBS Bank effectively caters to diverse customer needs. The app’s user-friendly interface and real-time assistance made banking more accessible and efficient, while proactive communication helped build trust and prevent issues from escalating.
Challenges: Differentiating in a competitive market with high expectations for service quality.
Achievement: First Direct established a 24/7 customer service model with well-trained staff empowered to make decisions, providing a personalized service experience. This met consumer demand for immediate and high-quality service.
Why it works: Customers highly value the immediate resolution of their issues and the personalized attention received. The 24/7 availability ensured that help was always accessible, enhancing overall satisfaction and fostering loyalty. Positive word-of-mouth about excellent service further strengthened First Direct’s reputation.
7. ING Bank (Netherlands)
Challenges: Balancing digital innovation with maintaining a human touch in customer interactions.
Achievement: ING Bank introduced “Voice of the Customer” initiatives to align services with consumer demand for personalization. Regular surveys, focus groups, and feedback loops allowed customers to share their experiences and suggestions.
Why it works: This approach ensured that ING Bank remained customer-centric, with services and products that truly met customer needs. Actively listening to and acting on customer feedback built strong rapport and trust. Continuous improvement based on real feedback fostered customer satisfaction and loyalty.
The financial services landscape is in constant flux, with new trends and regulatory measures emerging almost every day. To ensure that your financial institution delivers the best customer experience possible, you need to keep your finger on the pulse of the industry and keep exploring strategies to improve customer service in banking.
It is recommended that banks must open for change and constantly look for ways to improve and embrace new technology. By listening to your customers and making smart investments in digital customer engagement tools, you can guarantee exceptional customer service at your bank or financial institute.
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