Customer experience, or CX, is fast becoming the competitive differentiator in the banking industry.

Banks, and financial institutions that invest in customer experience achieve, on average, higher recommendation rates also a higher share of wallet, and are more likely to cross-sell and up-sell alternative products and services.

According to a recent Gartner study, 81% of companies compete primarily on the basis of the customer relationship, making that point a key competitive differentiator for banks. The Gartner study also reveals that the better a customer’s experience in terms of quality, the more likely they are to remain loyal to a particular brand or institution. This means that CX has the power to improve customer retention.

So, in summary, it is critical that the banking sector gets its CX strategy right.

As CX plays an growing role in a bank’s success, what will the consumer banking landscape look like in the next five years? And what emerging CX trends will we see introduced in that time?

• Products and services integrated into mobile applications to deliver personalized experiences

Customer “self-service” is one of the fastest growing CX trends in the banking industry today. Because most customers using mobile apps for a wide range of services (such as shopping, utilities, etc.), it is almost an expectation that banks will offer this service as well. The teams and associated expertise needed to create, manage and optimize such applications are not difficult for enterprise organizations to manage internally. Ensuring a personalized in-app experience that allows many customers to self-manage within their application will help to strengthen their engagement.

• The evolution of AI

Instead of waiting on the phone, customers now have the option to consult AI-enabled chatbots when faced with challenges. These chatbots process information from diferents sources, such as the bank’s knowledge base and CRM customer profiles, to respond to customer service requests. If a particular request exceeds the chatbot’s capabilities, it is automatically referred to a live service representative who can help the customer find a solution. Best of all, more and more banking applications are offering chatbot technology as a native functionality, meaning customers can quickly resolve issues from anywhere, anytime.

• The rise of digitalization

The pandemic and impending closures limited, and in some cases eliminated, customers’ ability to physically visit their banks. This fact has caused the voice channels were often overwhelmed. To deliver a great customer experience, it is critical that banks offer customers alternative digital channels as another method of customer service and support. But this is easier said than done. Deploying an integrated omnichannel communication strategy with end-to-end reporting and data is one thing, and providing the tools and support to less tech-savvy customers is another challenge that banks have yet to settle.

• Humanizing digital interactions

Offering customers a range of channels is a good first step in delivering great CX in banking. However, while many customers may be comfortable interacting with a “bot,” there will be just as many who struggle with a lack of humanization in their interactions with the bank. This is especially true when those interactions involve the exchange of sensitive information or data. Therefore, it is critical that banks find ways to soften the use of bots by giving them personalities and allowing that bot service to join the human-assisted service.

So we have the four key trends in CX that will be seen in the banking landscape in the coming years.

What is clear is that the banking industry is changing constantly and very fast, and CX is a clear differentiator for consumers when choosing the bank where will continue with.

At MST Holding, we help financial institutions deepen their connection with customers around the world. With more than 30 years of experience in the banking sector, we drive the improvement of the Customer Experience as a key factor for the growth of finance companies thanks to their own customers.

Customer experience in fintech is one of the factors that have made the difference between traditional financial services and the emerging sector of neobanks, cryptocurrencies, blockchain, etc.

Therefore, in this article we have summarized everything you need to know about fintech, its importance and how to improve the customer experience in this exponentially growing sector.

What is fintech?

Fintech is a software or technology application that is used to help companies, business owners and consumers better manage their financial transactions in more automated ways through the use of specialized algorithms used by computers and mobile devices.

The term “Fintech” combines the words financial technology, and includes any technology that is used to increase, facilitate, digitize or modify traditional financial services.

Fintech includes different sectors and industries such as education, retail banking, non-profit and fundraising, and investment management, to name a few.

Fintech platforms enable everyday tasks such as depositing checks, moving money between accounts, paying bills, or applying for financial aid.  They also encompass concepts such as peer-to-peer lending or cryptocurrency exchanges.

Advantages of providing customer experience in fintech

Financial technology (fintech) companies create new value for consumers by focusing on the customer experience through technology.

Fintech services enhance the customer experience by offering highly personalized services for which traditional banks have not yet designed a powerful solution.

Moreover Fintech companies improve the customer experience with new products, services and functionalities such as blockchain-based marketplaces, cryptocurrencies, global remittances, crowdfunding, cross-border payments and open banking.

Fintechs also complete the customer experience with upgrades to existing functionality, such as: faster payment settlement, smart contracts in trading and lending services, cross-border custody services, payment cards with increased functionality.

The fintech sector has developed new technological tools to improve the customer experience, making the traditional financial-banking model obsolete.

For example, fintechs that offer digital wallets contribute to a seamless customer experience, simplifying operations and facilitating online commerce.

1.Mobile banking

Mobile banking is an important part of the financial technology sector. In the world of personal finance, consumers are increasingly demanding easy digital access to their bank accounts, especially on a mobile phone.

Most of the big banks now offer some form of mobile banking functionality, especially with the rise of digital banks, or “Neobanks.”

Neobanks are essentially banks without physical branches, offering their customers checking, savings, payments and lending services on a completely digitized infrastructure.

5 ways to improve the fintech customer experience

Now that you know what a fintech is and the main areas it covers, it is time to learn how to improve the customer experience in this fast-developing area:

1. Listen to your customers

Get feedback from your customers about your services. You want to know how they feel, understand the problems they face and get an idea of what their priorities are.

You can do this by implementing satisfaction surveys and feedback forms, as well as analyzing customer reviews, customer conversations with your sales, support and customer success teams.

You can also evaluate support ticket trends, cancellations, social media posts that talk about your brand, and anything else you can observe to understand what your customers are looking for. You may also want to be able to perform sentiment analysis on this data.

2. Chatbots and virtual assistants

Customer onboarding is fundamental to the customer experience in finTech, as it helps new users to find themselves in the financial services ecosystem.

To realize customer onboarding, it is recommended to focus on the use of automation to answer simple questions, without missing out on human interaction to increase empathy with the customer’s needs.

Most people are not technologically or financially savvy, so it is advisable to implement different types of self-service (such as an efficient FAQ section) to automate the application knowledge process and stop people managing their money on the fly.

3. Make your UX implementation flow smooth and responsive.

People base their opinion of FinTech apps on how easy, intuitive and fast their transactions are. Therefore, the app design needs to be optimized for most devices and screen sizes.

A very important part of the customer experience in Fintechs has to do with how easy it is for your customers to use your platform. The idea is to reduce customer fatigue and create a seamless experience that is never interrupted.

4. Increase your data security

There is literally no way you can offer your customers a positive client experience program if they don’t trust you.

As a FinTech company, data security should be one of your primary concerns. In addition to ensuring the privacy and security of financial transactions and operations, you must also ensure that customer support data is well protected.

Make sure you comply with the PCI DSS (PaymentCardIndustry Data Security Standard) as well as ISO/IEC 27001:2013.

5. Commitment to omnichannel

Offering an omnichannel customer experience is essential to keep up with today’s requirements.

Your customers want to be able to contact you through whatever channel they are using at any time. You shouldn’t force them to switch channels to get in touch.

However, if they decide to get in touch through one medium and then move to another channel, you should make it possible for them to continue their interaction flawlessly across multiple channels without having to start from scratch.

Your chatbot and agents should have the context of previous conversations carried across all customer touchpoints, making their experience truly omnichannel.

Conclusion

If you would like to know more about how to improve the customer experience in the industry contact marketing@mstholding.com or through our website www.mstholding.com.