By Sophia Trivett NextTV
The poor experience with services prevalent in traditional banks would motivate eight out of 10 of their customers to switch to alternatives like fintech companies, better known as fintech, highlights the Global Retail Banking 2021 Report, compiled by consultancy firms Capgemini and Efma.
According to the analysis, retail-focused banks face the dilemma of having to adapt their offerings to customer expectations, or risk losing them.
The document highlights “As the economic consequences of the Covid-19 crisis continue, the post-pandemic turmoil continues to usher in a new era of customer value-focused banking.”
The exercise shows that banks can implement technology that turns their services into an on-demand scheme, similar to digital streaming service platforms, focused on meeting the specific needs of each customer.
“Facing a new reality, driven by the pandemic, retail banking customers now expect digital and on-demand experiences, highly customised services and 24-hour support,” he explains.
In contrast, bank executives remain wary about adopting technologies in financial services, with trends such as open banking, expanding their services on digital platforms, among others.
The text states: “As banks enter an era in which financial services are integrated into the daily lives of customers, collaboration will be critical to success.”
Additionally, 86% of consumers said they would share their data for a more personalised experience. Thus, incumbents must build digital capabilities to take advantage of these data ecosystems to create, retain and increase value in the new era of banking.
The analysis highlights that due to new trends and increased demand for services, as well as the arrival of competitors that rely on new technology, financial institutions must act quickly to maintain their user base.
The Capgemini report revealed that 61% of financial firms lack a customer experience management team dedicated to identifying roadmaps.
In this sense, banks can improve the customer experience by deploying larger financial services, and reimagining branches as user experience hubs to offer more consistent and secure alternatives at all touch points.
In the past 10 years, companies known as new banks, which have built their expertise on fully digital platforms, as well as fintech companies, have attracted more than 39 million customers.