February 2014 Issue

The 'Customer Experience Management Newsletter' from CustomerXPs is your monthly insight on how customer experience is re-shaping the banking business domain.

This would keep you abreast of all the latest trends in Customer Experience Management space and help you leverage your customer experience efforts to the maximum.

Banks need to focus on selling right products to customers, says KPMG

A new report from KPMG says the industry is at a crossroads and needs to re-focus its business strategy on selling products and services.

The banking industry is at a crucial point in its existence where an increased focus on generating new sources of revenue through better connectivity with customers will be critical to drive future growth, according to a new report from KPMG. The report points out that while banks have been able to hold the fort during these last four years after the financial crisis -- bolstering balance sheets, adapting to new regulatory regimes and cutting costs -- they have not been able to grow their top line.

“Banks must switch from a business strategy anchored in defense -- selling businesses, reducing headcount, and offshoring, in order to cut costs -- to one centered on offense that is all about selling products and services that meet customer demands and needs,” said Brian Stephens, national leader of the Banking and Capital Markets practice at KPMG LLP, in the report. “The banks that embrace change and systematically transform themselves to become more customer-centric will achieve a competitive advantage in the marketplace.”

KMPG notes several strategies that banks should pursue in order to achieve this goal. Firstly, they must find new ways to connect with customers by leveraging information technology to better understand what customers want and how banks can deliver it. Related to this is a focus on improving their abilities to effectively manage and leverage data, including their analytics and predictive modeling capabilities, the report notes.

KMPG also predicts the next industry crisis could center around IT, given the amount of data banks possess, and how valuable that data is, combined with the complexity of most bank IT systems, some of which are highly integrated and others disjointed.

"All this will put a heightened burden on IT in the years ahead, when it must play a central role in allowing banks to pivot from defense to offense," the report states. "IT must provide the information needed to determine which services and products will actually boost ROE. It must enable efforts to connect with customers, both retail and commercial. It will form the backbone of new products and services. None of this will happen if banks don’t approach IT the right way, and don’t move past the notion that using technology to attract and retain customers is an IT job. It is, unquestionably, a top-of-the-house strategic imperative, and everything about these changes in technology must be driven by the customer and the business imperatives."

Source: Banktech

Forrester Customer Experience Survey for banks released

USAA took the top spot in a new customer experience ranking for banks and credit unions released in January by Forrester.

The ranking is based on a survey of 7,500 US consumers, who were asked to select the companies they interact with most across 14 different industries, and to then answer three questions about each brand in regards to customer experience: how enjoyable and easy they are to do business with, and how effective they are at meeting customer needs.

The banking industry ...

Barclays Bank unveils 24-hour branch in Kenya

Barclays Bank of Kenya has opened the first ever 24-hour branch at the port of Mombasa. The branch will serve the entire business community within Mombasa port area as the East African gateway continues to enhance efficiency. The launch is part of a three-year strategy focusing on enhancing service delivery to clients via multi-channeled solutions.

Barclays Bank of Kenya Managing Director said the coastal region is an important market for the bank. He said the branch embraces technology ...

Effective Customer Retention through early Customer Attrition Detection

Traditionally, banks focus more on acquiring new customers since it leads to higher sales and profits. But it is imperative for banks to understand that current customers may actually contain more untapped potential than theoretical new ones. Banks do have dedicated teams and specialized offers that they can extend to prevent a potential churner from abandoning the bank. In very few instances, however, the save rate exceeds 30 to 40%, meaning that the majority of all attempts to prevent churn ...

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