March 2015 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.

5 Essential Strategies for Branch Banking Survival

The digital revolution is changing the daily lives of all consumers. No place is this more evident than in the way people bank. ATMs, telephone, online banking and mobile banking are transforming customers’ banking experience, enabling consumers to bank where and when they want.

The number of branches as well as the size and function of remaining branches must reflect today’s digital distribution realities. What is required is a ‘bricks + clicks’ model, significantly reducing the number of branches and digitizing the back and front office of remaining branches with a mobile-first perspective. Advanced ATMs and Universal Bankers need to replace traditional tellers, and remote advisory services need to be supported.

The Digital Banking Report entitled, ‘Bricks + Clicks: Building the Digital Branch,’ provides an in-depth look at how banks are changing branching strategies to reflect consumer needs and today’s digital capabilities. According to the report, branch distribution in the future must include these 5 digitally-enabled strategies:

Improve the Customer Experience

With greater insights into customer transactions, the channels customers use and even where the customer is at any point in time, there is the potential for a highly custom and personalized experience. The most progressive institutions are also personalizing interactions with branch tellers, branch platform personnel as well as during and after historically paper-based processes such as new account opening, onboarding and relationship expansion.

By showing the consumer that you know them, will look out for them, and will reward them, satisfaction will increase as will cross-sales and loyalty.

Improve Distribution Efficiency

One of the biggest impacts of moving to a more digital delivery of services is the potential for an improved efficiency ratio, or the cost that is incurred for every dollar of revenue that is produced.

Using digital technology to automate both back-office and customer-facing processes – taking work that is currently done in a very manual and error-prone way and digitizing these processes – can eliminate large components of the cost structure including branch-based costs. It can also positively impact revenues across the board.

Close and Move Branches

Doing nothing with today’s branch structure is not an option in an environment where costs need to be reduced and the customer experience needs to be improved. An effective distribution strategy in the future includes closing branch offices. Remaining offices will most likely need to be moved to higher traffic locations and right-sized for their future purpose.

Reduce Branch Footprints

By reducing the size of the individual units, institutions may find that they can access new locations that couldn’t support a full service branch, and in other cases replace full-service branches with less expensive models. This may bring rise to the question, what defines a branch? Is an unattended location with video tellers that can do everything a live teller can do, a branch or an ATM?

Increase Digital Integration

Beyond hardware improvements, such as advanced technology ATMs, video tellers, branch-based tablets, cash recyclers and digital signage, branches need to integrate digital workforce management for internal resource optimization and digital schedulers for customers, where appointments can be pre-arranged. In addition, the potential for leveraging iBeacon technology at the branch level provides potential.

Source: The Financial Brand

Customer Experience Determines Choice of Primary Bank by Customers in Malaysia

Customer experience is the single most important factor in determining the choice of the primary bank for customers in Malaysia, says Frost & Sullivan. Mr. Hazmi Yusof, Country Head, Malaysia & Senior Vice President, Asia Pacific at Frost & Sullivan said that the Frost & Sullivan Malaysian Banking Services Customer Experience study showed that 81 per cent of the respondents surveyed disclosed that the ...

UAE banks promise better customer service

The Collinson Group, a company that studies customer behaviour, sees an increased competitive pressure in the UAE that is making companies try harder to keep their customer numbers and business by keeping their clients happy and loyal.

This is clearly evident in financial services in the country, where customer loyalty is the most fickle and customer service the most elusive. The study highlights that three quarters (75 per ...

Customer Experience in Banks in Nigeria

Customer experience in banks has seen a downward trend in Nigeria since 2012. The study says, Nigerian Banks are going through turmoil. The reason is increasing fraud prevailing in the industry.The loss caused by fraudulent activities has mounted up to 19.06 billion Naira in 2012 from 1.65 billion Naira in 2000. . The fraudsters hit the bank hardest in year 2008 with whooping loss valuing around 34.8 billion Naira. With the increasing fraudulent activities via ...

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