By Rachel Curtis, Financial Services Sector Lead at Content Guru

Although wide-scale lockdowns driven by Covid-19 are hopefully in the rear-view mirror, the direction of travel for bank branches that started before the pandemic has continued to accelerate. The adoption of digital services within banking and finance has been growing slowly, but the pandemic accelerated the shift amongst users that were initially reluctant to opt for these channels. Today’s reality is that less and less customers are needing to access counter services at bank branches, due mainly to the proliferation of technology. Add in the factor that customer experience (CX) is now established as the key differentiator between providers, and it’s clear that relationships with customers need to be rethought.

Since reopening after lockdown, one fifth (20%) of people have not visited a bank branch, highlighting the declining need to attend in-person to carry out simple activities such as paying in a cheque or applying for a loan. To meet the decline in demand, banks are adapting services accordingly. In fact, research has revealed that over 300 bank branches are due to close permanently in 2022, demonstrating the continued move away from physical channels that Covid-19 acted as a catalyst for. Here are three key areas we believe banks should be focusing on to adapt to this shift and effectively meet customer needs:

1. Best in class service through every channel

The move from physical to digital communication continues to be a huge opportunity for banks, but the CX they provide is key to making this digital dream a reality. The core aim for banks is simple: provide customers with the support they need, in the most appropriate and efficient way possible. Although some customers will need to discuss complex issues with a staff member, the vast majority can self-serve through channels such as AI-lead live chats, allowing human agents to focus attention on the more intricate enquiries that require their expertise.

Considerations also need to be made for customers that begin their interaction in one channel and wish to complete it on another. For example, a customer that has reached out via social media, but subsequently wants to speak directly to an agent later in the transaction. Ensuring users can take the most appropriate path, have the ability to switch channels seamlessly, and receive a high level of support through their desired channels is key to success in customer service.

In order for customers to choose the most appropriate channel or channels, banks must have a diverse range of options. Effective omnichannel models include traditional voice options but also allow customers to use web chat, SMS, email, social media and more. No matter which channel the customer opts for, it is important they experience a fast and effective service. As such, all channels must be augmented with self-service and automation technologies that are designed to simplify the customer journey and assist agents in their roles when delivering support – for example, actively analysing the interaction and proactively serving the right content.

Digital challenger banks such as Monzo and Starling have found it easier to create models that allow for omnichannel interactions and the CX journey has been designed with self-service and automation in mind. Unfortunately for legacy banks, the transition is more difficult. But with established providers facing strong competition from digital challenger banks, the message is simple – adapt or die (albeit slowly!).

2. The human touch in a digital world

With a growing number of digital and social channels, and in-branch experiences declining, it’s important for banks to ensure they don’t lose sight of the ‘human touch’. Human-to-human experiences are important for building rapport with customers, and the cost of living crisis has only made this more apparent. With an increasing number of customers contacting banking and financial service providers with complex challenges, the personal connection between brand and customer should be top priority.

Aiming to effectively deliver a service that provides a ‘human touch’ isn’t new, but thanks to new technology it is now easier, and more cost-effective, to implement. New developments enable non-human solutions, such as AI, to provide a personal feel, thanks to technology that allows customer-facing virtual assistants to deliver automated interactions in a human-like manner. Technology is allowing businesses to tailor every conversation with customers, no matter which channel they opt to use; ensuring that even if a human isn’t physically present in an interaction, the encounter has all the hallmarks of one that would.

3. Every interaction matters

The digital transformation of the banking and financial services sector isn’t one that has happened overnight. Gradually, as technology has advanced, services have kept up; and with consumers becoming increasingly tech-savvy, a digital future awaits. Less interaction with customers means it’s critical that those that are comfortable self-serving remain engaged and don’t feel like second-class or under valued customers. To ensure self-service customers are receiving as good an experience as those going through other channels, personalisation will be key.

The vast majority of banking will now be done through digital portals, apps, online and eventually it is likely that immersive CX will be integrated, as virtual spaces play an increasing role in our lives. There is an opportunity to ensure customers are getting a service tailored to their needs through digital channels, and if done correctly, it is likely to boost customer experience, create a positive connection between banks and their users, and reduce the cost to serve. Data plays a crucial role in providing personalisation for customers, and to fully embrace it banks must ensure their platforms can monitor and deliver the tangible insights needed.

Identifying customer needs and ensuring they are met effectively and efficiently is the bedrock of the customer experience, and it always has been. Although there are many factors that must be considered, businesses should first and foremost ensure they accurately identify the customer’s needs and then route them effectively. There can be no room for complacency here, as the first stage is where so many customer journeys fail. Then, having channels that allow customers to self-serve must sit alongside those that allow customers to speak seamlessly with an agent if required, incorporating the ability to interlink should the customer’s channel preference change during the interaction.

Technologies that deliver the ability to enhance digital experiences and also drive digitisation mean banks are operating in a new environment. Both legacy and challenger banks must harness modern technologies that underpin CX if they want to accelerate towards a successful future. In principle, the industry can finally achieve the CX holy grail of the segment of one whilst also reducing costs. However, unlike in the past, the limitation is no longer the technology, it is now all down to the quality of our data and the imagination of the humans designing customer journeys. If businesses can get this right, they can well-set for the future.