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How a customer centric approach can help banks support consumers with money worries
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Global Banking & Finance Review®
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By Brandon Aitken, Global Business Director | Financial Services Sector at Webhelp
The global pandemic, inflation reaching record heights and the cost-of-living crisis are the perfect storm that has worsened financial situations for many across the globe. In the US, a quarter of Americans say they felt financially stressed all of the last year. And in the UK, three-in-eight adults say they have seen their financial situation worsen since the pandemic, with 15% concerned that it has become significantly worse, according to the FCA.
Unfortunately, there is an undeniable link between money worries and mental health. The financial crunch is leading to a mental health crisis that is only starting to hit. Thankfully, it is a situation that isn’t being ignored. It can be argued that there has never been more awareness of the impact of money worries on a person’s wellbeing. This has to be a good thing. Society has a golden opportunity to radically change how it supports and helps people with money issues.
An opportunity to rebrand
Banks have inevitably been the ones thrust to the front line. The good news is that consumers have been embracing their position. Banks do see an opportunity to rebrand themselves not just as financial product providers but as financial care providers.
However, to do so effectively, offering support without judgement is crucial. A customer-centric approach will help banks provide support whilst minimising consumer confusion. This is especially important at such a stressful time. Undertaking such an approach can help foster goodwill and positively impact the bottom line.
Widespread financial confusion
How well a consumer can navigate changes to taxes and inflation can significantly impact what they’re able to put on the table for their family. However, it often baffles the average consumer. Just look at the widespread confusion brought upon by the Energy Bills Support Scheme earlier this year.
It is no surprise. Banking and taxation use a wealth of language that seems designed to confuse. So much so that a study in 2019 found a clear trend of declining financial literacy among young adults, with four in five failing a basic financial literacy test.
Raising financial literacy will help improve the economic outcomes of millions of people. It will lead to less unmanageable debt and less need for difficult conversations with loved ones. Knowledge is power and will put people back in control of their money. Addressing financial literacy and being more upfront with customers can be the perfect opportunity for banks to show that they care. They can pivot their brand to become a friendly financial care provider, not an enemy to the people trying to make money at every turn.
A shift of focus
Digital service is increasingly important and can make an enormous difference if built with empathy. However, it can only go so far and is most effective if paired with real-life human contact. Rationalising with another human being can help a concerned customer and tackle their problems head-on. Putting problems in perspective can also decrease worry.
Focus on training your customer experience front line. Supportive advisors can talk customers through detailed products, solutions, and support schemes whilst providing salient advice on what to prioritise. It requires a shift of focus – a move from debt management to financial care. In our experience, language is a big part of it, particularly in digital services.
Technology can be designed to recognise consumer concerns by analysing their language and tone of voice. These clever algorithms can be used to raise alarm bells. Similarly, using technology to find the right words can be instrumental in reassuring customers. A human voice and empathetic language will make the conversation authentic and genuine.
Additionally, technology can also be used to recognise problems before they occur. It can spot trends in data. For example, it can identify and flag customers running low on money and help refer them to the financial care team.
Fostering loyalty
To guarantee their future, financial service organisations need to view their customers are humans and build their approach around this. Support teams can deliver game-changing customer experiences and foster brand loyalty by focusing on long-term outcomes rather than short-term fixes.
Banks are financial experts, and consumers are not. Now is the time to take a more customer-centric approach to help consumers with money worries. Banks who can provide support and guidance will accelerate their success. However, investing in customer support teams will be crucial to do this effectively. Experience shows a clear connection between investing in customer experience colleagues and positively impacting customer wellbeing. It makes perfect sense. By covering and making sure to support their best interests, colleagues will feel more engaged with their work and add more value to the customers they serve.
Financial literacy is the ability to understand and effectively use various financial skills, including personal finance management, budgeting, and investing. It empowers individuals to make informed decisions about their financial resources.
A customer-centric approach focuses on creating a positive experience for customers at every stage of their interaction with a business. It involves understanding customer needs and preferences to enhance satisfaction and loyalty.
Financial care providers are institutions, like banks, that prioritize the well-being of their customers by offering support, education, and resources to help them manage their finances effectively.
Technology in banking enhances customer experience by providing digital services such as online banking, mobile apps, and automated customer support, making financial transactions more efficient and accessible.
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