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Business

Responding in a crisis, for lasting change

Responding in a crisis, for lasting change

How the FS industry can rethink its service to customers to regain trust and loyalty

Massimiliano Alvisini

Massimiliano Alvisini

By Massimiliano Alvisini, Head of Western Union Global Network, EUCIS & Africa

The financial and economic impact of the Coronavirus pandemic is affecting all of us, with the consequences unlikely to disappear any time soon.

Alongside supermarkets, takeaway apps and health providers, financial services (FS) providers are central to the survival of many households during these trying times. Many people are looking for help to manage their money – whether it is worries over job security, furlough schemes, sick pay, mortgage or rent payments, the ability to send money to family and loved ones abroad, decimated rainy-day savings pots, or plummeting stock markets.

Considering these challenges, the financial services industry has a clear opportunity to demonstrate its value and purpose afresh by putting customer needs first and foremost. With the pandemic set to be a great leveller, FS firms have a duty to connect people, communities, and businesses – one customer or client at a time. This is especially true for financial firms that have a global footprint. By stepping up to this responsibility, FS firms can better enable the global economy to create new opportunities and form more inclusive societies.

The FS industry is under continuous scrutiny, in part prompted by a host of internal and external landscape issues –from trust issues during the global crash of 2008 to other operational governance concerns. Public awareness of data privacy issues further puts the onus on financial services providers to earn trust. According to the latest KPMG Consumer Loss Barometer, almost half (48%) of consumers believe their financial institutions have full or joint responsibility for ensuring that mobile devices used for their services are secure.

Rising to this customer-first challenge during a pandemic is not easy, for sure. But despite the complexities involved, five main factors remain critical to success:

  • Responding at pace to external factors beyond the industry’s control;
  • Introducing innovative and tailored product or service solutions – across variable devices;
  • Being human and fully transparent when empathising with customers;
  • Boosting customer protection in a climate of increased fraud e.g. via customer alerts;
  • Keeping the pandemic’s global context front of mind, ensuring every client is served with a mindset grounded in collaboration, innovation and flexibility.

…. And all this, of course, while simultaneously dealing with the pandemic’s impact on financial services’ own employees and working practices. This includes boosting remote working capabilities and training, as well as updating internal health and safety guidelines. As the eyes of the global public turn to the world’s key financial players, there is no doubt that the entire FS industry is once again facing enormous pressure.

According to the latest data, however, those firms who do succeed in developing a customer-first and proactive approach are set to come out stronger. At a time when consumers expect corporations to align their efforts and initiatives with the communities they serve, consumers rank corporations (85%) nearly as important as national government (94%) when it comes to responding to the COVID-19 crisis. However, a staggering 70% of consumers worldwide feel that major corporations are falling short of expectations.[1] This is a chance to put that right.

Some FS bodies across the globe have already been trying to play their part. Data released by the Australian Banking Association (ABA), for example,shows that banks are escalating their assistance to consumers and businesses in an economy overshadowed by COVID-19. This approach helps set an example for the wider industry – beyond banks alone – demonstrating how financial firms can place customers at the heart of their offering.

A customer-first strategy will build upon the positive potential which has grown in the industry due to technological advances across many of its subsectors. For example, with more and more of us now banking online, the industry’s focus to date on improving digital services allows us to ‘stay home’ safe rather than travel to a local bank branch. In the same vein, the industry’s role in the global payments network allows the public to maintain social distancing and pay for goods from home via eCommerce stores and portals. Contactless payments technology protects retail workers and customers, too, by reducing the risk of infection when paying in-store with a card, digital wallet or wearable device.

Financial services firms have a duty, however, to render technology as a tool of financial inclusion, not exclusion. While technology is an enabler – allowing money to flow across continents with diverse economic, financial and digital ecosystems – 3.7 billion people remain without internet access globally.[2] Changing personal circumstances due to the pandemic can also affect customer digital accessibility.

We at Western Union are aware of our own responsibility to ensure that our cross-border, cross-currency services remain accessible and safe.We are adapting our operations to ensure the safety of our agents and front-line associates, as well as tailoring our customer offerings by piloting product initiatives. Depending on each situation, services are offered via digital transactions and hard currencies,online or offline. To serve customer necessity in a pandemic context, we believe that flexibility and empathy must work in tandem with the latest technology.

We also know there’s more to be done – by us as well as others across the industry. Small steps forward made today must act as foundation blocks for future progress. With the impact of COVID-19 likely to endure for years yet, the critical role of financial services firms will only increase.

Improved cross-sector collaboration and co-operation will make this progress easier and speedier. Be it via virtual conferences or co-hosted workshops, sharing best practices and relevant insights about customer-first strategies will change the industry for the better.All financial firms – Western Union included – must recognise that easing the economic impact of the pandemic calls for an industry-wide response.

By collectively making customers the priority, we candispel the myths around reputation that have historically tarred the industry and prove its lasting relevance for decades to come.

[1]Covid-19 Mindset Report, Fleishman Hillard True Global Intelligence, April 2020

[2]Coronavirus has exposed the digital divide like never before, World Economic Forum, April 2020

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