An Insight for Online Retail Banking & Customer Experience

With banking on the internet being around for quite some time, there is no doubt that banking has been made a lot easier and convenient for many. With more people shopping online and taking on various tasks with the use of the internet, it comes as no surprise that online banking also continues to grow and become a prosperous way of business for people all over the world.

The Branch

However, there is competition between the world of online banking when it comes to drawing more loyal customers, and that competition would be the branch. Despite online convenience, the branch is ranked one of the highest choices for customers when it comes to banking. There are many reasons as to why this is true, and the least of these truths is not solely based on the fact of psychological comfort. Many people simply enjoy the physical environment of the branch, as well as the fact that the staff is readily available to serve them and their needs. Banking customers simply want what they can trust and what they feel comfortable with and that is what they get with the branch.

Customer Engagement and Value

With that being said, it comes as no surprise knowing that a recent study showed the fact that customer engagement played a huge role in their satisfaction when it came to determining the quality of their banking experiences. This drive was shown to come from the emotional aspect of these customers.

Emotional alignment rings true when it comes to banks having good communication, trust, and loyalty with their customers. It’s a little harder for those three things to be accomplished over internet banking. This shows that there is a need for banks to better understand their customers and their customers’ personal needs in order to resolve any issues they might be having. This is why face to face business is needed when handing financial needs.

Better Organization

Branches tend to be a bit more organized according to customers, as opposed to online banks; the reason being because the expectations are set higher for them. With the type of bond that they build with their customers, they are expected to stay more organized and on top of tasks that are requested by their customers. This would be why branches use several different resources and tools such as trade risk management to help them with managing business needs and demands for their clientele.

Lack of Advisory Services

Online banks don’t offer advisory services, which limits them in ways that branches aren’t limited. However, branches do have the advantage of customers seeking their help when they are getting ready to make hug financial decisions, like taking out loans to purchase a house. Purchasing a home requires more of an intimate one on one relationship between the branch and the customer, because it is easier and much more logical for the institute to show the client the options that they have when it comes to completing an application for a homeowner’s loan. It would be much more difficult to achieve this with an online bank.

The Bottom Line

So despite the convenience and easy access of online banking, there are many customers who still require branches for certain financial needs that they might have. So as for online banking being able to compete with local branches, they still have a long ways to go to figure out how to make a more close-knit connection with their customers. Surely there are some ways that they can become more innovative as technology improves over time, in a way that will allow them to have a more intimate relationship with their clients.