What’s next: As software goes the way of services, how can financial institutions best take advantage of these investments?  Leveraging today’s technologies can help FIs elevate the Customer Experience (CX) with personalized and integrated communications. 

In my Goodbye Software, Hello Service blog, I talked about the rise of digital-only startup banks and the very different approach they are taking in architecting bank technologies and choosing Software as a Service (SaaS) and Platform as a Service (PaaS) operating models as faster routes to banking success. That blog mostly focused on Core Banking technologies, but the SaaS and PaaS models can also be leveraged for downstream customer-critical services. In this blog, we’ll examine how these new technologies can elevate your CX, with a focus on Customer Communications which too many times are unfortunately left behind in lieu of enhancements to the front-end experiences.  

Customers have an insatiable appetite for communications

Every minute of every day institutions globally generate 18 million texts, 188 million emails, 511,000 tweets, 232 VoIP calls and use 4.4 million GB of internet data. The main challenge FIs face is delivering a consistent experience that meets evolving customer expectations across all current and emerging communication touchpoints. This experience is inclusive of the design, messaging, branding, delivery management, etc. for Native App Push, Email, SMS, Print, Social Media, Call Center, Bots, AI, etc.

You might be thinking, “So what? I have most of these touchpoints today.” You are right, but the key facet you’re probably missing is the integrated experience enabled by a consistent data schema and workflow foundation that elevates the communications experience and effectiveness. This high caliber of communication is obvious to the recipient and will evolve over time based on customer demands. Fundamental to these capabilities are Application Programming Interfaces (APIs) that enable banks to pick and choose best-of-breed technologies, allowing the bank to focus on improving the Customer Experience (CX) and increasing Operational Efficiency and Governance.

Loyalty matters

Loyal customers are key to business success, and customer retention is directly impacted by how FIs communicate with their customers. Research shows that 63% of customers would consider switching banking providers if communications don’t meet their expectations. When it came to customers who said that their banks did not proactively offer them personalized services, the customer satisfaction experience rate fell to 39%. Seventy-five percent of enterprises aim to compete and win by offering a digital consumer experience that removes friction and is personalized. A seamless CX is more important than ever to meet these expectations. For example, the millions of communications around "What we are doing about the COVID-19 Pandemic” showcase that an integrated digital CX is required to reach the overall goal of a seamless CX. Integration across all touchpoints is critical.

How do financial institutions get to this seamless CX? Not surprisingly, it’s easier said than done. As cited in my 3 Tips to Enhance the Digital Banking Experience blog , more than 70% of CX leaders struggle to design projects that increase customer loyalty.

Questions to Ask

For FIs wanting to accelerate any CX initiatives already in place and looking for a solution, six questions need to be asked when evaluating the options:

1. How will capabilities evolve without requiring extensive development to support new data schemas, workflow, communication types and new channels?
   
   
2. Will the new solution allow accelerated change management (business-user-enabled) of all communications to meet internal and external demand, or will we be handcuffed to an internal or external software release for these updates?
   
   
3. Will my middle/back office and call center benefit from this solution by having the ability to send ad-hoc communications from a previously approved library?
   
   
4. Will I have end-to-end tracking of all my as-delivered communications for all stakeholders (call center, back office, etc.)?
   
   
5. How is delivery remediation handled? (i.e., failed email delivery to SMS)
   
   
6. Are all required delivery methods supported in one centralized platform?

Answering these questions prior to selecting solutions will result in greater assurance of improved Customer Experience, superior Operational Efficiency, and better Governance.

As software goes the way of services, FIs need to take advantage of emerging technologies and investments in Core technologies by considering and evaluating service options for all key elements of your Customer Experience. A robust data integration and workflow layer along with API integrations allow the different components of your technology infrastructure to have seamless real-time integrations with third-party Customer Communication Management technologies that can accelerate existing digital transformation initiatives as well as taking full advantage of a modern core transformation investment – putting technology to work for you and your customers.

Sources referenced for statistics:

• Capgemini, 2018 Capgemini World Retail Banking Report
• Domo Data Never Sleeps
• The Financial Brand, Banking Communications That Drive Consumers Up the Wall
• 2018 Retail Banking Trends and Predictions, Digital Banking Report