Daniel Alpert is a CRM Strategy Consultant at Merkle. Why customer centricity … What many organizations fail to realize is that what is needed is an experienced enabled operating model designed around what is right for the customer, not what is easy for the company. She has worked extensively for leading consumer financial services companies across banking, lending and payments to recruit CEOs, board directors and customer-facing functional leaders. Habitually, banks think channels; customers don’t. In a previous article, The Boston Consulting Group argued that, for retail banks, a focus on customer-centricity—defined as a way of operating “based on trust and fairness that uses knowledge of customers to meet their needs and achieve sustainable, valuable, long-term relationships”—is becoming an increasingly important differentiator in the marketplace. Under the guidance of NK, SunTec has forayed into areas such as offer management, loyalty and relationship-based pricing. The Barcelona-based startup PayRetailers (PayR) helps companies that want to enter the markets in the LATAM region with its diverse suite of payment options through a single integration. To prioritize their customer-centric efforts, banks must simplify complex operations and infrastructure, embrace intelligent technology and partners to create the right service bundles for their customers, and understand how to leverage customer data to offer service-first models. As the banking industry is currently experiencing rapid and widespread changes and customers become more demanding, it is crucial for banks and other mobile service providers to understand the everyday lives of their customers and to integrate their future services into the customers’ value creation processes as smoothly and inseparably as possible. All rights reserved. Nanda Kumar, CEO, SunTec; 28.09.2020 02:01 pm ; Please introduce us your company and products/solutions you are offering. Remember, customer experience is the perception based on the sum total of all customer interactions across multiple touchpoints. Your diet, your schedule, your pleasures, your sleep, your money – just tap on the icon on the screen, and you’ll have all you need. For this to occur, retail institutions need to shift from product-based, transactional focus, to a model that is more customer centric. Transforming banks into customer-centric organizations. Winning companies are responding by creating innovative approaches to the customer experience. Instead of evaluating credit risks and deciding on mortgage approvals, operations staff will work with a… These appointments were the key for establishing a trustworthy relationship and a positive customer experience. Here is insight into achieving accurate performance accountability for your marketing efforts. What can we expect in general for the fintech industry in 2021 (what will be trending in Europe / key markets)? We’ve been around for 17 years and started off working with... At the end of last year, Infosys published a 2020 trends forecast looking at Artificial Intelligence in banking, but much like everyone else, COVID-19 has forced us to reassess that. Over the years, consumers have rapidly and broadly adopted new technologies built with their needs in mind. Customers want to have access to this type of physical experience centers while also being able to perform their banking functions and transactions digitally, whether it be mobile, app or web-based. Here are five tips to overcome these challenges and achieve organizational alignment in your journey to customer centricity. Nanda Kumar: Banks need to embrace and accelerate their digital transformation and customer-centricity strategies to survive and thrive during these unprecedented times. Regardless of whether the organization is aligned around customer segments or products, there should be an integrated organizational structure around the customer experience across media/channels. He has delivered numerous talks across global forums such as SIBOS, 3G Mobile Forum, Indian Banking Summit, Gartner Summits etc. To gain customer centricity, retail banks should realize that they can no longer offer just attractive lending terms or a free checking account to achieve success among customers. The current pandemic has motivated banks to rapidly adopt SaaS and cloud solutions to accelerate their digital transformation efforts. Relevant Customer Experience Beyond Banking – From a Bank It is not enough to have an easy, fast and convenient customer experience when the product is used because the customer has to know about the product and has to have the preference to try it. They are now working hard to keep their distribution channels open while adhering to social distancing guidelines and are being challenged to perform functions that weren’t originally designed to be carried out remotely. Apple Inc. is famed for Several banks did recognize that this was a necessity prior to the pandemic, but COVID-19 and the corresponding market volatility have created a new sense of urgency, and an understanding that we cannot simply revert to an outdated “normal.” While several banks have tried to accommodate customers in the short-term with incentives such as deferred interest, waived or overdraft fees or credit card and mortgage assistance, these measures won’t drive growth, profitability or most importantly, customer loyalty. It’s now more important than everfor banks to adopt a customer-centric approach that spans both physical and digital realms. Please introduce us your company and products/solutions you are offering. In the finance industry, it’s often interpreted as conducting research and delivering products to meet customer needs. As we were preparing for the offsite, it became quite apparent that these leaders were not too interested in why moving to highly addressable marketing was important. This gives banks a unique opportunity to provide value-based engagement and hyper-personalized services to empower their customers, help meet their short and long-term needs, and build and retain their loyalty and trust. This article was originally published on April 14, 2015. Mr. Morris has worked with banks, insurance, and financial markets companies globally in developing and advancing their customer analytics and digital strategy, which includes media/channel, customer/marketing analytics, organizational alignment, enterprise data management, … Mr. Morris has worked with banks, insurance, and financial markets companies globally in developing and advancing their customer analytics and digital strategy, which includes media/channel, customer/marketing analytics, organizational alignment, enterprise data management, data quality, situational and advanced analytics, big data discovery analysis, and data visualization. Twitter Both individuals and businesses expect access to and delivery of services virtually on demand. In summary, the journey to becoming a customer-centric organization is achievable. It is these companies that are in a position to disrupt their industries (i.e., Apple, Google, Amazon, USAA, Tesla, to name a few). But this isn’t just about world-class user interface (UI) or user experience (UX); it is about the overall experience customers have with the bank – better products, better services, better propositions. In the US, the number of bank branches has dropped by 6% since 2009, and is now at the lowest level in more than a decade. For example, Bank Millennium in Poland has … Those companies that have succeeded are able to connect with high-value customers and prospects in a more integrated, relevant, and consistent manner, resulting in innovation, retention and loyalty. In fact, this was not the first time they had headed down this path. Fintech Trends: Customer-Centric Banking Only 20 years ago, the core of customer experience in the banking industry were meetings between clients and account managers. Retail banking trends today include a heavy focus on what it means to be customer-centric in the digital age. Many companies lose sight of the customer experience as internal processes and organizational structures evolve organically over time. A variety of operational roles are charged with supporting these products and managing the rules governing them. Nanda Kumar: Just a year ago, we had predicted that it would take at least another decade for global banks to truly embrace digital transformation. Therefore, organizations need to start with a clearly defined end-to-end customer experience and then translate how that experience will be executed through all interactions across multiple touchpoints. For instance, if a customer reaches out to their bank for a mortgage, what stops that bank from helping that customer own that house, instead of just selling its mortgage business? However, statistics show that banks are slow to accelerate this move from a focus on selling products to selling customer-centric relationships. 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