2020 Roadmap for Delivering Exceptional Customer Experience in Banking

According to the Economist, a global banking customer today has checking account on a mobile app, rainy day fund at another bank, 14 credit cards, five mortgages, six insurance policies and several pensions across employers. 2020 will be the milestone year where bankers will stitch the patchwork of financial products and serve the global customer in one integrated platform across products.

Building real-time alignment of customer and banking goals will involve taking the below seven concrete actions in customer experience management in banking.

1. Unify systems for best in class digital enablement Successful customer engagement in banking is similar to a marriage. It depends on two-way communication (a.k.a integration). Unfortunately, there is little to nil integration between various operational technology and strategic business components.

Quick Start: Destroy organizational and technology silos by investing in a digital platform that unites systems of things, systems of intelligence, systems of engagement, and systems of records through intelligent journey designers that empower end-to-end digital transformation in customer experience management.

2. Self-service solutions with advanced automation The best service starts and ends with the customer. In 2020, bankers will increasingly embrace machine learning, biometrics, artificial intelligence, and robotic process automation to empower customers to service themselves on the go.

Quick Start: Emotionally intelligent chatbots, voice-enabled personal assistants will break any service barriers between customers and their banks.

3. Personalized campaigns with machine learning Investing in an AI-driven intelligence platform will enable bankers to deploy self-evolving algorithms that perform real-time customer profiling, micro-segmentation, and action-based response campaigns. AI and machine learning are increasingly playing a vital part in creating the perfect messaging content that has the highest conversion probability. 2020 will be the year where bankers will completely eliminate the “one size fits all” approach to campaigns.

Quick Start: A large North American insurer was disappointed in digital campaigns executed over emails, SMS and social as it was delivering the expected boost in customer acquisition numbers. The company was bogged down by fragmented customer segments and legacy systems. To overcome the challenges, they integrated their marketing module, particularly campaign execution with the intelligence-driven machine learning platform.

It's self-evolving decision tree algorithms could perform real-time customer profiling, micro-segmentation, and real-time multi-channel campaign delivery. The result was a 35% improvement in lead conversion rates and a 50% increase in campaign click rates.

4. True customer understanding with deep IoT integration Bankers can achieve true customer intimacy by becoming one through deeper IoT integration. Banks can automate financial advisory services through intelligent investor analytical engines. Bankers will also be in tune with emerging customer preferences in relation to macro trends like climate change, environmental protection, etc.

Quick Start: Advanced IoT linked products like Google Glass, smartwatches, etc. can deliver personalized customer recommendations, coupons and financing offers at the right moment.

5. Branch banking of the future 2020 will see increasing evolution of bank branches from flagship information, advisory and engagement hubs (offering education, financial advice, full-service capabilities, and community offerings) to smart kiosks (offering service, sales, cash, and video contact) at a customer's fingertips.

Bankers will rapidly enhance their footprints by efficiently reducing branch size and costs while at the same time, introducing newer models of digital channels. Digital will encompass human touch as branch officers and customers are on one platform, with one look and feel.

6. Make every product profitable on a standalone basis with reduced costs As the pain and costs of switching banks get lower, competition for customers will intensify across segments. Every traditional bank will strive to become a low-cost producer by offering high-value services by eliminating massive legacy costs and adopting one digital platform for all their needs.

7. Double your sales force productivity with performance accelerators Even with the dominance of digital, customers will need the services of a physical sales force. For instance, High Networth Individuals (HNIs) will need access to experienced RMs for highly complex products. Unfortunately, RMs average only three customer meetings per day against the industry best practice of six.

Bankers will take advantage of sales performance effectiveness accelerator models that combine intelligent planning, real-time tracking along with guided achievements. Intelligent algorithms on modelers take into account past performance, current run rate and create actionable strategies with course corrections to achieve targets. This will free up RMs for more engagement activities.

Ultimately, the winners in 2020 banking will be the one that manages customer experience journeys rigorously, anticipating and removing barriers with greater efficiency, heightened productivity through leaner end to end processes.

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