Focusing on the customer is essential in a society that’s changing quickly with digital technology that’s constantly evolving.?Fortunately, banking has always been a human-centered business. Financial services firms built their success by delivering products and services based on relationships, trust, and education. Chances are, you’ve done business with a friendly bank teller, reliable loan officer, or trusted financial advisor. While today’s customers feel comfortable doing business in a digital environment, they still value human relationships.?As the marketplace evolves, customers also want banks to deliver on higher needs such as purpose, personalization, trust, and convenience.?
How can banks build success and deliver on these customer expectations? We believe there are four actions leading organizations can take to deliver human-centered experiences:
- Put customers first. Embrace new platforms and business models that lead to differentiated services and fresh approaches to revenue generation with an eye toward customer values.?To meet customer expectations for security,?Allstate?now offers a new app as a value-added identity protection service. Others rely on algorithms to recognize customer milestones—paying off a mortgage or welcoming a baby—to trigger personalized experiences such as delivering a deed or offering a mortgage holiday. Some fintechs and banks provide purpose-filled offerings and experiences by building environmentally-focused portfolios or committing profits to positive social and environmental causes.?
- ?Use technology to its full potential?by pairing its power with human ingenuity to offer highly personalized financial advice and experiences. Machine learning allows banks and investment managers to provide personalized spending and saving recommendations, while smart algorithms and data from IoT sensors and wearables help integrate financial planning into the daily lives of customers. AI-powered advisors and new platforms can reach customers who previously did not have access to investment opportunities, offering tools for savings and retirement planning.?
- Use data in innovative and responsible ways?to engage customers and create new value. Every banking customer is unique, and financial institutions can take advantage of data flows and insights to provide more direct and personalized service. Hedge fund managers were among the first to use alternative data such as consumer spending metrics, social media analytics, and geospatial data in the investment process. Financial services companies have an opportunity to harness data to put their customers front and center and deliver memorable experiences. However, maintaining customer trust depends on using this data responsibly and protecting customer privacy and security.?
- Forge unexpected relationships?and build strong partner ecosystems that allow you to reach the next generation of customers who appreciate convenience, expect personalized offerings, and demand new solutions. As growth from traditional revenue models declines, FSI firms can seek growth opportunities in a broader network.??New players will continue to emerge, including fintechs, digital giants, even disrupters from other industries. These customer-centric businesses will look to financial services firms to help them build a “financial layer” for payments, lending, and insurance into their offering.?Google’s Plex bank account is an example: developed in partnership with several banks, users can open bank accounts, pay friends, and make budgets using a familiar platform.?
By taking these actions and applying the right insights, financial services companies can engage with their customers in more direct, personalized ways. Human-centered digital experiences help FSI firms get closer—and stay closer—to their customers, whether through mobile apps, instant advice, or tailored investment portfolios. While completing an online transaction may never take the place of closing a loan with a real-life handshake, it can still offer ease, convenience, and delight—and earn customer trust in the process.?
Our report,?A Higher Bottom Line,?looks at seven forces driving the future of financial services across the macro environment, value capture, and value creation.?
