Banking Execs and Consumers Clash Over Customer Experience
There's a big disconnect between what consumers want and how banking providers see themselves.
Consumers crave a more personalized experience from banking providers, but retail institutions think they are already doing a pretty good job. Banks and credit unions say it’s easy doing business with them; consumers disagree. Banking execs are looking at turning their branches into cafés, while consumers only want improved convenience in the form of extended hours and more remote delivery options.
The banking industry can’t keep this up. It’s time to ditch the excuses and foolish delusions. Banks and credit unions simply must respond to the rapidly evolving needs and expectations of today’s consumers. This starts with acknowledging all the faults and flaws inherent in an arcane delivery model, then putting a comprehensive digital strategy on the fast track.
Sheesh, This Is So Easy!
Three out of every four financial executives (75%) in a TimeTrade survey believe that it is easy for people to interact with their institution. 22% feel that it is easier in some channels but not in others. Only 3% say that it isn’t easy interacting with their institution.
This is pure lunacy.
Anyone working in financial services who thinks banking is “easy” is completely out of touch with reality. There are few industries that frustrate consumers more than banking. It’s rife with bureaucracy, paperwork and inefficient processes.
How hard is it to get a loan? How many pages is your loan application? How many trips to the branch do people have to make? How long does it take before an applicant is approved?
What about opening an account? Can someone open and fund an account without having to step foot in a branch?
How about your website? How many clicks does it take for consumers to find what they are looking for on your website? How deep do they have to dig?
Why do people who call the contact center have to repeat their card number after they’ve already typed it in?
31 pages of disclosure is not simple. Listing 14 different checking accounts with 39 possible fees is not simple. Banking terminology is not simple — HELOCs, FDIC, EHL, 401K, NSF, ARMs, IRAs. In fact, nothing about banking is simple. And yet this is what consumers yearn for the most. They want banking to be invisible. They want to spend as little time thinking about it as possible.
Banks and credit unions that erroneously believe they are “easy” to do business with are ignoring a huge opportunity to differentiate their experience and their brand.
Read the rest of the article on The Financial Brand
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Great read, thanks @jeffery pilcher. Banks are measuring profitability in fee income and pray for rate increases as loan margins continue to provide little revenue. Where are the innovative products and services that people need to thrive. Fintechs are stepping up to provide value and thoughtful products while many banks continue to sit idle. Lunch eaten!
CTO | Financial Technology | Digital Strategy | Behavioral Economics
7 年Yep. Pretty much says it all: "Anyone working in financial services who thinks banking is “easy” is completely out of touch with reality"
Amen.
Dedicated to the bright future of community banks and credit unions through quality research, thought leadership, and practical strategy.
7 年A very true and thought provoking article Jeffrey. Fortunately I do see some banks and credit unions organizing to attack this huge issue. Moreover, it will only intensify as the next generation emerges into their financial lifecycle. Time to get going!
Senior Quality and IT Leader
7 年I've been giving this a lot of thought...why do banks charge checking account fees? They already have our money but, if we can't afford to keep a certain amount - which is generally exorbitant - they want to charge a fee. I am a long time credit union customer and fan because they don't charge stupid fees just to make even more money. The last big bank I belonged was over 20 years ago. As long as I have an option, I won't ever go back.