Page 25 - BF Cover January 2021.cdr

ARTICLE

individual separately and all these endeavours are focused Tools to improve customer experience in
on making banking a pleasant experience to the consumers.
In a financial system where all institutions are offering the the banking sector:
same products at a nearly similar cost, the difference in Banking in a smart phone device:
experience is the only feature that now distinguishes one People nowadays run their day to day life with the help of
financial institution from another. their mobile phone devices. Booking tickets, paying bills,

purchasing goods or utility services are done through this
Customer Experience Model: device. Performing banking activities is also expected in the
Business organizations design models of customer same form by the customers. It is seen that the millennial
experience. McKinsey says customer journey should be workforce comprises of the highest share of the customers
understood by seeing the businesses through the customer's doing banking in smart phones. Data by The Financial Brand,
eyes. Figure 1 explains two approaches to creating the 2018 shows that above 60% of millennial perform banking
customer experience. digitally with their smart phones, where the Gen Xers and
seniors continue banking from their desktops. An overall
Figure: 1 42% of customers use their banking providers' mobile app
more than they did a year ago. And all the millennial
together do about 72% of bank transactions digitally, shows
Top-down push
FIS Consumer Banking Report.

Figure: 2
Conviction from top
Customer Experience in Digital Banking
management
Creation of common purpose
Young millennials (18-26) 35% 63% 2%

Transformation of Senior millennials (27-37) 34% 57% 9%
customer
Gen Xers (38-52) 41% 49% 10%
journeys
Baby Boomers (53-71) 54% 34% 12%
Feedhack-loop system to
0% 20% 40% 60% 80% 100% 120%
measure, act, and involve all
employees Desktop/Laptop Smartphone Tablet
Courtesy: The Financial Brand

Hence seamless progress in the bank mobile apps is an
Bottom-up adoption
important tool to retain and capture especially the millennial
clients. Studies also reveal that there is now lesser brand
Courtesy: McKinsey&Co.
loyalty among the end consumers. They move where
The business tries to create value for the customers by convenience exists. Study shows that about 54% of
creating a whole set of new experiences based on market customers are loyal to banks compared to 64% loyalty
conditions, analyzing data, etc. This is the top-down towards insurance companies.
approach. The bottom-up adoption approach measures
improvements in customer experience and involves Internet of Things and Data Analysis:
employees in implementing changes by analyzing the Billions of devices are now connected to each other and data
feedback received from websites, social media and app flow around the interrelated things. This vast pool of data
stores across customer segments. In the middle is the is analysed on the cloud system. The most widely used 'thing'
outcome of the efforts of the management and the is the smart phone which has grown at a breathtaking pace
employees i.e. the end to end journey of the customer. over the years. Figure 3 shows the trend.

BANKING FINANCE | JANUARY | 2021 | 25