The banking industry is undergoing a rapid transformation, driven by technological advancements and changing customer expectations. To stay competitive, banks must prioritize improving their customer experience. Here are five key strategies to achieve this goal. 

The Need For Improving Customer Experience

Why should banking institutions prioritize their CX? The primary answer is quite simple: To remain competitive in rapidly changing business scenarios. The digital age means that customers have more choices and higher expectations, making it imperative for banks to adapt. Payment solutions need to be faster, transfers have to happen in split seconds, and all the paperwork associated with banking has to be done away with. 

By investing in CX improvements, banks can differentiate themselves from competitors, build stronger customer relationships, and drive revenue growth. A focus on CX can lead to happier customers that stay on for longer, and also positive word-of-mouth referrals. Improving CX can also help banks reduce operational costs by streamlining processes internally. 

With that said, let’s take a look at the five ways of how to improve customer experience in banking. 

#1: Simplify Account Opening Process

The account opening process is often a frustrating experience for many banking customers. Long forms, multiple documents, and lengthy waiting times can create a negative first impression and deter potential customers from completing the process. It’s essential that banks should first focus on streamlining the onboarding process. 

One way to reduce the abandonment rate during onboarding is to simplify the application process: Eliminating unnecessary fields, offering digital onboarding options, and providing clear and concise instructions are some of the options possible. It’s also a good idea to start implementing biometric authentication, such as fingerprint or facial recognition, which can all simplify the identity verification process and reduce the risk of fraud. By making the account opening process more efficient and convenient, banks can attract new customers and retain the current customers.

#2: Enhance the Mobile App Experience

Mobile apps have now become an indispensable part of the banking experience. In the United States alone, over 75% of banking customers are estimated to be using mobile banking for their financial needs. A well-designed and user-friendly app can therefore significantly enhance the experience for people. Banks must prioritize improving their mobile app offerings to meet the evolving needs and expectations of their customers. 

The first step in this phase is to conduct regular surveys and feedback sessions. By actively seeking customer input, banks can identify pain points, areas for improvement, and uncover hidden opportunities. This feedback can be used to inform updates, enhancements, and new features that directly address customer concerns.

Even if a mobile app has high ratings, it's crucial to conduct regular UX reviews. User experiences can change over time due to technological advancements, shifts in customer preferences, and evolving industry standards. By continuously assessing and refining the app's design and functionality, banks can ensure that it remains relevant, intuitive, and meets the highest standards of user experience.

#3: Promote Self-Service Options

While some self-service options, such as ATMs, have been here for a long time now,  other aspects like online banking have become increasingly popular among banking customers. By allowing customers to manage their accounts independently, banks give customers the opportunity to make decisions and transactions much more easily, which is a positive. 

To meet the growing demand for self-service solutions, banks must ensure that these options are readily available and easy to use. ATMs should be strategically located, online banking platforms should be intuitive and accessible, and mobile apps should offer a seamless user experience. Banks should provide clear instructions and support resources to help customers utilize self-service options effectively.

Investing in advanced technology is essential for providing customers with a seamless self-service experience. This includes implementing robust security measures to protect customer data, offering personalized recommendations and alerts, and integrating self-service options with other banking channels. By utilizing technology to allow for customer independence, banks can reduce operational costs, and stay ahead of the competition.

#4: Personalize Customer Interactions

Personalization is one of the most important aspects in delivering exceptional customer experiences in the banking industry. By understanding their customers' individual needs and preferences, banks can tailor their offerings to create a more relevant and satisfying experience. To achieve personalization, banks can use predictive technology and data analytics. By analyzing customer data, banks can anticipate customer needs and proactively offer relevant products and services. For example, if a customer is nearing retirement, the bank can proactively offer investment advice or retirement planning services.

Banks can also use anonymized customer data to identify trends and patterns and develop targeted marketing campaigns. By analyzing customer behavior and preferences, banks can create personalized marketing messages that resonate with specific customer segments. This can help banks increase customer engagement, improve conversion rates, and drive revenue growth.

#5: Solicit and Incorporate Customer Feedback

Customer feedback is a vital tool for banks to identify areas for improvement and ensure that they are meeting customer expectations. By actively seeking and listening to customer feedback, banks can gain valuable insights into their customers' experiences, preferences, and pain points.

To collect open-ended feedback, banks can utilize various channels, such as surveys, social media, and customer support interactions. Surveys can be used to gather quantitative and qualitative data, while social media monitoring can provide real-time insights into customer sentiment. Customer support interactions offer a direct channel for customers to express their concerns and suggestions.

Once feedback is collected, banks should analyze it to identify trends and patterns. This analysis can help banks pinpoint areas where improvements are needed and understand the root causes of customer dissatisfaction. By implementing feedback at key stages of the customer journey, banks can make targeted changes to enhance the overall customer experience. 

Five Simple But Effective Ways

Improving the customer experience in banking is essential for attracting and retaining customers. By following the phases mentioned above and ensuring that no stone goes unturned when it comes to the latest in technology and self-service for customers, banks can create a positive and memorable customer journey.

If you hail from a financial institution and would like a helping hand in improving your banking CX, Omind is your answer. Omind uses the power of automation and AI and lets your visitors engage with your business effortlessly and boost your customer conversion rates. To see how our platform works, schedule a demo today.