Bank customers are constantly changing their demands and this has placed the banking industry under more pressure to meet such diversity. In addition, the market has become highly competitive and regulations have been tightened. In the current market, it is important to understand customer behavior, their requirements and attitudes because they are vital in formulating effective strategies, operational planning as well as improving daily customer treatment.
1. Customer Segmentation
Categorizing the customers into different segments will help to identify and cater to individualized needs which should be based on the standard banking metrics (number of accounts, frequency of bank interactions, channel preferences, behavior and demographics).
2. Automate your Customer Care
Currently, the millennial customers expect more self-service options at anytime, anywhere. Customer self-service should be expanded such that it handles case management, event-based decision-making and dispute management. Automation of customer services will improve customer care, increase effectiveness and lower operational costs. Nonetheless, banks have to keep on making compelling offers so that they act as incentives for the customer to utilize low cost channels.
3. Offer Multi-Channel Experience
In order to attract and retain customers, banks need to apply unique multi-channel experience in all their utilities like online services, branches, investment advisors, mortgage and so on. There is rapid expansion of technological advancements and this has altered the way banks interact and behave. In fact, virtual channels have become more relevant especially since high speed internet connectivity has become more popular. Most mobile devices are now web enabled and this has allowed consumers to invest more of their time online. This means that customers have become increasingly likely to use a mix of channels as well as non-branch channels to execute more complex banking transactions.
However, retail branches are still the main banking channel even though customer traffic has declines because of they use digital/phone channels more often. As a matter of fact, 55 percent of transactions originate from online banking and call centers. Therefore, banks can view this as a positive development and apply a seamless experience across all channels so that customers can have a variety of capabilities. If this is executed effectively, a bank can increase its profits significantly.
4. Innovate the Design of the Banks’ Branches
Customers should not only be enticed into the bank by withdrawals and deposits because the millennial customers expect somewhere modern and fun that they can go to for their needs. For instance, banks can introduce coffee bars to keep the customers busy as they wait. Such innovative practices can ensure that you have more customers visit the bank branches for their transactional banking needs.
5. Manage Big Data
Capabilities of big data offer banks better understanding of their clients which makes it easier to offer more personalized offers. In this case, the bank can be able to predict the customer needs and resolve them before any problem arises. This means that banks can be timely in solving problems, concise as well as gather actionable insight to the contact center agents.
As a result, the bank can enjoy increased sales, enhanced customer satisfaction and reduced operation costs. In the finance industry, fraud, security breaches and financial crimes are among the most damaging challenges being faced. Big data technologies like NLS Tera Intelligence offer scalable, integrated, secure and cheaper platform to mitigate, prevent and detect external frauds. Some of the benefits of big data are cheaper fraud screening costs and fewer false positives are monitored, reduced fraud investigation costs, reduced payment fraud losses, real time mitigation and fraud detection as well as optimized offers and cross sell.