Elevating Digital Banking Customer Experience: The Outside-In Approach

Let’s Take A Scenario: Exploring Customer Experience Challenges in Banking Industry

Annie, a valued customer of Bank X, found herself facing a predicament. After relocating to a new country, she needed to update her contact details with the bank. However, the challenge lay in the long wait times and her increasingly busy schedule, which made it nearly impossible for her to get through to the bank.

As a consequence, every month, like clockwork, letters and updates from the bank were still being delivered to her old address. The result? A frustrating and bewildering gap in communication between Annie and her bank, left her with no option but to close her account with Bank X.

In this tale of customer discontent, Annie’s quest for a better banking experience led her to the enticing embrace of Bank Y. This forward-thinking institution lured her in with attractive customer onboarding offers, and Annie, seeking a more efficient and responsive financial partner, took the plunge. Her decision to make the switch underscores the importance of timely and customer-centric service in the fiercely competitive world of banking.

It’s a vivid reminder that in the business landscape, customer experience reigns supreme, and customers like Annie are increasingly seeking institutions that not only value their business but also cater to their evolving needs with grace and efficiency.

Here, the lack of effective customer experience management was the primary reason for Annie’s dissatisfaction and her eventual switch to Bank Y. It highlights the significance of prioritizing customer experience in retaining customers and fostering brand loyalty.

Customer-Centric Banking: The Outside-In Approach

The outside-in approach is a fundamental shift in the banking industry, one that places the customer at the heart of every decision. This customer-centric philosophy calls upon banks to break away from the traditional, internally focused mindset. Rather than designing solutions based solely on what the bank can offer or industry standards, it challenges institutions to see the world through their customers’ eyes. It requires a deep understanding of customer needs, preferences, and the challenges they face.

Though improving digital banking customer experience has been a major goal for several years, banks still face challenges when it comes to delivering timely communications. As the banking industry is information intensive, delivering complex communications in the form of documents, statements, policies, letters, notifications, & correspondence is a major challenge. But with the proliferation of new communication channels like web, mobile, email, SMS, etc., the ability to deliver relevant and consistent communications has become tough.

Customers these days are less loyal and more nomadic when making a purchase. They demand seamless & contextual customer onboarding experiences that are secure and immediate. They want their service providers to have a consolidated view of their transaction details with them.

Disjointed communication efforts may leave your customer experience in a pothole where the customers might have the impression that you are approaching them just for cross-selling and up-selling new offerings rather than understanding their actual requirements. Thus, banks must start reviving their communication strategies by focusing on a more outside-in approach and understanding their customer requirement at the same time.

Under this approach, a bank rather than pushing their products and services tries to understand the customer pain points and deliver services based on their customer needs.

Top 3 Hurdles Banks Face While Shifting To An Outside-In Approach

1. Disintegrated Customer Experience Management Silos

Identifying the basic hurdle is one of the biggest challenges for banks these days. As banks must service customers via different channels, they have over time created multiple applications which work in silos. As a result, these applications are not synchronized which ultimately affects customer experience management.

What becomes more challenging is the lack of a centralized communications strategy that bogs down the capability of banks to deliver consistency across channels. All this results in disjointed customer communication efforts that are not personalized and a threat to your outside in-customer communications approach.

2. Incompatible Customer Data Touchpoints

The second hurdle banks face is in accessing customers’ data from different sources. Banks have been facing challenges when it comes to mapping customers’ data to their current needs. Banks must understand the buying behavior of their customers at each level by mapping the customer’s journey through different tools.

The traditional banking strategy used to revolve around the inside–out approach where the customers used to opt for the only services that were provided by the bank. But, with the market being driven by customers, the power is now in the hands of customers. By adopting an outside-in approach banks can cater to customer experiences more proactively.

3. Rigid Customer Experience Management Systems

The lack of agile technology is one of the major hurdles banks face while adopting an outside-in approach. This often happens due to the outdated or legacy platforms that hold back the organizations from innovating. To achieve consistency and innovation in customer communication efforts, it becomes necessary for banks to adopt legacy modernization that enhances their capability to deliver communications on multiple channels in a robust way.

Digital Banking Customer Experience: Key Strategies

Digital banking has become an integral part of our lives now. With the ever-increasing competition in the financial industry, it’s not just about providing services; it’s about delivering an exceptional customer experience.

Elevating digital banking customer experience is no longer optional; it’s a strategic imperative for success. In this blog, we’ll explore the key strategies that can help banks enhance their digital customer experience.

1. Seamless Onboarding

The journey begins when a customer decides to open an account. Making the onboarding process as smooth as possible is critical. From easy online applications to simplified document submission, the first impression matters. An intuitive, step-by-step onboarding process reduces friction and ensures a positive start to the digital banking relationship.

2. Personalization

Digital banking customer experience offers an opportunity for hyper-personalization. By leveraging customer data and behavior, banks can provide tailored recommendations, such as relevant financial products, investment options, or budgeting tools. Personalization enhances engagement and helps customers achieve their financial goals.

3. Security and Trust

Building trust is paramount in the digital banking world. Banks should invest in state-of-the-art security measures to protect customer data and transactions. Communicating these security measures to customers and keeping them informed about their data’s safety is equally important. Trust is the foundation of a strong, lasting relationship.

4. 24/7 Support

Digital banking customers expect round-the-clock support. Whether it’s through chatbots, email, or phone, providing responsive customer support ensures that customers can get assistance whenever they need it. Quick problem resolution and support for technical issues are vital for a positive experience.

5. Streamlined Communication Processes

Streamlining processes in digital banking, such as account management, fund transfers, and bill payments, holds the key to unlocking significant benefits for both customers and the financial institutions that serve them. When customers find it effortless to manage their accounts, move money between accounts, and pay bills, it not only saves them valuable time but also reduces the frustration that can arise from complex, time-consuming processes.

The real magic happens when customers experience a seamless and efficient journey through these tasks. When account management, transfers, and payments are streamlined to the point where they require minimal effort and clicks, it leads to increased customer satisfaction. A streamlined process reflects a bank’s commitment to delivering a hassle-free experience, and this, in turn, fosters loyalty.

Crafting Excellence in Digital Banking Customer Experience