Everyone’s situation is their own. Banks that cater to this basic tenet of human existence register sales traction and growth. Those that do not, wither. As Financial Institutions increasingly invest in favor low-cost automated and self-directed service, the level of personalized attention consumers receive in branches is harder to generate.
The personal relationship customers once held with their banking provider has been reduced even further through the rise of digital banking. While a seamless digital experience is vital for a modern financial institution, consumers still appreciate that human touch, and it remains key to forming meaningful relationships and building loyalty. This presents an opportunity for those banks and credit unions that can strike the right balance between delivering great digital experiences and being a trusted advisor again. For this to occur, retail institutions need to shift from product-based, transactional focus, to a model that is more customer centric.
Mercator Advisory Group agrees that banks will increasingly need to bring a wider portfolio of customizable products to bear in order to fit the particular needs of each individual client. Broad appeal products and service levels meant to apply the widest population segments will need to be forsaken in favor flexibility and modularity in product construction and payment. While this may run up against the functionality of long-standing core banking systems, incumbents should keep in mind that there is a whole nation of fintech operators that are willing to encourage clients to “have it their way”.
Overview by Joseph Walent, Associate Director, Customer Interaction Advisory Service at Mercator Advisory Group
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