The crisis will push banks to copy the best digital servicesJuly 2020
Simplicity and efficiency rule the business world, and in the service economy this is doubly true. The more complicated and complex life is, the more people demand maximum user friendliness from their service providers. This usually means a laser sharp focus on removing obstacles and smoothing the user experience. Unfortunately, most banks are still not doing enough in this area, and banking is still too complicated and often unfriendly. Obviously, this is a bad situation for users and hurts the reputation of the financial institutions themselves.
According to a number of experts, the coronavirus crisis has brought about an overall acceleration of digitization, and the various measures to prevent the spread of coronavirus have taught people to use digital services more often and to expect more when they do. As this trend continues, people have become even more aware of the added value of simple and user-friendly applications that allow the use of so-called “one-click” fulfilment and have noticed which sectors often fall short of today’s standards.
Uber, Spotify and Zoom are benchmarks of great digital service
If we look at the most popular services, the one feature they all have in common is simplicity. Whether we’re talking about ordering rides with Uber, shopping at Amazon, launching video conferences using Zoom, playing music on Spotify or watching Netflix, all of these services score points by making their product available to the user almost instantly, with very few barriers, and all with only a few clicks. Logically, people want and expect the same from banks.
“It is important for banks to realize that in order to have a satisfied client, it is not enough to beat their direct competition, but to match the user experience of the services that people like best and whose simplicity has set the standard for user friendliness,” comments Čeněk Navrátil from BSC, which has long been dedicated to the digitization of banking services.
But the key is not just simplifying one part of client service. It is essential that every stage of the user’s customer journey is as simple and user-friendly as possible and that all obstacles have been completely removed.
Retaining an existing customer is five times cheaper than finding a new one
According to studies, it is about five times more expensive to acquire a new customer than to keep an existing one, so investing in long-term user satisfaction is definitely worth it. This has been confirmed by other numbers as well. According to consultants from the analytical company Siegel + Gale, people are willing to pay 55% more money for a simpler service and there is a 64% higher chance of them recommending it to their friends.
“Last year’s KPMG survey showed that the banks that had the most success in customer satisfaction were primarily those that cared about their client’s user experience and provided smooth and hassle-free access to their services. To this end, it is essential that banks are able to provide services and communicate with clients across all channels, with mobile banking being absolutely key. Digitizing services today is truly the alpha and omega of success. Banks must realize that the coronavirus has opened people’s eyes and the competition in the field of digital services is huge, “adds Čeněk Navrátil, who bases his claim on BSC’s 30 years of experience with the digital transformation of banks.