“Why must banks humanize to attract new customers?” This was the central question addressed by Renato Oliveira, ebankIT’s CEO & Founder, in a recent interview for the Fintech Times Money 2020 Supplement. The answer relies on the emergence of a new generation of banking customers. Millennials and Generation Z are demanding a different digital banking experience, increasingly efficient, intuitive, and personalized, and if they do not find it in banks and credit unions, they will simply look for other alternatives.
Banks and Credit Unions must exceed customers' expectations. And they are constantly changing.
The financial sector is experiencing a once-in-generation transformation. Millennials and Generation Z are demanding a different digital banking experience, creating a wave of change that will sweep away banks that are unprepared. If digitally savvy users are unable to get the services they require, at the speed they need, they will simply log off and switch to a neobank.
Digital natives were raised on smartphones, are constantly connected, and live their lives online. They are accustomed to efficient, personalized services and expect the same intuitive service from the banking industry that they receive from Netflix or Uber. They will not tolerate legacy banking practices and time-consuming, paper-based processes associated with the old world of branches. Customers now expect onboarding to be simple and friction-free, making it as easy to open a bank account as it is to start a social media profile.
Yet an efficient experience is not enough. Customers want to be treated as an individual by a bank that really knows them. Therefore, institutions need to master the art of fostering relationships. Digital banking does not have to feel emotionless. By humanizing their services, institutions can meet this growing demand for a warmer, more personalized experience.
The Human Touch
Ultimately, personalization is key to humanizing experiences. When real-world behavioral data and digital analytics are embedded into the digital journey, banks can provide the right services to the right consumers, at the right time, through the right channels to drive greater conversion rates, higher customer satisfaction, and better brand reputation.
Here are three ways banks can deliver humanized services that address the new wave of banking customers:1. Create seamless, simple, intuitive digital self-service
Financial institutions can enhance the digital experience by giving customers access to real-life interactions via technologies such as messaging applications, dedicated direct connect buttons, video, and front-end chat. Voice AI, chatbots, and other technology can handle simple interactions, but customers must be able to talk to a human quickly whenever they need to.
2. Be flexible - let them choose the channels they prefer
To address customers’ complicated financial needs, banks must implement an omnichannel approach that seamlessly incorporates digital and physical channels. The objective should be to make the functionalities of physical branches available online and back up digital services with human support so banks can meet all their customers’ needs.
3. Let the data map the journey
Banks should carefully examine what pages visitors view and the content they engage with. Every journey should be assessed to find and eliminate points of friction. Digital journeys should be personalized to each and every customer.
Enabling Customer Engagement
ebankIT enables banks to deliver humanized, personalized, and accessible experiences for their customers. We developed the User Engagement Hub to give financial institutions a private and exclusive communication channel with their customers, enabling them to leverage the power of humanization. Banks can use the Hub to give their customers the ability to rate their app experience, test new features, and give instant feedback if the app crashes or they have another problem.
Our technology lets banks listen to their customers. Crucially, it makes those customers feel heard. This two-way conversation is the essence of a humanized experience - which is the best way to win the hearts (and loyalty) of customers as we enter this new era of digital banking.