© Copyright Acquisition International 2025 - All Rights Reserved.

Article Image - Why Customer Experience is a Key Differentiator in the Banking Industry & How the Industry Is Set to Change for Consumers
Posted 14th June 2022

Why Customer Experience is a Key Differentiator in the Banking Industry & How the Industry Is Set to Change for Consumers

According to a recent study by Gartner, 81% of companies compete mostly on the basis of CX, making strong CX a key competitive differentiator for Banks. Gartner’s research also reveals that the higher a customer’s experience is in terms of quality, the more likely they are to remain loyal to a particular brand or institution - meaning CX has the power to improve customer retention.

Mouse Scroll AnimationScroll to keep reading

Let us help promote your business to a wider following.

Why Customer Experience is a Key Differentiator in the Banking Industry & How the Industry Is Set to Change for Consumers
Banking Customer Experience

By Jon Brooks, Head of Financial Services UK at Sabio Group

Customer Experience, or CX, is fast becoming the competitive differentiator in the banking industry.

Banks – and financial institutions in general – that invest in CX have on average higher rates of recommendation, greater ‘wallet share’ and are more likely to be in a position to cross-sell and up-sell alternative products and services.

According to a recent study by Gartner, 81% of companies compete mostly on the basis of CX, making strong CX a key competitive differentiator for Banks. Gartner’s research also reveals that the higher a customer’s experience is in terms of quality, the more likely they are to remain loyal to a particular brand or institution – meaning CX has the power to improve customer retention.

So, in short, it’s critical that Banks get their CX strategy right.

With CX playing an ever-increasing role in a Bank’s success, what will the banking landscape for consumers look like in the next five years? And what emerging CX trends will we see introduced in that time?

 

Embedded Products & Services within Mobile Apps to Provide Personalised Experiences

Customer ‘self-service’ is one of the fastest growing CX trends across the Banking industry today. With the majority of customers using mobile apps for a vast array of other services (such as shopping, utilities etc) it’s almost an expectation that Banks will offer this service too. The teams and associated expertise that are needed to create, manage and optimise those apps are not difficult for enterprise organisations to manage in-house. Ensuring a personalised in-app experience that supports many customers self-serving within their app will help stronger engagement and adoption.

 

The Evolution of AI

Rather than wait on the phone, customers now have the option to consult AI-enabled chatbots when faced with challenges. These chatbots pull and process information from various sources, such as the Bank’s knowledge-base and CRM customer profiles, to respond to incoming customer service requests. Should a particular request exceed the chatbot’s capabilities, it’s automatically escalated to a live service representative who can help the customer work toward a resolution. Best of all, more and more banking apps are offering chatbot technology as a native functionality, which means customers can quickly resolve issues from anywhere, at any time.

 

The rise of Digitalization

The pandemic and the impending lockdowns limited, and in some instances completely removed, the ability for customers to physically visit their Banks which often resulted in voice channels being swamped with calls. In order to deliver great CX for customers, it became critical for Banks to offer customers’ alternative digital channels as another method of customer service and support. But this is easier said than done. Deploying an integrated omni-channel communication strategy with end-to-end reporting and data is one thing, providing the tools and support for less tech-savvy customers is another challenge Banks have yet to land.

 

Humanization of Digital Interactions

Offering customers a range of channels is a good first step to delivering great CX in Banking. However, while many customers may be comfortable interacting with a ‘bot’, there will be just as many struggling with the lack of humanisation across their interactions with the Bank. This is especially the case when those interactions involve the exchanging of sensitive information or data. Therefore, it’s critical that Banks find ways to soften the use of bots, by giving them personas or personalities and allowing that bot service to be joined up with human assisted service.

 

So, there you have it – the four key trends in CX I expect to see across the banking landscape in the next few years.

What’s clear is that the banking industry is changing and changing rapidly, and CX is a clear differentiator for consumers when choosing who they will continue to bank with.

By not taking CX seriously, some Banking institutions are in danger of falling into the red when it comes to credit among the consumers of tomorrow…

Categories: Finance, News


You Might Also Like
Read Full PostRead - Eye Icon
Leading Drug Education Charities, Angelus and Mentor to Merge
Innovation
29/09/2016Leading Drug Education Charities, Angelus and Mentor to Merge

Angelus is the only UK charity dedicated to raising awareness of the risks from new psychoactive substances (also known as 'legal highs'). Mentor UK is the UK's leading charity working to prevent the misuse of alcohol and drugs among children and young people.

Read Full PostRead - Eye Icon
LinkedIn Outbound Sales Tactics
News
08/04/2024LinkedIn Outbound Sales Tactics

The battle for the customer is never-ending. If your company used to be inbound-only but could use some help, appending outbound sales tactics will infuse fresh ideas into your strategy.   With the slight difference in who initiates the sales process (whe

Read Full PostRead - Eye Icon
AI Can Transform Our Businesses – But Beware of the Legal Pitfalls
Innovation
01/09/2023AI Can Transform Our Businesses – But Beware of the Legal Pitfalls

With artificial intelligence (AI) now firmly part of our everyday lives, businesses harnessing the power of this rapidly advancing technology must consider the legal constraints involved. Ben Travers, specialist intellectual property and technology partner at

Read Full PostRead - Eye Icon
Pavilion Financial Corporation to Acquire Altius Holdings Ltd
Finance
28/06/2016Pavilion Financial Corporation to Acquire Altius Holdings Ltd

Pavilion Financial Corporation (Pavilion), a North American based employee-owned, investment services firm, today announced that it plans to acquire Altius Holdings Ltd., the parent company of Altius Associates Ltd. and Altius Associates (Singapore) Pte. Ltd.

Read Full PostRead - Eye Icon
The Future of Retail: 4 Key Challenges to Watch Out For
News
03/10/2023The Future of Retail: 4 Key Challenges to Watch Out For

The retail industry is facing a tough test in 2023, and there are many signs that it will be another challenging year for many businesses.

Read Full PostRead - Eye Icon
Manufacturing Growth Going Steady
Finance
24/03/2015Manufacturing Growth Going Steady

Activity in the manufacturing sector remained broadly steady in March, according to the CBI's latest Industrial Trends Survey.

Read Full PostRead - Eye Icon
Transforming Corporate Travel with ehotel®: A Global Shift in Efficiency and Innovation
Innovation
06/09/2024Transforming Corporate Travel with ehotel®: A Global Shift in Efficiency and Innovation

In today’s rapidly evolving business landscape, managing corporate travel efficiently while ensuring compliance with ever-changing regulations is more critical than ever.

Read Full PostRead - Eye Icon
The rise of petrol prices and the global impact it has
Finance
23/04/2019The rise of petrol prices and the global impact it has

The average price of a litre of petrol at the end of 2018 was £1.21 in the UK, whereas a decade ago the figure was closer to £0.89 per litre. Price surges are reflective of steep inflation at various historical points, but what does 2019 hold for our empty t

Read Full PostRead - Eye Icon
E2V Technologies surges almost 50% after being acquired by Teledyne
Innovation
31/01/2017E2V Technologies surges almost 50% after being acquired by Teledyne

E2V Technologies, a British technology firm that specializes in the development of radio amplifiers, microprocessors and imaging sensors for the medical technology, aerospace, and military sectors, was acquired by USA-based Teledyne in a takeover deal last wee



Our Trusted Brands

Acquisition International is a flagship brand of AI Global Media. AI Global Media is a B2B enterprise and are committed to creating engaging content allowing businesses to market their services to a larger global audience. We have a number of unique brands, each of which serves a specific industry or region. Each brand covers the latest news in its sector and publishes a digital magazine and newsletter which is read by a global audience.

Arrow