New research from the firm explains that the standard banking model must evolve to encompass enhanced product development, marketing strategies, execution, and ongoing operations to comprehensively cater to evolving customer needs.
TORONTO, June 29, 2023 /PRNewswire/ – Info-Tech Research Group’s new industry resource suggests the already heightened competition in the banking industry is expected to intensify further, which means traditional banks need to prioritize delivering a superior customer experience (CX). With increasing consumer sophistication and the need for technology-driven solutions, many banks are falling short of customer expectations. To effectively compete and meet market demands, banks must prioritize faster technological advancements. Info-Tech’s new industry blueprint, Next-Generation Customer Experience in Retail Banking, advises how banks can address industry challenges, thrive in the competitive landscape, and deliver superior customer experience.
“Most banks are involved in various transformation initiatives, primarily enhancing digital capabilities. When we look at the root issues driving the need for transformation, most can be tied back to the need for a more effective overall customer experience (CX) while engaging with their bank,” says David Tomljenovic, research head of Financial Services at Info-Tech Research Group. “Truly delivering a next-generation CX requires changes throughout the entire organization, which means changes to people, processes, and technology.”
The firm’s research indicates that the rise of innovative products and services is creating an environment of severe competition in the banking sector. To remain competitive, it is no longer sufficient for IT to simply fulfill orders; instead, it must actively seek to understand client requirements and offer significant improvements to business leaders. Such a shift necessitates substantial funding and a team of skilled personnel capable of integrating systems via microservices and APIs.
The lack of comprehensive, critical, insight-providing data sets and the rising tide of non-financial and neo-bank contenders primarily focused on customers disillusioned by their current banking experiences present unique challenges for traditional banks. These obstacles further highlight the need for traditional banks to adopt agile practices and foster a strong partnership between IT and the business so they can adapt to shifting circumstances quickly.
Info-Tech suggests establishing a comprehensive 360-degree understanding of the customer. This approach demands a sturdy foundation based on robust data practices that include data discovery, governance, and management. To succeed in this highly competitive era, the firm recommends in the blueprint that banks prioritize the following key activities:
- Enhance customer experience: Retaining and attracting customers should be a top priority.
- Prioritize human capital: An efficient team is critical to a streamlined process and should not be undervalued.
- Deliver 24/7 real-time service: Clients expect highly adaptable service that is available around the clock.
- Take a true omnichannel approach: Tailoring highly automated services to customer preferences across all channels will help satisfy customer demands.
- Strengthen customer trust: Fostering a long-term customer relationship built on trust and reliability is key to overall success.
- Cultivate full organizational commitment: Banks must align people, processes, and technology to drive innovation and service quality.
According to Info-Tech’s study, the ultimate goal of modernized CX in retail banking is to ensure that, regardless of the channel selected, customer experiences are fast, relevant, and personalized and leave the customer feeling more connected to their bank.
To gain more insights on enhancing CX in the banking sector, download the complete Next-Generation Customer Experience in Retail Banking blueprint.
To request analyst interviews and commentary on the retail banking industry, please contact [email protected].
For more information about Info-Tech Research Group or to access the latest research, visit infotech.com and connect via LinkedIn and Twitter.About Info-Tech Research Group
Info-Tech Research Group is one of the world’s leading information technology research and advisory firms, proudly serving over 30,000 IT professionals. The company produces unbiased and highly relevant research to help CIOs and IT leaders make strategic, timely, and well-informed decisions. For 25 years, Info-Tech has partnered closely with IT teams to provide them with everything they need, from actionable tools to analyst guidance, ensuring they deliver measurable results for their organizations.
Media professionals can register for unrestricted access to research across IT, HR, and software and over 200 IT and industry analysts through the firm’s Media Insiders program. To gain access, contact [email protected].
SOURCE Info-Tech Research Group