Ways Retail Banking can Enhance Customer Experience

Banking CIO Outlook | Monday, January 03, 2022

Retail banking aspires to be a one-stop-shop for as many financial services as feasible for individual retail customers.

Fremont, CA: The focus in retail banking, like in conventional brick-and-mortar retail, is on the individual customer. Effective internal communication will become increasingly important as the retail banking industry matures, especially as customer experience becomes a crucial differentiator for client loyalty across all retail sectors.

Retail banking aspires to be a one-stop-shop for as many financial services as feasible for individual retail customers. Checking accounts, personal loans, savings accounts, lines of credit, mortgages, debit cards, and credit cards are among the essential services consumers expect from retail banks. Financial representatives offer customer support, financial advice and are the point of contact for underwriting applications for credit-approved goods through local branch locations. As these banks increase their services, employees who provide these services must be well-informed and capable of responding to any client inquiries or concerns to deliver a positive customer experience.

However, new customer service standards must be devised and conveyed to succeed in the new world of retail banking. Retail banks have historically competed on factors including distribution, achieving economies of scale, and brand and infrastructure investments. As a result, in retail banking markets, institutions operate similarly efficiently. The retail banking business model, on the other hand, will have to change. The majority of financial institutions have lagged behind other consumer and service industries in customer experience. Furthermore, few companies stand out for innovation in customer engagement models or branch forms, and most marketing efforts get geared toward brand promotion. Today, rather than protecting them against rival banks, this is more likely to stifle progress.

In other words, retail banking must catch up to customer expectations and demands. However, to improve the customer experience, their physical footprints must evolve and adapt, and they must encourage customers to visit certain areas. Consumers want interactions with retail banks to be straightforward, intuitive, and seamlessly integrated across physical and digital touchpoints, based on their current experiences with new retail shopping models. Bank colleagues must be connected and educated on all communications and programs given at all levels to be effective. Communication is essential, as is responsibility and compliance.


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