Challenges to Enhancing Customer Experience in the Era of Virtual Banking

Companies that prioritize customer experience (CX) outperform their competitors in revenue growth. These CX leaders enjoy several advantages, including increased brand preference, customer loyalty, and the ability to command higher prices for their products and services.

In 2022, Forrester conducted a survey to benchmark CX quality at 221 US brands, including 26 banks. They found that 87% of direct banking customers who feel valued plan to stay with their bank. The same percentage is willing to purchase more from the bank, and serve as a positive reference for them. In other words, feeling valued can drive loyalty for financial institutions that, can help retain customers and attract more.

As the world undergoes a rapid digital transformation, the financial industry is witnessing a significant shift toward virtual banking. This evolution presents both challenges and opportunities for improving customer experience. This article will explore the key obstacles in virtual banking and how financial institutions can navigate them to enhance customer satisfaction.

Human Touch In a Digital Landscape

While virtual banking offers convenience and accessibility, it lacks the personal touch of traditional brick-and-mortar banks. Establishing trust and building customer relationships becomes crucial in the absence of face-to-face interactions. Striking the right balance between automation and human assistance is essential to maintain high customer satisfaction.

Forrester’s study revealed that banking customers prefer hybrid experiences. Today many banks are trying to offer a complete digital experience and remove any physical channels like call centers and brick-and-mortar branches. But this might not work in the long run. Data reveals that a hybrid customer experience that combines the power of both digital and physical touch meets customers’ needs much better.

Technological Accessibility

Despite the growing popularity of virtual banking, a significant portion of the population still needs help accessing and utilizing digital platforms. 39% of consumers state banking’s platform UX and functionality as the most important aspect of banking. Financial institutions need to consider the diverse needs of their customers, including those with limited technological literacy or physical disabilities, and provide user-friendly interfaces and comprehensive support to ensure inclusivity.

Security Concerns

With the rise of virtual banking, cybersecurity threats have also increased. Customers worry about the safety of their financial information and the potential for identity theft. 72% of consumers favor security, reliability, and real-time data syncing as essential attributes in virtual banking. Banks must invest in building robust security measures, implementing multi-factor authentication, and educating customers about online safety to mitigate these concerns.

Wrap Up

By addressing concerns related to human touch, technological accessibility, and security, banks can improve their customer experience and build trust. Embracing the power of data analytics and continually improving digital interfaces will further strengthen customer satisfaction in the world of virtual banking.

Financial institutions that embrace technology and prioritize customer-centricity will be better positioned to thrive in this new era of virtual banking.

Posted on July-03-2023