Customer experience is an extremely important barometer of performance in the retail banking industry.
It’s something financial institutions (FIs) are always striving to improve, for fairly obvious reasons. Customers who have a positive experience are more likely not only to stay with their bank, but to recommend it to others.
A recent report published by Computer Services, Inc suggested that this year, customer experience will be a key priority for many FIs.
There has also been research suggesting that the growth of the fintech scene is having a big impact on how all providers approach customer experience.
In its latest Ratings Report, research-based charity the Fairbanking Foundation stated that fintech innovators have “set a new standard” in the emphasis they place on customer control and experience in their products.
Over the last three years, the organization has recorded a 57 percent rise in ratings for current and savings accounts. The ratings reflect how effectively these products promote financial wellbeing and consumer control.
In the 2017 study, almost all current accounts analyzed provided alerts to inform customers when their balance was approaching the overdraft limit. Almost half of savings accounts allowed people to set individual savings goals.
Antony Elliott, chief executive of the Fairbanking Foundation, said there has been a “dramatic shift” in how providers of all sizes approach the issue of financial wellbeing.
“Fintech has managed to bring many in the sector around to focus on the needs of customers,” he added. “It’s time now for all providers to join the party and use the momentum behind this positive change for the good of their customers.”
With fintechs and challenger banks likely to play an increasingly significant role in the financial services industry, the changing needs and expectations of consumers will be at the heart of how the sector develops over the coming years.