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Within today’s connected, digital environment, bank executives realize that customer satisfaction standards must stack up not only to those of other firms providing financial services, but also with non-industry businesses that consistently keep consumers engaged, satisfied, and loyal. These days, any organization can leverage technology to create new customer delight benchmarks that influence the financial services paradigm and bank customers’ expectations.The World Retail Banking Report (WRBR) 2019 from Capgemini and Efma examines the successful customer experience approaches of various innovators and breaks down the challenges faced by retail banks when it comes to customer experience. Our observation is that banks have the right products, but they are lagging behind and giving ground to non-traditional players in the last-mile customer experience.
As popularized in supply chain management and logistics, last mile is what individuals experience and remember. In banking, a positive last-mile experience is the result of personalized product packaging and seamless interactions – connections between processes, internal departments, partners, channels, and product delivery.
Friction in banking interactions and less-than-robust omnichannel solutions drag user satisfaction metrics down, according to Capgemini’s Voice of the Customer 2019 survey of more than 8,000 consumers across 20 countries. Meanwhile, BigTechs and challenger banks are capturing the last mile of the banking value chain by swapping the conventional rulebook for offerings designed around customer needs.
Now, more than ever, banks must integrate seamlessly into customers’ lives to meet demands for intuitive convenience. Open banking can help banks to expedite this journey, but our survey finds that most banks have yet to drive open banking initiatives effectively. Before firms can harness the full potential of open banking, legacy stumbling blocks – siloed infrastructure and traditional mindsets – must be overcome.
WRBR 2019 explores mindset shifts that can help banks to clear legacy barriers and leapfrog to an Open X era that will feature a seamless exchange of resources, improved customer experience, and expedited product innovation.
The banks most likely to become Open X leaders will evolve in the coming months as inventive banks – intelligent and open banks ready to effectively collaborate with FinTechs. WRBR 2019 outlines the structured approach banks can take to develop cooperative capabilities across all stages and aspects of partnership. Our survey probed value generation across all collaborative stages to find that banks will need to strengthen critical pillars – People, Finance, Business, and Technology.
Failing to move fast to develop Open X readiness and address last-mile challenges can expose banks to significant threats and market share loss. However, we encourage retail banks to adopt a two-pronged strategy of building digital and collaborative alacrity while optimizing their traditional strongholds to create an unshakeable advantage within the coming Open X era.
