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Why banks are stuck in second gear

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Humanizing the customer experience leads to a more satisfied customer and higher net promoter scores. Yet when it comes to humanizing the customer experience in banking, there is a significant disparity in delivery among organization types, such as large national banks, credit unions and online-only banks. For example, despite recent customer wins and heavy venture capital funding for online-only banks, customers generally rate online-only banks’ performance on key customer experience drivers lower than traditional retail banks and credit unions. This disparity is also seen at the institutional level with some FIs delivering on experiential elements key to the customer experience at almost twice the industry average while others are performing at less than one-third the average.

This research, conducted by American Banker and Monigle, a creative experience agency, explores what drives the best customer experiences in banking. In particular, this report is designed to assist financial institutions in humanizing the customer experience to drive a connection to, and action by, customers.

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Key findings include:

  • While digital tools may be table stakes, ATMs and branches still resonate. How FIs deliver an omnichannel experience is key to an engaging customer experience. 
  • In delivering on the functional benefits customers seek, most FIs earn high scores on safety and trust, but fall short on next level benefits such as rewarding loyalty.
  • How consumers “sense” a brand, from branches to online to community activities, is another key driver in the customer experience and where many FIs struggle.
  • The biggest opportunity for differentiation may reside in the emotional experience dimension, where credit unions and challengers scored well, but large retail banks did not.

Why read this report?
Banking executives are constantly reevaluating investments in both digital and physical channels as they plan for the future. However, as consumer demand has pushed many of these investments, most research models miss the core of what drives customers to choose and stick with a particular financial institution. This report provides a deeper understanding into that relationship and can help executives take meaningful actions to build strong bank-to-customer experiences.

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