# Are financial institutions making the most out of their customer experience? Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2017-11-10 Category: FINANCE Category URL: https://financedigest.com/category/finance Meta Title: Digital Transformation in Financial Institutions Meta Description: Discover how digital tools are reshaping the way financial institutions interact with customers and the impact on customer loyalty and service quality. URL: https://financedigest.com/are-financial-institutions-making-the-most-out-of-their-customer-experiencehtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/fd101117-5-1736843272268-compressed.jpg) _**Bjoern Ekner**, Senior Director at Jabra_ Digitalization has changed the way businesses operate, and not surprisingly, financial institutions are at the forefront of this revolution. If back in the days, advisors would know the customer personally, including their financial position, today mortgages and loans are issued without any face-to-face contact. This transformation completely changed the nature of the old trusted relationship between customer and [financial institutions](https://www.financedigest.com/how-can-financial-institutions-make-the-most-of-data-for-their-business.html "HOW CAN FINANCIAL INSTITUTIONS MAKE THE MOST OF DATA FOR THEIR BUSINESS?  "). Long gone are the days when people would [lose valuable time to meet their advisor in person at their bank’s](https://www.financedigest.com/u-s-european-banks-could-lose-over-5-billion-from-risky-buyout-loans.html "U.S., European banks could lose over billion from risky buyout loans") local high street office. Nowadays, customers want to [bank on-demand and complete most of the transactions within a few taps on their mobile](https://www.financedigest.com/why-you-should-use-a-mobile-banking-app-and-how-to-make-the-most-of-it.html "Why You Should Use a Mobile Banking App – and How to Make the Most of It") screen. This move to the online world, puts the customer in the driver’s seat, as they are typically better informed about the company, and the product and services they offer. These factors have been [putting extra pressure](https://www.financedigest.com/analysis-war-in-ukraine-puts-pressure-on-east-european-banks-to-prop-up-sinking-currencies.html "Analysis-War in Ukraine puts pressure on East European banks to prop up sinking currencies") on advisors to provide quick, knowledgeable answers every time there is a direct contact with the company. **The other side of the coin** The [digital](https://www.financedigest.com/the-four-benefits-of-digital-transformation-in-the-finance-industry.html "The Four Benefits of Digital Transformation in the Finance Industry") advancements in the financial sector are nothing new. In reality, the [transformation has been occurring for some years](https://www.financedigest.com/signal-transformer-market-one-the-most-booming-industry-in-upcoming-years-due-to-global-demand-in-industry-by-2027.html "Signal Transformer Market| One the Most Booming Industry in Upcoming Years Due to Global Demand in Industry by 2027") now. However, many companies are still ignoring or overlooking a crucial piece of the puzzle – the impact these [digital tools have on the service](https://www.financedigest.com/the-digital-first-world-financial-services-predictions-for-2022.html "The digital-first world: financial services predictions for 2022") they provide to their customers, with conversations growing in complexity. Professional services consultancy PwC [\[1\]](#_ftn1), predicts that a customer-centric business model will become key for banking institutions, as bank executives progressively recognise the significance of this approach. This model requires financial institutions to understand the customer expectations and [pain points to act](https://www.financedigest.com/factbox-governments-act-to-ease-inflation-pain.html "Factbox-Governments act to ease inflation pain") accordingly. The [power has irrecoverably switched in favour of the customer](https://www.financedigest.com/ai-will-power-95-of-customer-interactions-by-2025.html "AI will power 95% of customer interactions by 2025") and loyalty has to be established by offering a superior customer experience, to avoid a negative impact on the business. **Putting the right strategies in place** Losing customers is something businesses cannot afford, particularly in the financial [industry](https://www.financedigest.com/how-to-drive-a-data-culture-in-the-finance-industry.html "How to drive a data culture in the finance industry") where clients are constantly being bombarded with new and catchier marketing and advertising messages. Therefore, at a time when a customer decides to call an advisor, there needs to be a reassurance that the query is being dealt with in the most effective way. According to a study from Jabra [\[2\]](#_ftn2), 89% of customers will leave for a competitor after a negative customer experience – 55% of those surveyed also revealed that they would change their mind about making a purchase because of poor customer service. These numbers prove that while it was suggested that technology would make calls to financial advisors obsolete, the reality is that today complex interactions are mostly made over the phone. The issue is that, while conversations are increasingly becoming more strategic and complex than ever, financial advisors working in contact centre environments are more distracted and with less time to prepare and be concentrated during a call. According to a recent study by Jabra [\[3\]](#_ftn3), 69% of the interviewed profiles that talked to customers daily over the phone complained that noise and distractions in their workspace had a negative impact on their performance. This will end up in bigger hold times, lengthier searches for information and slower resolution times – something time [poor customers](https://www.financedigest.com/insurers-ready-to-fight-back-against-poor-customer-experience.html "Insurers ready to fight back against poor customer experience") cannot afford these days. Yet, distractions in the workplace have been common, financial institutions [need to question themselves if they’re organising their customer services](https://www.financedigest.com/financial-services-need-a-digital-transformation.html "Financial services need a digital transformation") in the best possible way. There are some ways of [improving productivity](https://www.financedigest.com/demand-for-meatless-products-and-vegetable-proteins-is-expected-to-improve-nutritional-yeast-market-sale.html "Demand For Meatless Products And Vegetable Proteins Is Expected To Improve Nutritional Yeast Market Sale") amongst advisors: - _Workspace size_. The most productive advisors have a larger workspace that will allow them to move around whilst helping their clients. - _Work flow_. Music can be a decisive [factor for those who need to concentrate when doing complex researches](https://www.financedigest.com/stretch-marks-treatment-market-insights-new-innovations-research-and-growth-factor-till-2025.html "Stretch Marks Treatment Market Insights, New Innovations, Research and Growth Factor till 2025"). - _Supportive culture_. An office culture that helps eliminating distractions, and increasing job engagement and satisfaction. - _Technology_. Wireless headsets can power productivity when compared with corded ones. Increasing mobility allow advisors to reach out for information from specialist colleagues to solve complex [issues during a call](https://www.financedigest.com/uk-issues-call-to-arms-for-omicron-booster-drive.html "UK issues call to arms for Omicron booster drive") To be successful, [companies need to invest in providing workers](https://www.financedigest.com/factbox-what-european-companies-are-doing-as-workers-face-high-inflation.html "Factbox-What European companies are doing as workers face high inflation") the best environment, culture and tools to help them concentrate so they can deliver first-rate service over the phone. It is crucial that organisations in such a fierce [market as banking](https://www.financedigest.com/the-stem-cell-banking-market-to-keep-up-the-digitized-momentum.html "The Stem Cell Banking Market to keep up the digitized momentum"), acknowledge the importance of coordinating the customer service under the right strategic leadership – investing in the right supportive technology and office changes that eradicate distractions, driving greater productivity. [\[1\]](#_ftnref1) Retail Banking 2020 – evolution or revolution?, 2014 [https://www.pwc.com/gx/en/banking-capital-markets/banking-2020/assets/pwc-retail-banking-2020-evolution-or-revolution.pdf](https://www.pwc.com/gx/en/banking-capital-markets/banking-2020/assets/pwc-retail-banking-2020-evolution-or-revolution.pdf) [\[2\]](#_ftnref2) Unlocking the Power of Conversation: Customer Service Challenges, 2016 [https://blog.jabra.com/downloads/](https://blog.jabra.com/downloads/) [\[3\]](#_ftnref3) Jabra Call Centric Study Q3, 2017 --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---