# As banks become more digital, customer satisfaction calls for a robust approach
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2018-05-23
Category: BANKING
Category URL: https://financedigest.com/category/banking
Meta Title: How Retail Banks Can Innovate: Insights from Intelenet
Meta Description: Learn how retail banks are embracing digital innovations while maintaining in-person expertise in the face of increasing competition and evolving customer
Tags: featured
Tag URLs: featured (https://financedigest.com/tag/featured)
URL: https://financedigest.com/as-banks-become-more-digital-customer-satisfaction-calls-for-a-robust-approachhtml

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_Puneet Taneja, Head of Operations for Banking, Financial Services and Insurance at_ _Intelenet Global Services_ _, provides insight into how retail banks can couple digital innovations with the appeal of in-person expertise_

Lloyds recently has announced plans to shut 49 branches, while also creating 925 new roles as part of a £3bn investment to adapt to the rising number of customers opting for digital banking. This announcement came against the backdrop of the increasing challenges faced by banks to retain their market share. Not only do they have to comply with changing regulations, but they are also under pressure to navigate the constantly evolving digital landscape while ensuring a seamless customer experience.

Over the past decade, we have witnessed a growing number of digitally agile Fintech players entering the financial market, particularly after the recent launch of the open banking initiative, which has made it a legal requirement for [banks to share their customer’s](https://www.financedigest.com/insight-into-tomorrows-retail-banking-customers.html "INSIGHT INTO TOMORROW’S RETAIL BANKING CUSTOMERS") data. Banks are now being forced to drastically shift their business strategy [as the](https://thefinancialbrand.com/63654/banking-customer-experience-research-survey/) challenge to retain their customer-base intensifies, with an increasing number of customers wanting easy and convenient banking, and on their own terms.

Empowering banks in their struggle against competitors [must involve an end-to-end reimagining of the traditional business](https://www.financedigest.com/a-taxing-issue-ten-tax-invoicing-pitfalls-that-international-businesses-must-avoid.html "A taxing issue: Ten tax invoicing pitfalls that international businesses must avoid") model. To thrive in this environment, [digital adoption](https://www.financedigest.com/why-banks-cant-adopt-digital-identities-fast-enough.html "Why Banks Can’t Adopt Digital Identities Fast Enough") and innovation are key, and the focus needs to be on new solutions for both back-end and customer facing services. It is [essential that banks innovate](https://www.financedigest.com/knowing-your-customers-needs-is-essential-for-banking-innovation.html "KNOWING YOUR CUSTOMERS’ NEEDS IS ESSENTIAL FOR BANKING INNOVATION") their products and services, leveraging emerging technologies such as AI and machine learning. Even expanding their app offerings can enable financial providers to [bridge](https://www.financedigest.com/sas-bridge-financing-keeps-survival-hopes-airborne-shares-climb.html "SAS bridge financing keeps survival hopes airborne, shares climb") the gap between physical and digital.

[Banks and financial institutions can attract and retain customers](https://www.financedigest.com/how-will-the-introduction-of-digital-banking-impact-customer-perception-and-overall-loyalty.html "HOW WILL THE INTRODUCTION OF DIGITAL BANKING IMPACT CUSTOMER PERCEPTION AND OVERALL LOYALTY?") by providing a compelling multi-channel experience across a number of touch points. Expanding service offerings to include self-service options, chat-bots, and telephone [banking will further improve customer satisfaction, by ensuring that clients who don’t have access or struggle with technology will still be able to take part in banking services](https://www.financedigest.com/the-gmp-cell-banking-service-market.html "The GMP Cell Banking Service Market"). The industry can tap into innovations that, for example, recognize keywords when customers [call the bank](https://www.financedigest.com/analysis-powerful-swiss-central-bank-faces-reform-calls-in-wake-of-credit-suisse-rescue.html "Analysis-Powerful Swiss central bank faces reform calls in wake of Credit Suisse rescue"), enabling the bank to decipher the purpose of the call and automatically forward them to the most relevant department – streamlining the customer experience and in turn, saving them time.

In this day and age, the [customer should be at the heart of every business](https://www.financedigest.com/why-late-payments-are-hurting-your-customer-as-well-as-your-business.html "Why late payments are hurting your customer, as well as your business") decision.

However, as banks embrace [online](https://www.financedigest.com/online-banking-benefits-and-risks-of-managing-your-finances-online.html "Online banking: benefits and risks of managing your finances online") and mobile banking applications to suit the requirements of technology-savvy customers, they must not undermine the importance of the physical experience. A recent study found that most customers, including millennials, still prefer having a physical branch nearby [\[1\]](#_ftn1), particularly for major transactions such as choosing and applying for a mortgage.

In the digital age, [customers expect](https://www.financedigest.com/how-omnichannel-cx-can-help-insurers-meet-customer-expectations.html "How omnichannel CX can help insurers meet customer expectations") more self-service options and any-time, anywhere service. [Banks need to think beyond a ‘one-size-fits-all’ strategy to cater to the customer’s](https://www.financedigest.com/the-bank-of-me-why-banks-need-to-be-totally-customer-centric.html "The bank of me – why banks need to be totally customer centric") increasing demand. For customers based in remote areas or in [regions that have been hit by the blow of a recent](https://www.financedigest.com/percutaneous-tibial-neuromodulation-devices-market-analysis-recent-trends-and-regional-growth-forecast-by-2027.html "Percutaneous Tibial Neuromodulation Devices Market Analysis, Recent Trends and Regional Growth Forecast by 2027") branch closure, mobile-based technologies can be used to zroaming advisors, who can then be connected to isolated customers. This can [provide customers with the increased level of service](https://www.financedigest.com/sleep-service-providers-market-report.html "Sleep Service Providers Market Report") they desire, and improve overall customer satisfaction.

#### Additionally, with the support of automation, staff are becoming more empowered to resolve complex issues. This in turn means that branches will not just sustain the banking experience for customers, but will manage to revive it. For instance, one national UK bank used technology to reduce complaints by 25% and customer churn by 12%, by using data analytics to recognize customer needs in advance and resolve issues faster.

The increasing number of [innovative technologies entering the market](https://www.financedigest.com/cloud-professional-services-market-to-be-driven-by-technological-innovation-tmr.html "Cloud Professional Services Market to be Driven by Technological Innovation | TMR") means that now is the best possible time for financial institutions to reposition their focus towards their longer-term growth strategies. Ultimately, financial service providers need to find a way to strike a balance between [online](https://www.financedigest.com/tesco-says-online-services-back-up-after-interference-attempt.html "Tesco says online services back up after interference ‘attempt’") services and the advantages of a high-street network. By embracing the different channels available, it is possible to strike a harmonious balance.

We are in a time of significant change, with [challenger banks](https://www.financedigest.com/the-rise-of-challenger-banks.html "challenger banks") and specialist lenders increasing their gross lending and market share, while many traditional providers are seeing their business stagnate. However, it is not ‘game over’ for banks. They not only have an established customer base to leverage, but can use this [opportunity to create a harmonious balance between the different channels available](https://www.financedigest.com/maximising-the-opportunities-available-from-marketing-technology-and-innovation-focused-thinking.html "Maximising the opportunities available from marketing technology and innovation focused thinking"), to accommodate the needs of all customers and strive for success in the new banking landscape.

#### [**\[1\]**](\#_ftnref1) [https://www.pymnts.com/news/digital-banking/2017/seeking-balance-with-physical-bank-branches-vs-digital-only/](https://www.pymnts.com/news/digital-banking/2017/seeking-balance-with-physical-bank-branches-vs-digital-only/)


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