# Coffee, current accounts and the commoditisation conundrum Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2021-07-29 Category: BUSINESS Category URL: https://financedigest.com/category/business Meta Title: The Future of Digital Banking: Keeping Customers Engaged Meta Description: Discover how digital banking and relationship banking are reshaping the financial industry in the UK. Learn about the shift towards fintech companies, the URL: https://financedigest.com/coffee-current-accounts-and-the-commoditisation-conundrumhtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/graphicstock-cropped-image-of-young-bearded-designer-dressed-in-shirt-in-a-cage-workin-sbi-302894339-1736838108554-compressed.jpg) _By **Neil Murphy,** Global VP at ABBYY_ In the last year, consumers have dramatically moved towards online channels, with companies and industries following suit – and the banking industry is no different. Digital and online [banking were already on the rise](https://www.financedigest.com/the-rise-of-the-specialist-bank.html "The rise of the specialist bank") prior to the pandemic, and quickly became a necessity in the last year. With the wide range of benefits available, it’s no surprise why digital banking has become the consumers “preferred choice”. This increased reliance on technology is spurring consumers to move towards [fintech companies and challenger banks for their financial](https://www.financedigest.com/how-can-fintechs-better-engage-zillennials-with-their-financial-health-the-answer-lies-in-speaking-to-them-in-their-own-language.html "How can fintechs better engage Zillennials with their financial health? The answer lies in speaking to them in their own language") needs, leaving traditional banks in the dust. This shift will mean heightened expectations for instant service and seamless [customer experiences](https://www.financedigest.com/the-new-client-adviser-experience-in-the-age-of-the-customer.html "The New Client-Adviser Experience in the Age of the Customer"). Fortunately, this is right up a fintech’s street. These organisations have the advantage of starting with a vision and no legacy and have become experts at reducing friction and delivering an enhanced customer experience – ensuring the customer [remains at the centre of every business](https://www.financedigest.com/iran-open-for-business-but-caution-remains-the-watchword.html "Iran: ‘open for business’ – but caution remains the watchword") decision. [Banks that fail to deliver this seamless customer experience risk losing the trust and loyalty with their customers and may be regarded as a commodity](https://www.financedigest.com/banking-turmoil-will-not-have-knock-on-effect-on-commodities-trafigura-cfo.html "Banking turmoil will not have knock-on effect on commodities -Trafigura CFO") provider. [Banks must withstand the commoditisation trap and build their position of trust while harnessing technology to increase customer engagement](https://www.financedigest.com/how-conversational-commerce-can-help-banks-engage-with-millennials.html "How conversational commerce can help banks engage with Millennials"). [**Return of relationship banking**](https://www.financedigest.com/ogrady-to-return-to-bank-of-ireland-as-ceo-irish-times.html "O’Grady to return to Bank of Ireland as CEO – Irish Times") In this era of tech-savvy consumers, banks need to [keep up with their demands and expectations](https://www.financedigest.com/commerzbank-keeps-outlook-as-lower-q3-profit-still-beats-expectations.html "Commerzbank keeps outlook as lower Q3 profit still beats expectations") or risk being cast aside for a faster alternative. They want their bank to provide them with a digital experience that is more convenient and makes their lives easier. But while customers are increasingly adopting technology, many still place a high [importance on human](https://www.financedigest.com/the-importance-of-strategic-human-resource-management.html "The Importance of Strategic Human Resource Management") contact at their local branch or with their bank advisor by phone. [YouGov](https://yougov.co.uk/topics/finance/articles-reports/2020/01/21/third-brits-dont-use-mobile-banking) found that almost a quarter of Brits still manage their money by popping into their local bank branch. It’s clear, relationship banking is still important, and these [banks will need to balance digitalisation and personal customer](https://www.financedigest.com/christmas-debt-hangovers-how-banks-can-help-customers.html "CHRISTMAS DEBT HANGOVERS: HOW BANKS CAN HELP CUSTOMERS") service. This is why the Dutch [bank ING’s North American arm](https://www.financedigest.com/hsbc-acquires-british-arm-of-stricken-silicon-valley-bank.html "HSBC acquires British arm of stricken Silicon Valley Bank"), Capital One and Lloyds Bank in Manchester transformed their banks into café-style branches. Discussing your [current account](https://www.financedigest.com/euro-zone-current-account-deficit-widens-again-on-large-energy-bill.html "Euro zone current account deficit widens again on large energy bill") over a coffee might appear strange, but more banks are creating spaces where customers will actually _want_ to speak to bankers. In fact, the Dutch Bank created several cafes in the U.S. where [“financial baristas” would serve coffee as they chat with visitors about their financial needs and explain the financial institution’s](https://www.financedigest.com/what-financial-institutions-will-be-like-in-10-years.html "What Financial Institutions Will Be Like In 10 Years") capabilities. In an increasingly saturated industry, it’s no longer about the products and [services banks sell to consumers](https://www.financedigest.com/best-paying-jobs-in-finance-consumer-services.html "Best Paying Jobs in Finance Consumer Services"), it about creating a unique experience within them, while improving any poor customer experiences that are rooted in processes and technology. [Banks should work](https://www.financedigest.com/working-with-banks-essential-tips-for-fintechstartups.html "Working with banks – essential tips for fintechstartups") to understand what success looks like from a customer perspective and then work backwards to understand current processes and the holistic experience of everyone who is interacting with your product, service, brand, and company. **Keeping up with the customer** No matter which bank you want to do business with, you’ll find that all of them offer very similar services with similar fees – internet banking, mobile banking, loans are just a few examples. As traditional services become a commodity, it has become clearer that having the better customer experience can make all the difference. And even if you provide an exceptional service, if the journey to use that service isn’t great, customers will leave, and your customer acquisition [costs will rise](https://www.financedigest.com/can-cfos-balance-the-books-with-rising-operating-costs.html "Can CFOs balance the books with rising operating costs?"). Therefore, having a smooth process is key for customer retention, onboarding and overall satisfaction. A common approach to streamlining the customer journey is to collaborate with team members and [specialists who work within the organisations process – for](https://www.financedigest.com/the-flexible-working-revolution-is-here-so-why-arent-you-tracking-expenses-on-the-go.html "‘The flexible working revolution is here – so why aren’t you tracking expenses on the go?’") banking, this can include customer acquisition staff, customer service representatives, and anyone who regularly interacts with content-centric tasks – and look for areas of improvement. By working with these team members, who understand the processes, will provide useful insights and information that can help banks. It’s also important to incorporate [technology that can give](https://www.financedigest.com/legislate-raises-3-6m-to-give-startups-smes-the-technology-to-query-and-compare-every-contract.html "Legislate raises .6M to give startups & SMEs the technology to query and compare every contract") you an unbiased look into how processes are working. Process intelligence gives banks the tools to analyse less structured processes, identify opportunities for improvement, and increase both the speed and accuracy of executing processes.When [banks use advanced platforms](https://www.financedigest.com/banking-on-snow-automation-platform-for-success.html "Banking on Snow Automation Platform for Success") that both understand content (including unstructured content such as e-mails, application forms or pay slips) and detect behavioural changes (whether it is customer behaviour or operational behaviour), they can identify factors that delay customer service response times, service delivery and even product innovation, and target them precisely here. **Empower humans with technology** It’s important to remember that the [technology that banks implement should empower](https://www.financedigest.com/cut-evidence-empower-how-technology-can-help-banks-deliver-on-cop27-commitments.html "Cut, evidence, empower: How technology can help banks deliver on COP27 commitments") staff to do their best work, rather than replace them all together. No matter what technology is in place, delivering a great customer experience comes down to the [human touch](https://www.financedigest.com/putting-the-human-touch-back-into-banking-magazine.html "“Putting the human touch back into banking”-Magazine"). Having an overview of the processes means you’re aware of where the process bottlenecks or deviations are occurring. This enables you to revise steps or retrain staff to ensure optimal outcomes occur. Similarly, if certain employees can complete tasks at a higher success rate than others, it’s important to [understand how they’re doing it so it can be duplicated across the team for overall improved workforce productivity](https://www.financedigest.com/understanding-management-theories-and-maximising-productivity.html "Understanding management theories and maximising productivity"). This is where task mining is gaining momentum. Task mining allows businesses to understand how employees complete tasks by recording user interactions, while keeping privacy in mind. It shares similarities with process mining, but it leverages user interaction data instead of [business metrics](https://www.financedigest.com/5-fx-metrics-your-business-should-be-tracking.html "5 FX METRICS YOUR BUSINESS SHOULD BE TRACKING") and log files to analyse processes. The [data you get from your customers can be incredibly effective in building customer experiences](https://www.financedigest.com/allianz-benelux-taps-into-modern-data-management-to-combat-fraud-and-foster-a-positive-customer-experience.html "Allianz Benelux Taps into Modern Data Management to Combat Fraud and Foster a Positive Customer Experience"). Leveraging this [data in a useful way](https://www.financedigest.com/5-simple-ways-to-prevent-a-data-breach-from-putting-your-accountancy-practice-out-of-business.html "5 Simple ways to prevent a data breach from putting your accountancy practice out of business") can lead to big gains for banks and help make insightful and impactful decisions. **The commoditisation conundrum** It is true, that [customers have found online banking](https://www.financedigest.com/uk-banks-and-insurers-told-to-step-up-help-for-struggling-customers.html "UK banks and insurers told to step up help for struggling customers") a convenient solution during the pandemic. This, coupled with [cost savings and improved efficiencies has benefited banks](https://www.financedigest.com/factbox-global-banks-take-axe-to-jobs-as-cost-pressures-mount.html "Factbox-Global banks take axe to jobs as cost pressures mount") which has led to a decline in visits to branches. But when a bank becomes faceless, the trust level will automatically decline. To be successful in the digital age, banks need to meet the rising customer expectations and [keep up with the technology companies](https://www.financedigest.com/in-listening-mode-new-bayer-ceo-keeps-open-mind-on-company-split.html "In listening mode, new Bayer CEO keeps ‘open mind’ on company split") that are becoming more established in the financial sector. Implementing the right technology tools enables banks and [financial organisations](https://www.financedigest.com/cloud-migration-for-financial-services-organisations-whats-the-best-approach.html "Cloud Migration for Financial Services Organisations – What’s the best approach?") to have a 360-degree overview of processes to improve the customer journey. To avoid walking on the path towards the commoditisation trap, banks must adopt solutions with digital intelligence, sustain great customer experience and look towards building loyalty with new and previous customers. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---