Both traditional and challenger banks are falling short of customer expectations when it comes to costs and waiting times, despite the many innovations to have emerged from the Open Banking framework.
The TTi Global Research Customer Satisfaction Benchmarking Report on the banking and insurance sectors found that resolving current account problems and an inability to justify the value of a premium account were the main customer bugbears.
Call centre waiting times were an issue for several respondents who believe that the introduction of interactive voice response by banks was nothing more than queue management.
As Open Banking legislation continues to pave the way for fintechs and disruptors to challenge the services provided by legacy banks and financial institutions, getting the customer experience element right is crucial.
The rise of challenger banks in particular has resulted in a fiercely competitive financial sector and this report highlights that, currently, loyal customers feel their loyalty goes unrewarded. This, researchers found is causing brand damage and having an impact on customer retention and referrals.
“Creating a fast, frictionless customer experience is highly desirable and critical for generating customer loyalty,” said Glyn Luckett, commercial director at TTi Global Research.
“While many banking and insurance companies have introduced online chat and self-service transactions to support this, customers still expect to be able to speak to a customer agent quickly if they encounter a problem or want to swap from digital to human interaction.”
Mr Luckett said that his company’s research shows the importance for banks to “evolve” from that they currently offer to meet the higher expectations of customers.
“Perhaps a shining light in all this is that our survey showed that the change in customer feeling is not significant,” he added.
“Small but impactful improvements to core customer processes and staff training will ensure a consistent customer experience.”