listening247 in the Press
listening247 In the Press
listening247 published in Finance Monthly
According to customer insight and market research collected by artificial intelligence, banks have made several crucial missteps in providing for their customers during the pandemic. Michalis Michael, CEO of listening247, explores these findings and what they mean for the future of banking.
While sectors like healthcare, supermarkets, and logistics will be remembered for their strong response during the coronavirus pandemic, banks are likely to be viewed less favorably. A social intelligence report by listening247 analyzed customer sentiment across the top 11 global banks from February 2018 to April 2020, revealing that customer relationships reached a low point during the peak of COVID-19. In an era where switching providers is easy, banks must learn from the lockdown period and prioritize customer experience more than ever to emerge stronger.
They need to be adaptive
The banks that garnered the most positive sentiment during lockdown were those that swiftly adapted their strategies to align with their customers' actual needs. Unfortunately, these proactive institutions were in the minority. Despite widespread advertising campaigns claiming to be "by your side" and "in this together," many banks fell short of delivering on these promises. In challenging times, it was crucial for banks to show they were truly listening by offering personalized services and products tailored to their customers' specific needs. Going forward, banks must adopt a more customer-centric approach and deliver genuine solutions to address the new and evolving challenges their customers face.
"The banks that received the most positive sentiment during lockdown were those that were reactive and quick to adapt their approach in line with what their customers truly needed."
Digital is king
Our world is increasingly digital, with the pace of disruptive technologies accelerating rapidly. During lockdown, digitalization in the banking sector advanced even faster, as those previously unfamiliar with online banking were forced to adapt while banks scaled back their physical branches and human-led services. Despite this, many banks did little to expedite and optimize their digital processes to manage the surge in online inquiries and applications for government support, such as the Coronavirus Business Interruption Scheme (CBIS). To be better prepared post-pandemic, banks must innovate and fully embrace digitalization, ensuring they can respond swiftly and effectively to emergencies like COVID-19. Digital transformation is essential if they are to remain relevant and capable in the future of lending.
It pays to be efficient
Our analysis of customer sentiment during lockdown revealed that one of the primary frustrations was the lengthy wait times to speak with a customer service adviser, with some customers enduring waits of over four hours. In some cases, banks like Barclays even suspended their customer service functions entirely, exacerbating customer dissatisfaction.
In times of crisis, customers urgently need quick support and effective solutions, making it crucial for banks to focus on improving efficiency to enhance the customer experience going forward. Much of this can be achieved by bolstering digital self-service options and implementing immediate measures to ensure they have the operational capacity to respond swiftly. COVID-19 has demonstrated that automation and data-driven decision-making are vital for managing increased demand for credit and delivering faster resolutions.
They must act in times of need
Although the Government announced in March that banks were required to provide temporary mortgage repayment reprieves to support families facing financial hardship during the crisis, our research indicates that many banks did not follow through. While payment breaks are not a long-term fix for those in financial difficulty and could pose liquidity risks for banks, it’s essential that distressed customers feel they can rely on their bank for additional support. With many consumers likely to consider switching banks post-lockdown, it's crucial for banks to build trust and offer the services that meet customer expectations.
They must adapt their fraud strategies
During lockdown, inconsistencies in handling fraud were a significant concern for customers. Many were alarmed by their bank's lack of response to fraud reports, while some banks, like HSBC, were criticized for being overly cautious by canceling cards unnecessarily.
Proofpoint, a cloud security and compliance specialist, found that 80% of accredited banks could not confirm they were proactively protecting customers from fraudulent emails, and 61% lacked a Domain-based Message Authentication, Reporting, and Conformance (DMARC) record, leaving customers more vulnerable during the pandemic. To restore trust, banks must enhance their fraud detection efforts to address new financial crime risks as digital transactions and electronic payments continue to rise.
Conclusion
To rebuild and maintain customer trust in a post-pandemic world, banks must prioritize efficiency, enhance digital services, and strengthen fraud prevention measures. The challenges highlighted during the lockdown have underscored the need for a more customer-centric approach, where proactive support and security are paramount. By addressing these areas, banks can not only meet the evolving needs of their customers but also position themselves as reliable partners in an increasingly digital and fast-paced financial landscape.
Origal Source: Finance Monthly
