Differentiating at the right journey touchpoints is the key to value creation
Account set up
Banking
Relationship management
Most brands can differentiate during this stage by improving staff support and instilling reliability
Q1 – Was the account setting up process efficient and hassle-free?
Voice of Customer insights
There is a notable disparity in how customers have rated brands on staff support and their reliability, presenting a significant opportunity for differentiation in the market
- There is a growing demand for self-service solutions that allow customers to manage their accounts, perform transactions, and access support without the need to interact with a bank representative
The CX leader has distinguished itself in the account setup phase, excelling in the verification process, documentation, and the simplicity of the application procedure
Another parameter on which brands can differentiate is ease of putting in guarantor or co-owner of a loan
Poor service quality at branch is driving customers towards self/ e-services, hence there is a need for the platforms to be simple and efficient
Q2 - Was my banking experience good/ bad vs expected?
Voice of Customer insights
The performance of the segment is above-average across parameters with potential for differentiation across service quality and professionalism of the staff
A moderate variance in customer ratings was observed across ease of transaction and availing e-services. Hence, customers are not facing major inconveniences across platforms.
- Elderly population still struggle with online services. Hence, the e-offerings should be made user friendly for across age groups
- The younger population have voiced their need for further functionalities being made available to the existing online services
Customers feel that account closure or relocation, and actioning on feedback given can be significantly improved upon
Q3 – Is it convenient for me to regularly assess and avail new banking services?
Voice of Customer insights
Most brands have achieved high ratings on the quality of resolution provided.
However, customers are encountering considerable difficulties when trying to close their accounts, banks should segment their customers into categories that warrant either a more rigorous process or a simplified, hassle-free account closure.
Another challenge customers face is the lack of responsiveness to their feedback, creating a perception that banks invest significantly more effort in account setup compared to relationship management.
- It signals to customers that their opinions and concerns are not valued, reducing customer loyalty.
- Unaddressed feedback often results in repeated issues, causing customer frustration.
Striking the right balance between delighting the customer and the cost of servicing them is key to maximising value
Performance of the segment on the prioritised experience attributes
Banking is moving towards non-traditional platforms –
- Financial services are being seamlessly integrated into non-banking platforms, such as e-commerce, telecom, and social media, for convenience.
Increasing adoption of technology across financial services to enhance customer experience -
- Banks are leveraging AI and data analytics to offer tailored financial solutions, anticipating customer needs and preferences.
- Enhanced digital accessibility across platforms and mobile banking, catering to diverse demographics.
- Generative AI is being used to restore the human touch in digital banking support.
Protecting the customers is still a key focus
- Banks are focusing on educating customers about financial health and offering tools for better money management.
- Advanced fraud detection systems and biometric authentication are being implemented to ensure customer data protection.
Banks are witnessing 43 percent switchers seeking reliable customer support and transparent, trusted operations
Customer segmentation based on satisfaction and loyalty
(percentage share of respondents)
Customer retention is dependent on their satisfaction with the brand and their tendency to explore alternatives. ‘Ambassador’ are highly satisfied customers who will keep contributing to the brand’s success. ‘Switchers’ on the other hand, are always seeking better options. ‘Critics’ as the third segment, actively convey negative feedback about the brand, if not satisfied. Finally, ‘Dependents’ are customers who remain loyal despite low satisfaction due to lack of alternatives in the market.
96 percent of the customers are extremely satisfied with their current brand
Ambassadors and switchers alike are influenced by common attributes, such as:
- Customers are likely to switch banks if they feel they are not receiving good value for their money, citing reasons like high charges for basic services or inadequate benefits.
- When customers perceive a bank as untrustworthy due to hidden fees, unethical practices, or a lack of transparency in communication, customers are inclined to switch to a bank that upholds integrity.
- Unresponsive, unhelpful, or unfriendly customer service can cause frustration and dissatisfaction, prompting customers to explore alternative banking options.
The ability of the segment to perform on CX requirements is 80/100 , with a focus on ‘Integrity’ and ‘Expectation’ pillar
Performance across the KPMG Six pillars of Customer Experience (Weightage of the pillar to the overall experience requirement)
‘Integrity’ (21 percent) and ‘Expectation’ (20 percent) are the key pillars of experience while making a purchase decision
Banks can ensure ‘Integrity’ in their operations by -
- Adhering to all regulatory requirements and industry standards
- Implementing strong cybersecurity protocols to protect customer data and prevent fraud
- Establishing rigorous quality control measures to ensure the accuracy and reliability of financial transactions
- Engaging third-party auditors and independent oversight bodies to review and validate the bank's operations
Banks can meet customer expectations by -
- Providing personalised banking solutions, responsive customer service, and easy access to banking services
- Regularly update systems, processes, and training programs to stay ahead of emerging trends and challenges
Biggest gap in fulfilment has been observed across ‘Resolution’ pillars
The segment is driving profitability from its loyal customers, with high willingness to pay and customer support
Top experience attributes influencing the customer’s willingness to pay
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Complete delivery on brand promise
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Bank is well known and preferred amongst social circle
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Quality and responsiveness of customer service
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Detailed service information and clear communication
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Convenient and guaranteed bank related deliveries
An individual’s willingness to pay a premium is driven by immediate needs. As today’s customer evolves, the focal aspects of premiumisation has shifted from functionality to experience. These aspect may translate as personalised convenience, omnichannel browsing or even exclusivity in customer support.
Delivering on customer expectations in operational performance is essential for banks to influence profitability.
- 25 percent of customers seek assurance that their bank will consistently deliver on promises, whether it's competitive interest rates, low fees, or timely and accurate financial services
- 24 percent of the customers appreciate prompt, courteous, and knowledgeable assistance, whether it's resolving issues, providing financial advice, or handling transactions efficiently
Transparency of information drives customers' readiness to pay.
- For 24 percent of the customers, social proof plays a significant role in financial decisions. A well-known and respected bank that is favored by one's social circle garners trust and credibility.
- While 22 percent of the customers value clear, honest, and straightforward communication regarding fees, policies, and charges.
Our customer experience (CX) insights across sectors
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