Branch Transformation

Banking experience: 3 simple tips to improve

What are some practical tips to improve banking experience? You can measure customer's attitudes, create comfortable spaces and take all your channels into consideration.

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July 25, 2023 by Bradley Cooper — Editor, ATM Marketplace & Food Truck Operator

Financial institutions regularly take blows to their overall reputation, which has in turn impacted their overall banking experience. Silicon Valley Bank collapsed after a series of bad decisions, which led to depositors rushing to withdraw their cash. Signature Bank soon followed suit, and Credit Suisse, a major Swiss bank, was acquired by UBS following a series of major scandals with spying and money laundering. First Republic also collapsed and was acquired by JPMorgan Chase. All of these events combined have certainly impacted concerned customers.

However, banks have largely kept to their same tactic — issuing marketing campaigns that emphasize security, insurance and other topics. EJ Kritz, EVP of apc, a customer and employee experience consulting firm, said in a LinkedIn post that banks were doing this to give, "customers a sort of security blanket that they think they need."

However, Kritz argues that this doesn't really improve bank's reputations because "it's not about whether banks can get their customers to trust you today. It's about whether they trusted you before SVB. Did they trust you last week? If they didn't, no amount of marketing can take you back in time and retroactively gain customer trust."

The statistics are also beginning to turn against traditional banks. According to data from statista, neobanks scored higher than traditional banks when it came to ethics, reliability and innovation. The only area where banks scored higher was on customer service, with 49% of customers saying banks had good customer service vs. 44% for neobanks

So how do banks win back consumer trust and improve the overall banking experience?

Measure banking experience with customer data

First off, banks need to gather data on who their customers are and what their needs are. This needs to go deeper than just their income, banks need to know what consumers actually want from their banks.

This can take a variety of forms such as:

Surveys on consumer satisfaction.
Information on what features consumers hate/like about their banks.
Studies on how much consumers trust their banks.

These surveys on client experience can also be broken down by the age group. Banks shouldn't just rely on traditionally wealthier demographics, they should also study consumer attitudes among Gen Z and millennials. For example, Gen Z audiences often want an authentic experience, rather than a cookie cutter approach.

Banks need to get a firm grip on what their customers think about them and their banking experience, otherwise they risk losing customers to other competitors, such as neobanks, which are expected to reach a startling $9 trillion by 2027, according to a report by Forbes.

However, banks can compete with neobanks through several tactics, including by adopting branch transformation.

Improve banking experience with comfortable spaces

Banks can transform their traditional branches into comfortable spaces where consumers can come to discuss finances and receive guidance for other banking services.

Customers expect a different branch experience than what they had in the past. They aren't primarily going to bank branches to accomplish basic tasks such as withdrawing or depositing checks and cash. They mainly go into branches to get financial advice. Unfortunately. if banks don't create environments where consumers feel comfortable, they won't come at all.

Many customers feel intimidated walking into a bank branch, so banks need to make adjustments. Some of these include:

Ditch the suite and tie for bank tellers.
Create more open spaces.
Provide coffee or other refreshments.
Renovate branches to be more pleasing to the senses.

In addition, banks should also provide plenty of self-service options for consumers to utilize, such as ATMs and ITMs. It is important to ensure that the customer feels "in charge" of their banking experience.

Take all of your channels into consideration

With the onset of AI, some banks may be tempted to only focus on digital channels. While AI can help banks, such as by improving loan application times or offering a digital assistant to answer customer questions, banks need to consider all of their channels into consideration.

For example, to build a successful digital banking platform, financial institutions need to ensure that customers will have the same standard of service via app, website or in branch. In other words, they need a good omnichannel experience.

An article by Frontiers defines it this way, "An omnichannel strategy is a form of retailing that, by enabling real interaction, allows customers to shop across channels anywhere and at any time, thereby providing them with a unique, complete, and seamless shopping experience that breaks down the barriers between channels."

In order to craft any of these strategies, banks first need to listen to what their customers want.

Listen to what customers say about your banking experience

Kritz pointed out banks still often engage in a top-down communication style, where they only push out messages to customers. Instead, banks should adopt a different stance: active listening.

"Stop posting and start listening," Kritz wrote.

This means banks should take time to check in with customers to see how they are feeling and how they can help. For example, after an event like a major bank collapsing, a bank could send out a survey asking customers for feedback and how the bank can help deliver better customer service.

It can also take a more active social media presence in proactively reach out to customers and resolving complaints. When customers are having an issue with their bank, they want to feel heard and an active social media presence can be just the ticket to solve that issue.

If banks want to keep their customers satisfied and loyal, they need to adopt a customer-centric model that interacts with customers regularly and on their terms. By adopting that model, customers will have a successful experience and will remain loyal.

About Bradley Cooper

Bradley Cooper is the editor of ATM Marketplace and Food Truck Operator. He was previously the editor of Digital Signage Today. His background is in information technology, advertising, and writing.

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