In this digital dispensation, the need for ubiquitous, fast, and convenient banking services has emerged. With more innovative and tech-savvy Gen-Zs and millennials, banks and financial institutions are revisiting the growing demand to revamp their product to avoid getting lost in the moving tide.
In 2021, Nigeria recorded 3.7 billion real-time payments, giving credence to the widespread adoption of financial technology. For banks to navigate the evolving market terrain and stay ahead of the curve, there is a need to develop new products that serve customers’ needs, increase delivery channels, and deliver exceptional customer experience.
Let’s take a glimpse at each of these:
Product Development
Products are the services banks offer their customers to satisfy them. These services include savings accounts, current accounts, mortgages, personal loans, and more. Originally, most banks offered only savings options, but with time, an alarming number added a loan payment to their services.
In retail banking, products will continue to evolve due to varying factors, such as new technology, exchange rates, and customer demands. As product demand dwindles, finding a suitable replacement is the next necessary action. Banks must continually innovate to arrive at new products that solve customers’ needs. To achieve this, conducting market research is paramount. Through market research, they can refine existing products or create new ones to satisfy customers and make banking easier.
In essence, product development is imperative, but without swift and functional delivery channels, product delivery will be time-consuming.
Delivery Channels
Today, banks have transitioned from the traditional method of banking to an inclusive digitalized method. From automated teller machines (ATM), mobile apps, and point of sales, to field officers, countless channels abound.
Imagine a customer applying for a loan online or making transactions without queuing in the banking hall. That is the desire of all customers. Banks should create good omni-channels where customers can access and manage their accounts with robust security measures and interactive user interfaces. By adopting an omnichannel delivery approach, they establish trust and build loyalty. With diverse banking options, customers can enjoy their transactions and continue to bank with these institutions. In this vein, banks who adopt this approach stand a chance of retaining their customers and gaining loyalty.
Customer Experience
The customer is the heart of retail banking. Every customer wants the best experience without any friction. For banks that are stuck with outdated methods and practices, they are at risk of losing a high number of customers.
This is why banks should adopt a customer-centric approach by creating personalized support through the use of artificial intelligence. AI has revolutionized the standard operations of diverse fields and the banking industry is no exception. Banks can leverage AI and chat bots to respond swiftly to customers’ demands and questions.
Good customer service requires excellent interpersonal skills. Bank staff should undergo customer service training to acquaint themselves with customer relations and diverse ways to navigate complaints. Financial matters are crucial to deal with, so banks need to treat customers with utmost priority.
In essence, banks should prioritize product development, delivery channels, and customer experience. By embracing innovation and adopting a customer-centric approach, they can provide exceptional customer service.
