Retail Banks Must Find a Balance

Mobile banking has risen in popularity as customers needs demand mobile integration and multichannel access to their accounts. An American Banker article shows how “digital channels have become a powerful means of building loyalty” for retail bankers. This however, must be integrated carefully, with useful features that are relevant for customers in a consistent and seamless manner.

The article also suggests that although mobile banking is likely to increase the number of customer referrals, it isn’t safe to assume that it is a quick fix for an increase in customer loyalty. Affluent customers are more likely to seek a more tailored and personal relationship with their banks rather than an impersonal digital relationship. Banks such as Citigold and Axis Bank have proven that “differentiated offerings, personalized service and dedicated centers” attract these customers. With the likelihood that affluent customers will refer their banks to other affluent friends and family, the reason to invest in them only increases.

Therefore the focus on moving customers with routine transactions to mobile banking (which will decrease traffic in the branch and over the phone) will allow more time and money for a focus on a more tailored process of banking for affluent customers. American Banker explains, “branches will not disappear, but their role must shift from high-cost processing of routine transactions to guidance, sales and high-value servicing, often through lighter, but sturdier formats”.

To discover where your company must shift focus in order to increase profits and customer satisfaction, don’t assume what they want but get to know what it is through both quantitative and qualitative measures.

Read the full article here.