Author: Sarah Britton
In my last blog, I wrote about the motivations driving FS providers’ investments in their digital financial solutions. Let’s explore exactly why the customer is their main motivation for investment and what impact that is having.
Demand and expectation
The new technological developments customers see in their day-to-day lives, such as Apple Pay or Touch ID, are one of the motivations driving providers to invest in digital financial solutions. Customers expect their financial services provider to offer equally modern digital capabilities. More than that, FS providers are looking beyond their industry to understand what today’s customers expect.Customers are driving financial service providers to invest in #digital #financial #solutions Click To Tweet
After all, we now live in a world of instant gratification where the business models of Apple, Amazon, Google, Facebook and others give their customers access to whatever or whomever they want from anywhere and on any device. Their App stores, on-demand and self-service are no longer ‘cool’ capabilities; they are simply part of everyday life. With customers now consuming services in a completely different way to 10 years ago, financial services companies are investing in digital financial solutions just to keep up.
Back in the driving seat
Today’s customers are also tending towards self-service. But putting the customer back in control is not just about giving them access to what they want, wherever and whenever they want it; it’s also about ensuring services are easy-to-use and deliver the functionality needed. Providers need to design services around the customer, so they can easily serve themselves without needing to seek assistance.
Equally, there are times when customers prefer a human touch. As people increasingly manage their finances on their mobile devices and tablets, digital financial solutions allow them to use modern services such as web chat, chatbots and even video chat to talk to an advisor.
Retention and growth
Mobile is becoming the platform of choice for customers. After all, a mobile banking platform on a mobile device provides customers with the immediate feedback they’re looking for in a world where they crave instant gratification.
The convenience of a digital platform means they interact with their financial institution more frequently: they pop in several times a day rather than maybe a couple of times a month – if at all – to a branch. This increased interaction keeps the brand front of mind and, as such, is important for customer retention.
A digital financial solution’s ability to grow the customer base and help with customer retention provides a compelling proposition for investment.
Linked closely with customer demand and expectations, digital financial solutions can enhance customer experience – another key motivator for investment. By delivering a tailored customer journey, with the ability to test, lean and improve through the data captured in the process, digital financial solutions make for happier customers and a better NPS (Net Promoter Score).
Financial services providers are looking to companies in other industries for inspiration, with brands such as Apple and Amazon top of their list.
Understanding your customer through data
Digital engagement generates new data and new insights – and an opportunity for FS providers to improve their understanding of their customers. This understanding, in turn, allows providers to improve customer experience and engagement, further supporting the case for investment.
Examples of valuable data that providers can easily collect through digital financial software include attrition rates, spend rate, adoption, engagement, behaviour across channels, usage, dwell time, purchases, sales, complaints, activations, growth, retention, customer satisfaction… The list goes on.
Beyond the data providers can gather, digital financial solutions also allow providers to involve their customers in decisions around their solutions. Suggestion schemes, surveys and reviews, for instance, give customers a voice that allows them to tell their provider exactly what they want. From the provider’s perspective, this unique insight into their customers feedback is vital for delivering on customer demands.
With the customer top of the list when FS providers are evaluating investments in digital financial solutions, I hope I’ve given you some insight into why that is. Are you currently building a case for investment in a digital financial solution?