Only CX can save banks from the rise of the fintechs
Every bank is aware of the rapid growth of the Fintechs (Financial Technology companies). These innovative startups have been carving out slices of...
Webhelp undertook a survey recently to explore personalisation in the banking industry. One interesting outcome from our research was that we noticed how customers who experience good customer service from their bank are far more willing to trust that organisation with their personal information.
Perhaps this seems obvious. Customers generally trust and feel more empathy with brands that treat them well, but extending that trust to personal data is more than just feeling comfortable about banking with one particular brand or not. It demonstrates that there is a stronger bond and level of trust between these customers who experience good service and the brand.
This is extremely important in the present day business environment – not only in banking. Every company today is scooping up as much information as they can find on their customers so they can use analytic processes to get more insights into how their customers behave and what they might want.
Brands and customers today are caught in a cycle where the customer expects better, more insightful and personal, service. The brands need to access and analyse information for this to be possible, but the customer must feel comfortable handing over their personal information.
A recent ransomware attack demonstrated how organisations can be crippled by hackers. In the UK many NHS hospitals resorted to pen and paper as the computer systems were locked. Over 200,000 computers in over 150 countries were locked and a ransom was demanded – pay the ransom and the machine will be unlocked.
Last year the technology company Yahoo! announced that the personal information on over half a billion customers was posted online by hackers. Customer accounts and passwords were available for anyone to see online and had been since 2014 – just the company had tried to keep it quiet since then.
With all these attacks on our personal information going on and affecting even the largest of organisations, is it any surprise that customers are sometimes wary of handing over their data? When the British Chartered Institute of Marketing recently surveyed 2,500 people they found that nine out of ten British people have no idea what companies do with their data.
In fact, 57% of those surveyed said that they do not trust organisations to use their data responsibly and 70% fail to see the benefit of sharing their data with organisations.
With so many people not trusting organisations to look after their data there is certainly a need for customers to be more educated on the benefits. As any shopper using the Amazon retail site knows, there are tremendous benefits when a brand knows what you like. Deals and offers can be personalised to reflect what you might want to buy and recommended products are likely to be items you are interested in.
The benefits of sharing data are clear, but the trust in brands is still low. Our own research at Webhelp has demonstrated that a great customer experience can create a more trusting environment. Companies that want to explore how to personalise their customer relationship need to consider this seriously – customers will not offer their data if they don’t trust you. I’d love to hear what you think of our infographic and what other topics you would like to hear about this year? Leave a comment below and let me know, or get in touch on LinkedIn.