Unlocking the Future of Customer Experience in Financial Services: Key Insights from the 2024 Benchmark Report
By Scott Draeger, SVP of Product Marketing and Vertical Solutions at Smart Communications
For financial institutions and banks, enhancing customer experience is crucial as customer expectations shift rapidly. As younger generations prepare to inherit substantial wealth, and women increasingly take charge of household finances, financial institutions face the challenge of adapting to diverse and changing demographics. This includes embracing mobile and web-based interactions while maintaining a strong emphasis on security.
To shed light on what truly drives satisfaction and loyalty among today's financial services customers—and to guide strategic technology investments for 2024—Smart Communications commissioned an independent research firm to survey thousands of consumers worldwide.
This article offers a curated look at the key statistics and data points from our global benchmark report, offering valuable insights into current trends and consumer expectations. For a deeper dive into these insights, you can download our comprehensive Financial Services Benchmark Report at the link below.
Let’s get into the data!
5 Factors Shifting Customer Experience in Financial Services
1. Enhanced Customer Conversations. Today’s customers demand clear, accurate, and engaging communication from financial institutions. Despite this, only 47% of consumers rate current communication standards as "very good" or "excellent." This gap underscores the necessity for advanced customer communication strategies and technology that can bridge this disconnect. Younger generations, such as Millennials and Gen Z, are particularly vocal about their preferences for real-time, interactive, and personalized interactions, while older generations, such as Baby Boomers, tend to prioritize clarity and accuracy.
2. Critical Security Measures. With data breaches making headlines, security is non-negotiable. A staggering 94% of respondents prioritize security in data collection, underscoring the need for robust, secure systems.
3. Mobile and Web-First Expectations. Millennials and Gen Z are setting the bar high with their preference for mobile and web-based interactions. Optimizing these channels is essential to meet their expectations and improve customer engagement, especially as 43% of consumers rated web and mobile-friendly experiences as their most preferred method of providing personal information.
4. Transparency in AI Use. Generative AI is the next big thing, but customers are wary. While 47% of financial services customers believe GenAI has the potential to improve the communications they receive, 66% have concerns about its security and 63% expressed ethical concerns. This makes the case that transparency and human oversight will remain crucial for gaining trust in AI-driven communications.
5. Multigenerational Influence on CX. Our data shows that 85% of customers now consider communications essential to CX, up from 81% last year. Yet, only 47% rate their financial services communications as very good or excellent. Generational preferences vary, as you can tell:
- Silent Generation: 88% value clear communications, 53% prioritize accuracy.
- Baby Boomers: 79% value clarity, 64% prioritize accuracy.
- Gen X: 68% value clarity, 56% prioritize accuracy.
- Millennials: 65% value clarity, 47% prioritize accuracy.
- Gen Z: 63% value clarity, 49% prioritize accuracy.
How Can Your Organization Adapt?
To improve customer experience in financial services, consider the following strategies:
Invest in Modern Tech: Consolidate outdated systems for managing customer communications and migrate to a centralized, cloud-based Customer Communications Management (CCM) solution. This will ensure your communications are not only compliant but also tailored and engaging, whether they’re delivered via mobile, web, or traditional channels.
Enhance Personalization: Utilize an advanced digital forms automation tool to streamline data collection and make customer interactions smoother and more personalized. The winners will be strong multi-generational communicators that span channels and understand context.
Prioritize Security and Transparency: Ensure your data collection processes are fortified with top-notch security standards. Also, be transparent about your use of AI in communications, providing human oversight to build trust and avoid pitfalls.
Why It Matters and What’s Next
These steps aren’t just about keeping up—they’re about leading the charge in a competitive landscape. By prioritizing personalized, secure, and transparent communications, you’ll not only boost customer experience and satisfaction but also drive loyalty and retention. In an age where 65% of customers might switch providers due to poor communication, getting it right is crucial.
To navigate these complexities, financial services providers must embrace agile, cloud-based systems that facilitate seamless omnichannel communications across the enterprise. By connecting to core systems and leveraging best-in-class customer communications management (CCM) solutions, institutions can enhance personalization and streamline interactions, ultimately boosting both efficiency and customer satisfaction.