Authored on: Feb 07, 2012
The banking industry is changing rapidly. Banking customers have more product, channel and banking choices than ever - yet banking products are largely undifferentiated. Customer loyalty is diminishing globally as banks struggle to regain trust. As the world's financial institutions seek to rebuild customer trust in their banks and brands, innovation around customer retention and customer engagement are imperative.
This is being made more complex by the increasing range of choices available to banking customers. Banking services are proliferating with more account types and products on offer. Competition comes from traditional banks and non-traditional players like online-only financial services companies and retailers. With more choice, customers are less loyal and increasingly likely to own financial products from multiple companies.
Banks cannot afford to wait to respond to this changing landscape. It is increasingly easy for customers to move to new providers- so any delay means losing revenue. Those who move quickly will build the kind of deep customer insight needed to create a long term competitive advantage. Banks need to move beyond simply trying to manage the customer experience to creating a new kind of responsive customer engagement. And they need to do so now.