Customer Experience in Core Banking: Self-Service Convenience - Stefanini

Customer Experience In Core Banking: Self-Service Convenience

Customer requirements are changing and becoming more sophisticated. Customers today expect service providers to provide quick, smooth, and personalized experiences. Customers’ banking routines likewise altered, and many increasingly prefer digital banking services. Banks prioritizing customer experience (CX) tend to outperform their peers regarding financial performance, such as total shareholder return (TSR), higher growth, and reduced costs. Therefore, customer satisfaction is a significant factor that can differentiate one bank from another. Alyson Clarke, Principal Analyst at Forrester, says: 

“Improving CX goes straight to the bottom line. For a large multichannel bank, a 1-point improvement in its CX Index score can lead to an incremental $123 million in revenue. For a direct bank, it can lead to an incremental $92 million in revenue. Additionally, the effect of CX changes on business outcomes for US banks is exponential—i.e., revenue growth from better CX gets progressively larger, such that US banks have the highest gains from improving already good or excellent experiences.” 

There is a positive relationship between customer happiness and purchasing decisions—customers who are pleased with their banking experiences are likelier to purchase more of that bank’s products. Happy customers are six times more likely than unsatisfied customers to say they’ll stick with a bank. 

What impact does digital banking have on the client experience? 

Digital technology has revolutionized banking by enabling customers to quickly manage their finances, access their accounts, and transact anywhere and anytime (Dudovicz, 2021). Customers can also benefit from digital banking in the following ways: 

  • Personalization: Personalized digital banking solutions cater to customers’ needs by utilizing consumer data to offer appropriate products and services or develop tailored financial plans. 
  • Speed and efficiency: Digital banking transactions execute far faster than traditional banking transactions, saving customers time and trouble.  
  • Security: Digital banking platforms are highly secure, and banks use a variety of security procedures to safeguard consumer data.  

What role does digital transformation play in client retention? 

Banks have the potential to use digitization in various ways to retain consumers. For starters, digital banking is more convenient for users because it allows them to access financial services anytime and anywhere. They can use their smartphone or computer to check their account balance, transfer funds, pay bills, and do other banking without visiting a physical bank branch. Customers who value convenience are more likely to stick with their bank. (Strohm, 2023) 

Second, digital banking enables banks to offer customers a more tailored experience. Banks can gather and analyze consumer data to better understand their preferences, behaviors, and needs. This information enables banks to adjust their goods, services, and communication to the needs of their consumers. Because customers feel valued and understood, this personalized approach can boost customer satisfaction and loyalty. (Chauhan et al., 2022) 

Third, banks can save money by automating regular procedures, decreasing manual errors, and streamlining processes. Automation reduces operational costs and allows banks to provide better rates and fees to customers. Customers are more inclined to stay with a bank that offers inexpensive and transparent pricing if the costs are lower. Overall, digital banking can help banks retain consumers by providing ease, personalization, and cost-effectiveness. By embracing digitization, banks can stay competitive, fulfill customer expectations, and establish long-term client relationships. 

Banking digital transformation: it’s about AI 

Banks have always adopted the latest technological advancements to revolutionize how customers interact. Electronic, card-based transactions first appeared in the 1970s, then automated teller machines (ATMs) in the 1960s. The advent of 24/7 internet banking in the 2000s initiated rapid growth of mobile-based “banking on the go” in the 2010s. (EQI, 2023) 

AI-powered digital technology is now a reality. With lower costs and improved accessibility, AI can increase automation and surpass human decision-making in speed and accuracy. Moreover, AI presents an attractive investment opportunity, potentially generating up to $1 trillion in incremental value for banks annually. (Kumari, 2023) 

Disruptive AI technologies, in general, have the potential to enhance banks’ capacity to achieve four significant outcomes: 

  • Better profitability 
  • At-scale customization 
  • Differentiated omnichannel experiences 
  • Quick innovation cycles

How Stefanini assists in digital migration 

Cloud computing 

Moving to the cloud enables banking institutions to utilize a broad range of technologies, allowing financial institutions of any size to upgrade legacy systems piecemeal or all at once. Cloud-based banking lets customers and staff access services from any location, enabling remote transactions and remote work, effectively providing staff with the tools to meet customer service needs with agility. This system allows data collection from across many devices while increasing the security and capacity for information processing. Banks can also leverage cloud resources like AI, IoT, cybersecurity mesh, eSignature, ID Verification, blockchain, and more. 

Artificial intelligence (AI) 

AI technologies provide various functionalities that can automate and optimize business processes. One of the most significant benefits of AI is its ability to automate analytics, data monitoring, security activities, and identify fraud and violations, all while providing insights that drive improvement. Instead of exhaustively searching for areas to use AI, it is more beneficial to determine how this technology can support existing goals. 

Customer Service 

Chatbots, the most obvious application of AI, help banks provide meaningful online services for customers after business hours. Similarly, chatbots can provide omnichannel customer service support, identifying customer tickets through external platforms like social media. They can connect the ticket with client records or an email address so that staff can swiftly resolve concerns. 

AI Analytics 

AI can automate analytics, data monitoring, security, and identify fraud while providing insights that drive improvement. Determining how AI can support existing goals is more beneficial than exhaustively searching for areas to use it.  

AI Anti-Fraud and Security 

AI is crucial in cybersecurity and fraud detection, especially in the banking sector. AI-powered security works through pattern recognition, real-time analysis, predictive analytics, natural language processing, biometric verification, network security, data loss prevention, threat intelligence, reducing false positives, and integration with IoT devices. Incorporating AI into cybersecurity and fraud detection improves the detection process’s efficiency and dynamically adapts to evolving threats. However, it’s worth noting that malicious actors also use AI to craft more advanced attacks. 

Digital Banking Transformation: Partner with Stefanini  

Our solutions address this transformation, allowing you to embrace new business models and define a modern business architecture. We know your banking customers want seamless interactions between their physical and digital banking experiences. 

We provide a holistic approach as we build a digital roadmap for your business. Our digital and application service experts will make that roadmap a reality, designing and implementing new digital solutions. Our end-to-end offers will digitally transform your bank, managing risk and driving profitability. 

Whether creating new mobile services with agile application development or equipping your team with digital workplace services, Stefanini is prepared to take banking institutions into the next stage in digital transformation.  

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