Banks increasingly view innovations in customer experience (CX) and user experience (UX) as crucial to future success. In fact, a September 2023 American Banker poll of 110 banking professionals shows that 92% of banks rank CX innovation among their top three priorities this year — marking a significant increase from the 78% recorded just a year ago. For this article, CX is defined as focusing on customers’ interactions with the bank while UX is concerned with the employee-user, but both drive customer satisfaction, loyalty, and efficiency.
Although the visual appeal of a website and the convenience of mobile apps remain important aspects of CX/UX, there are less obvious ways to make upgrades. CX/UX is no longer solely about creating aesthetically pleasing interfaces and improving mobile capabilities. It's about addressing user pain points, streamlining processes, and leveraging technology to enhance the overall customer and stakeholder experience.
Banks that acknowledge the transformative power of CX/UX innovations must also recognize how they can drive substantial ROI without focusing too heavily on eye-catching, resource-intensive upgrades. Instead, develop a strategic focus on UX that occasionally embraces more mundane goals to propel your organization to new heights.
Rethink CX/UX innovation
In recent years, banks have focused on CX by refreshing the look and feel of sites and apps to make them easier to navigate. The next set of improvements will be most effective if they are concentrated on specifically targeted ROI gains.
Identifying and resolving pain points is key to maximizing innovation value, especially during critical processes like account opening and servicing. Impactful innovation finds ways to streamline these interactions. It’s important to note that simply enhancing CX is not enough to improve all channels. In the case of servicing accounts, improving UX can help the bank representative solve a problem more easily or even reduce the need for remedial interactions. Many such UX/CX upgrades are powered by new AI technologies that revolutionize the way financial institutions interact with customers. From chatbots providing instant assistance to predictive analytics anticipating customer needs, AI has the potential to save resources and create a more seamless and satisfying experience.
These technologies are most effective when integrated into a robust and modern core system. Outdated systems often hinder innovation and limit banks’ ability to adapt and respond to customer needs quickly. By investing in core system modernization, you lay the foundation for a more agile, responsive, and user-centric organization.
Core modernization as CX innovation
Some may think of modernization as simply a technical overhaul limited to the back end of operations; however, its impact reverberates throughout the entire user experience. Banks that are slow to modernize endure lengthy onboarding processes and an inability to react to market shifts. As a result, user experience suffers, and customer satisfaction diminishes. Upgrading essential infrastructure addresses these issues to improve processes for both customers and bank employees.
Core modernization enables solutions that streamline onboarding, seamlessly guiding customers through the process and reducing the time from application to account activation. At the same time, customer service interactions become efficient exchanges, where representatives have access to real-time data and insights, which allow them to resolve issues promptly. In addition to customer-facing improvements, modernization benefits internal users and facilitates data-driven decision-making, putting the entire bank in a position to thrive.
Benefit all users
Banks that modernize for CX/UX see a ripple effect of benefits that extends beyond customers to internal users such as tellers, bankers, and risk mitigation teams.
Customer benefits include:
Improved CX – Customers can perform transactions efficiently, with fewer errors, and navigate their accounts effortlessly. This increases satisfaction and loyalty.
Enhanced security – Strengthened data protection and a reduced risk of cyberattacks assure customers that their financial information is safeguarded.
New features – Core modernization paves the way for new offerings such as real-time updates, personalized recommendations, and faster account servicing that appeal to digital natives.
Meanwhile, internal users experience advantages including:
Increased efficiency – Routine tasks are automated and internal processes are streamlined, reducing the workload for bank staff, and freeing them up to focus on more value-added tasks.
Informed decision-making – Advanced analytics and reporting tools provide access to real-time data and insights, to provide better support and personalize interactions.
Reduced errors – Improved core technology reduces the chances of technical glitches or system failures, which, in turn, bolsters staff confidence and morale.
Develop a holistic approach to CX innovation
Banking is a multifaceted domain, and CX innovation should reflect this complexity. It encompasses not only the external experience of customers but also the internal workings of institutions. By addressing pain points and streamlining interactions at every level, banks create a seamless, efficient, and satisfying experience for all stakeholders.
SoftServe offers a comprehensive suite of services, including assessment and consultation, end-to-end process automation, and core modernization. Our expertise enables banks to transform operations into agile, customer-centric, and future-proof institutions.