How intelligent service platforms are driving differentiated service experiences in commercial banking
By Steve Morgan, industry lead for financial services for EMEA, Pegasystems
In today’s competitive landscape, creating client value in banking is complicated. Entrenched siloes of marketing, sales and service are creating friction and blind spots that are hindering client journeys, costing banks their competitive edge and reducing their ability to retain and expand critical client relationships. Intelligent service platforms however are enabling banks to adapt.
Repercussions of Poor Client Service
Pega recently conducted a survey on attitudes of commercial banking clients, revealing that 49% of those clients would strongly consider switching financial institutions over the next year are alarming. Of those respondents, 20% have switched their main account in the past year and an additional 33% are strongly considering a change in the upcoming year. Furthermore, an eye-opening 49% of corporates would consider switching to a non-traditional challenger bank.
The key reasons an increasing number of commercial banking clients are switching financial institutions are:
- Poor overall service – 41%
- Lack of interest in client’s business – 34%
- Systematic errors with account transactions – 32%
Challenges in Getting it Right
Banking operations and client interaction need to converge and flow together across the lifecycle. In an era of rising challenger banks that deliver greater experiences and value, the vast majority of commercial banks struggle to deliver optimised, tailored, client-centric servicing and advisory due to three primary factors:
- Workflow friction and manual intervention
- Disparate systems and inconsistent data across regions and lines of business
- Disconnected channels and limited self-service capabilities
In today’s increasingly competitive landscape, and with a digital-native workforce, banks need to provide connected, consistent service capabilities across a multitude of channels across the client lifecycle, focused on continually building value and strengthening relationships each step of the way.
What’s Needed? An Intelligent Servicing Platform to Simplify and Streamline
Commercial banking is entering a new era – one that must be more connected, nimble and relevant in the guidance and service it provides clients. Informed, connected service capabilities with advancements in automation and robotics are keys to surviving – and thriving – in this new day. For example, an intelligent service platform powered by natural language processing, AI and real-time data provides efficient, effective client engagement, improved SLA compliance, and insights that result in tailored products and services specific to client needs.
An AI-enabled, informed approach to client experience can also alleviate operational tensions and improve how clients experience interactions across the lifecycle – from accelerated, compliant onboarding to efficient operations, proactive client service, to more conversant relationship management. Delivering consistently great service experiences cascade success and generate greater business value.
Banks experience 15-25% cost reduction, 30% greater client retention and 20% increase in revenue with such a tactic. And it doesn’t require years to realise those outcomes with the right digital transformation approach.
In summary, workflow friction, disparate systems and disconnected channels are unnecessarily holding banks back. If banks don’t make a change, they risk not only dissatisfied customers but also poor SLA and service metrics, missed revenue opportunities and lower profits. Intelligent service platforms are key to success in today’s banking environment.