© Copyright Acquisition International 2026 - All Rights Reserved.

Article Image - Why Customer Experience is a Key Differentiator in the Banking Industry & How the Industry Is Set to Change for Consumers
Posted 14th June 2022

Why Customer Experience is a Key Differentiator in the Banking Industry & How the Industry Is Set to Change for Consumers

According to a recent study by Gartner, 81% of companies compete mostly on the basis of CX, making strong CX a key competitive differentiator for Banks. Gartner’s research also reveals that the higher a customer’s experience is in terms of quality, the more likely they are to remain loyal to a particular brand or institution - meaning CX has the power to improve customer retention.

Mouse Scroll AnimationScroll to keep reading

Let us help promote your business to a wider following.

Why Customer Experience is a Key Differentiator in the Banking Industry & How the Industry Is Set to Change for Consumers

Banking Customer Experience

By Jon Brooks, Head of Financial Services UK at Sabio Group

Customer Experience, or CX, is fast becoming the competitive differentiator in the banking industry.

Banks – and financial institutions in general – that invest in CX have on average higher rates of recommendation, greater ‘wallet share’ and are more likely to be in a position to cross-sell and up-sell alternative products and services.

According to a recent study by Gartner, 81% of companies compete mostly on the basis of CX, making strong CX a key competitive differentiator for Banks. Gartner’s research also reveals that the higher a customer’s experience is in terms of quality, the more likely they are to remain loyal to a particular brand or institution – meaning CX has the power to improve customer retention.

So, in short, it’s critical that Banks get their CX strategy right.

With CX playing an ever-increasing role in a Bank’s success, what will the banking landscape for consumers look like in the next five years? And what emerging CX trends will we see introduced in that time?

 

Embedded Products & Services within Mobile Apps to Provide Personalised Experiences

Customer ‘self-service’ is one of the fastest growing CX trends across the Banking industry today. With the majority of customers using mobile apps for a vast array of other services (such as shopping, utilities etc) it’s almost an expectation that Banks will offer this service too. The teams and associated expertise that are needed to create, manage and optimise those apps are not difficult for enterprise organisations to manage in-house. Ensuring a personalised in-app experience that supports many customers self-serving within their app will help stronger engagement and adoption.

 

The Evolution of AI

Rather than wait on the phone, customers now have the option to consult AI-enabled chatbots when faced with challenges. These chatbots pull and process information from various sources, such as the Bank’s knowledge-base and CRM customer profiles, to respond to incoming customer service requests. Should a particular request exceed the chatbot’s capabilities, it’s automatically escalated to a live service representative who can help the customer work toward a resolution. Best of all, more and more banking apps are offering chatbot technology as a native functionality, which means customers can quickly resolve issues from anywhere, at any time.

 

The rise of Digitalization

The pandemic and the impending lockdowns limited, and in some instances completely removed, the ability for customers to physically visit their Banks which often resulted in voice channels being swamped with calls. In order to deliver great CX for customers, it became critical for Banks to offer customers’ alternative digital channels as another method of customer service and support. But this is easier said than done. Deploying an integrated omni-channel communication strategy with end-to-end reporting and data is one thing, providing the tools and support for less tech-savvy customers is another challenge Banks have yet to land.

 

Humanization of Digital Interactions

Offering customers a range of channels is a good first step to delivering great CX in Banking. However, while many customers may be comfortable interacting with a ‘bot’, there will be just as many struggling with the lack of humanisation across their interactions with the Bank. This is especially the case when those interactions involve the exchanging of sensitive information or data. Therefore, it’s critical that Banks find ways to soften the use of bots, by giving them personas or personalities and allowing that bot service to be joined up with human assisted service.

 

So, there you have it – the four key trends in CX I expect to see across the banking landscape in the next few years.

What’s clear is that the banking industry is changing and changing rapidly, and CX is a clear differentiator for consumers when choosing who they will continue to bank with.

By not taking CX seriously, some Banking institutions are in danger of falling into the red when it comes to credit among the consumers of tomorrow…

Categories: Finance, News


You Might Also Like
Read Full PostRead - Eye Icon
Most Innovative Accountancy Firms of 2016, the USA
Leadership
30/06/2016Most Innovative Accountancy Firms of 2016, the USA

Founded in Chicago in 1924, Grant Thornton LLP (Grant Thornton) is the U.S. member firm of Grant Thornton International Ltd, one of the world’s leading organisations of independent audit, tax and advisory firms.

Read Full PostRead - Eye Icon
relayr Completes Second Strategic Acquisition
Innovation
28/02/2017relayr Completes Second Strategic Acquisition

relayr, the global enterprise Internet-of-Things (IoT) platform provider, announces its second strategic acquisition within two months.

Read Full PostRead - Eye Icon
Deal of the Year 2014: Yes Bank Raises US$500m through QIP
Finance
02/03/2015Deal of the Year 2014: Yes Bank Raises US$500m through QIP

In May 2014, YES BANK, India’s fourth largest private sector bank, successfully closed a qualified institutions placement to raise US$500m. We take a closer look at this major deal

Read Full PostRead - Eye Icon
Fourth Quarter Update: A 2015 Year End Round-Up
Finance
26/02/2016Fourth Quarter Update: A 2015 Year End Round-Up

Founded in 1982, Global Prior Art is an established leader which is widely known by its trademark “The Most Trusted Name in IP Research.”

Read Full PostRead - Eye Icon
Drillisch’s Acquisition of Phone House Germany
Finance
21/05/2015Drillisch’s Acquisition of Phone House Germany

Drillisch's Acquisition of Phone House Germany

Read Full PostRead - Eye Icon
Doing Business Overseas
Finance
05/05/2016Doing Business Overseas

Landing Dione is a Consultant, who specialises in real estate management and strategies, quality management, value chain management, project management and business development.

Read Full PostRead - Eye Icon
Battery Bonanza!
Innovation
13/10/2021Battery Bonanza!

Constant development means that businesses are always looking for the latest developments. Leading the way forward is the team at American Battery Solutions.

Read Full PostRead - Eye Icon
LinkedIn Outbound Sales Tactics
News
08/04/2024LinkedIn Outbound Sales Tactics

The battle for the customer is never-ending. If your company used to be inbound-only but could use some help, appending outbound sales tactics will infuse fresh ideas into your strategy.   With the slight difference in who initiates the sales process (whe

Read Full PostRead - Eye Icon
Expertise in All Fields of Business
Legal
10/02/2017Expertise in All Fields of Business

We are a Tunisian law firm of international standing specialised in business law, recently chosen as part of the ‘2016 African Excellence’ awards.



Our Trusted Brands

Acquisition International is a flagship brand of AI Global Media. AI Global Media is a B2B enterprise and are committed to creating engaging content allowing businesses to market their services to a larger global audience. We have a number of unique brands, each of which serves a specific industry or region. Each brand covers the latest news in its sector and publishes a digital magazine and newsletter which is read by a global audience.

Arrow