essay on customer service in banks

10 Applied Strategies to Improve Customer Service In Banking With Examples

• Updated Nov 13, 2023
• Estimated Reading Time: 0

There is a new baseline for the customer experience in banking. 

People expect more channels, and faster and personalized responses without long wait times. Banking customers want their financial institutions to provide more than just basic service – they want insights, guidance, and relevant recommendations. 

Hence, improving customer service in banking is crucial. 

A study by Accenture shows that 48% of bank customers demand preferential treatment and rewards in exchange for their loyalty to your bank.

In the banking industry, where technology continues to evolve the way we handle personal and business finances, quality customer care includes keeping pace with both live and digital options for handling simple to complex transactions.

What is Good Customer Service in Banking?

Customer service in the banking sector depends on efficient and prompt customer service. Customer service is the most important duty of the banking operations. Prompt and efficient service will develop good public relations, reduce complaints and increase business.

Providing quality customer service is important in the banking industry because it makes customers feel valued, helps you meet their needs more effectively and improves your overall customer retention in banking as well.

Key Importance of Customer Service in Banking

Financial institutions have amongst the highest customer acquisition costs in the industry today. Acquiring new customers can cost five times more than retaining existing ones. Hence, it is essential to adopt the right strategies to improve customer service in banking.

Customer service means different things in different industries, but it always boils down to the same basic element – providing superior levels of service to your customers. 

• Changing customer expectations – Customers today are more demanding and more sophisticated than he or she was thirty years ago.
• Increased importance of customer service – With changing customer expectations, competitors are seeing customer service as a competitive weapon with which they differentiate their products and services.
• Need for a relationship strategy – To ensure that a customer service strategy that will create a value proposition for customers should be formulated, implemented and controlled. It is necessary to give it a central role and not one that is subsumed in the various elements of the marketing mix.

10 Practical Strategies to Improve Customer Service in Banking

Today’s customer expects personal, relevant, accessible-anywhere experiences when they interact with businesses — and modern finance is no exception. With new post-pandemic norms setting in, digital-first service keeps customers connected to your offerings anywhere they need them.

• Monitor end-to-end customer journeys to create 360° view 
• Provide Real Time Support
• Deliver Personalized Experience
• Leverage a Banking Chatbot
• Develop an Omnichannel Experience
• Conduct Training on Intrapersonal Skills
• Create Knowledge Base for Self Help
• Solicit Customer Feedback
• Revitalize Digital Experience
• Make Use of Contextual Data 

Let us dive in to understand how each strategy can deliver exceptional customer experience in banking.

1. Monitor end-to-end customer journeys to create 360° view 

Mapping out your customer journeys is crucial to deliver the exact service that customers are expecting. 

First things first! You have to identify all touchpoints across all channels where you engage with customers. A common banking customer journey may include:

• A business professional checking account balance online
• Depositing a paycheck in-branch
• Verifying the deposited funds on a smartphone. 

You should have feedback experiences in place at all three touchpoints. Then by identifying target customers, create customer personas and focus towards your customer experience program.

Secondly, outline the journey for how customers engage with your institution. Start your journey map with the first point of contact and each next step and all potential steps until the journey is complete.

Finally, identify at-risk customers and proactively engage on a personal level to improve the relationship.

Note: If financial institutions can learn to identify at-risk customers, proactively engage on a personal level, and identify what is causing the customer’s behavior, companies have a much higher chance of keeping a customer loyal, maybe even for life.

The goal is to use experience management to move from reactive to predictive, and eventually, to a state of delivering exceptional experiences across all touchpoints.

2. Provide Real Time Support

People want to organize their finances on the go and find answers quickly online and the best option is live chat. 

Citibank reported that 90% of live chat users complete their home-equity application.

Live chat is a powerful tool to counter the bureaucratic and impersonal feel of banking institutions. It provides your customers with personal human support that’s easy to reach.

American Airlines Federal Credit Union recognized the advantages of live chat and empowered their service reps to engage customers in real time . The biggest German institutions like Hypovereinsbank and Targobank also use live chat as their main customer service tool.

How can live chat improve customer service in the banking industry?

• Increase sales conversions – Live chat can address customer queries instantly and help in faster decision making leading to more sales. It can also approach customers proactively – if they are stuck at some page/point you can trigger for a chat window to automatically open with an invite to chat.
• Sending files securely – Implementing a GDPR adhered complaint based live chat solution makes live chat suitable for directly sending files to your customers.
• Address customer concerns instantly – Live chat provides instant solutions for banking and financial queries with the help of digital engagement tools like video chat, co-browsing in order to deliver better customer service.
• Reduce customer support costs – With canned responses, you can handle multiple chats and offer faster responses. Live chat increases the efficiency of service reps by automated routing and delivers better banking support.

3. Deliver Personalized Experience

Personalized experience in any industry always pays off well. In the banking sector video chat is a wonderful tool that can have a positive impact on various aspects.

Video chat in customer service for banks has witnessed a whopping 70% growth . Its value even grows further when used in combination with other tools for customer engagement.

When the situations are complex where visual cues hold huge importance, a video chat platform emerges as the only option to ensure the best personal support.  

Benefits of video chat for customer service in banking

• Live customer engagement – Video chat helps businesses interact directly with customers on the website or mobile apps and improve the level of engagement manifold.
• Deliver personalized experience – When you combine a video chat platform with other customer engagement tools like live chat and chatbots, it’s always easy to provide personalized experiences at any time through the different stages of the journey. 
• Faster resolution of issues – By using co-browsing and video chat together, it becomes easy to collaborate with customers in real-time and fix issues faster. 
• Offer proactive support – The use of cross-platform video chat proves very handy in offering proactive support and effective engagement once you have gained insights about your customer journey. 

4. Leverage a Banking Chatbot

AI in banking customer service is gradually gaining wide acceptance. They are not only simplifying the processes for businesses but also enabling quick access to services that were formerly confined to apps.

Banks need to improve the quality of their customer service without sacrificing time to redundant user queries . 

Subsequently, banks now understand the importance of automation and 24×7 services that are not only convenient to them but to their customers. It means seamlessly providing scalable 24×7 customer support on multiple channels and languages.

AI Chatbots in banking customer service can help streamline transactions like money transfers and account balance checks via a conversational interface so that customers are constantly guided through their actions

How deploying an AI chatbot helps to deliver better customer service?

• Engage consumers 24×7 – A banking chatbot can be deployed on the website or on browsing pages to start conversations. It helps them analyze user behavior or interests, or introduce to them banking products.
• Deliver great conversational experience – AI bots respond accurately to the inputs of customers  and provide conversational experiences at each step of the journey. They route complex chats to the right human rep to ensure a humanized support.
• Offer personalized services – With the help of chatbot analytics (that captures user  behavior, trends and patterns) you can deliver relevant and personalized services and offers to customers.
• Automated support for FAQs – Bots are available 24×7 and banks can deploy them to solve customer problems any time without requiring human intervention. AI bots with advanced algorithms and machine learning ability can answer complex queries.

5. Develop an Omnichannel Experience

Nowadays, basic transactions in banks are speedily migrating from the physical to the digital channels. According to Reuters, 60% of customers would still prefer to open a new checking account at a bank branch rather than through digital channels

A majority of banks have adopted the omnichannel approach at the core of their strategies. 

It’s because banks have understood that ease, innovation, simplicity, and accessibility of platforms provided by FinTech companies can influence the customer behaviors quite strongly.

An omnichannel customer service strategy allows you to use all available marketing channels to achieve an integrated and seamless customer experience. 

The customer, on the other hand, is able to move from your app to the website to push notifications to social media, experiencing the same branding and messaging throughout in a synchronized way. 

How can an omnichannel approach benefit customer service in banking?

• Faster resolution rate – Omnichannel banks are capable of handling customer requests faster by using digital tools and strategies which increases the resolution rate as well as customer satisfaction.
• Improved customer experience – When banks engage across all online and offline customer service channels and deliver consistent support, there is a boost in customer experience.
• Streamline customer journey for better insights – Banks can easily understand the customer lifecycle better with conversation history and deliver personalized real time support.
• Reduce customer churn –  Customers expect instant response and when they are entertained across their preferred channels in real time, there is a significant reduction in the customer churn rate .

Note: However, banks should amalgamate traditional and digital components in order to create an omnichannel customer experience.

6. Conduct Training on Intrapersonal Skills

Financial matters are very critical to handle, so having frontline employees with exceptional interpersonal skills is an asset for any financial institution.

For example – There might be circumstances where you may find yourself in situations where you need to explain to a customer why their loan application has been denied or why a mortgage cannot be processed.

While it is important to be clear and transparent in explaining the options, one must display empathy and maintain the utmost composure. It will certainly go a long way in helping customers feel reassured.

So banks and financial service providers must invest in customer service training for employees to have them ready to navigate all possible scenarios. 

At times it may appear like these are additional costs that impact the bank’s bottom line, but at the same time will be made good by clients who stick with you because of good customer service.

7. Create Knowledge Base for Self Help

As banks face new and evolving challenges, including digitization, virtualization of the workplace, government regulations, and growing security concerns, they can gain a competitive advantage with knowledge management.

74% of customers report that they use a self-service support portal to resolve issues on their own before contacting a live service representative.

Creating knowledge base in the banking sector allows financial services organizations to more efficiently store and organize knowledge, which enables bank managers and employees to collaborate and stay aligned on short- and long-term initiatives. 

How to improve customer service in the banking industry with knowledge base?

• Ensure bank customers receive consistent information at any branch –  A centralized knowledge management system ensures that all employees have access to the same information, so they can then provide standardized answers to customers.
• Create a consistent brand experience, both digitally and in person – With a comprehensive knowledge base, you can ensure that you present a unified experience, no matter how a customer interacts.
• Provide all bank employees with up-to-date regulatory updates – A knowledge base system ensures that all employees receive updates about regulatory changes and understand how they impact the bank and its customers.  
• Offer a holistic view of market research and customer insights – By using a knowledge management platform to centralize all research and give all internal stakeholders access to the insights they need to make informed decisions.
• Enhance overall customer satisfaction and the CX –  When banks are equipped with a knowledge management system, employees can quickly search for the information they need to provide comprehensive solutions to client issues.

8. Solicit Customer Feedback

Customers are the ones who can anticipate their needs better than anybody else. 

After all, your customer data from your CRM and helpdesk tool can only tell you a part of the story. The other part lies with the customer. And no form of technology can magically help you read it.

It only makes sense to dive into this rich pool of information from your customer base by acquiring their feedback after every customer interaction. 

By doing this, you can gain insight into whether their needs are being sufficiently met, what financial products or services they’re interested in, their financial goals for the future, how their customer experience can be improved, and more.

For example, if a customer were to contact your bank’s call center with a service request, the representative responsible for processing that request might close out the call by asking whether the customer had any additional questions and whether they were satisfied with the service they received. 

9. Revitalize Digital Experience

Every customer engagement platform needs a digital-friendly service experience that gets customers what they need regardless of the device they use.

For example, customers can be easily frustrated if they try to open a new credit card from a mobile device, only to be redirected to a full-size desktop webpage. In the worst cases, customers are forced to physically sign documents or come into a branch to even begin the process. 

Mobile-first banks are prepared against shifts in device preference with the flexibility to meet their customers wherever they are.  Mobile users have already exceeded those of traditional online banking.

A dynamic interface design and full-featured portals on any platform feel more approachable, ultimately keeping customers loyal.

Providing an end-to-end digital facelift can also involve no manual processes. Managing documents via electronic signatures and other tools can streamline your backend to improve customer service. 

Even when leaving room for customers who prefer paper, digitizing behind the scenes will help you keep all their information at your team’s fingertips. 

10. Make Use of Contextual Data 

Leveraging contextual data is an excellent way for banks and financial institutions to survive and thrive in the long run. 

In a nutshell, contextual data refers to any form of information that provides valuable context about a person/organization and an event.

In banks and financial institutions, contextual data can be used to identify behavioral patterns and gauge customer loyalty, which they can then use to improve customer relationships. 

The data collected can also be used to create bespoke financial solutions specifically tailored to meet the needs of every customer. For banks and financial institutions, their most valuable sources of contextual customer data are their help desks and CRM (customer relationship management) tool.

While banks can use CRMs to track contact details, location, social media activity, and purchasing preferences of the customer, helpdesks or customer service software can be used to track their post-purchase interactions and their support requests.

Many help desk tools come with built-in analytics suites that can help you keep track of all your customer service KPIs without having to invest in another tool to track them. Every information can then be used to piece together a 360-degree view of the customer.

Furthermore, these customer profiles can help you tailor your financial products, upsell, cross-sell, create targeted marketing campaigns, and even design loyalty programs/provide preferential customer service.

3 Examples of Excellent Customer Service in Banking

Technology is rapidly changing the way we work, communicate, and bank. Those who are steering the ship understand the importance of not only better meeting consumers where they are today, but also planning ahead to proactively address new needs in the future. 

The below mentioned financial service leaders are freeing up members of the team to deliver higher levels of service and tailor offers to make banking more personal. 

1. Navy Federal Credit Union – Delivering effective omnichannel experiences

Virginia-based Navy Federal Credit Union exclusively serves the military, veterans, and their families — a segment to which it promises “once a member, always a member.” 

Great customer service is important in delivering on this promise, the Navy Federal Union realized that. 

“As a lender, it’s really important for us to be consistent in the member service experience” explained Prabha KC, a mortgage loan officer at the company. “If the members are overseas they can still access their loan information.” 

Offering self-service channels was one way the company sought to improve its service delivery, not only facilitating 24/7 support but also freeing up its member service representatives to do more added value work on behalf of their members. 

As a result of the implementation, the number of self-service applications doubled and the time taken to submit an application decreased by 40% .

2. BOK Financial – Making banking more personal

Investing in personalization empowers banks to deliver the white glove service that customers are looking for. In fact, the majority 72% of customers say that personalization is highly important in financial services today. 

Oklahoma-based BOK Financial adopted strategies to help it meet consumer demand for an intuitive and personalized banking experience.

By running consumer loans and mortgage applications, the company is delivering a tailored experience and, as a result, has seen completion rates more than triple. Moreover, the majority of volume now comes through digital channels — in stark contrast to the previous 15%. 

3. Amarillo National Bank – Adapting and responding to new needs

When banking teams prioritize their customers’ needs and preferences, they can deliver better service, and they can achieve more impactful customer relationships as a result.

During the global pandemic, many lenders, including Texas-based Amarillo National Bank (ANB), searched for ways to continue closing loans remotely. The value of hybrid and electronic closing methods quickly became clear. 

“We knew we had to move forward with the hybrid closings so that our customers didn’t have to go into the title companies to close their loans,” Debbie Bigelow, senior vice president, recalled. They will continue to adopt innovations that allow them to succeed in a rapidly changing operating environment.

Wrapping Up: Customer Service is Banking is Paramount

The financial services landscape is in constant flux, with new trends and regulatory measures emerging almost every day. To ensure that your financial institution delivers the best customer experience possible, you need to keep your finger on the pulse of the industry and keep exploring the strategies to improve customer service in banking.

It is recommended that banks must open for change and constantly  look for ways to improve and embrace new technology. By listening to your customers and making smart investments in digital customer engagement tools, you can guarantee exceptional customer service at your bank or financial institute.

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Snigdha Patel

Snigdha Patel is a customer experience researcher, author, and blogger. As part of REVE Chat, she focuses on helping organizations maximize customer experience using omnichannel messaging and conversational AI.

She creates contextual, insightful, and conversational content for business audiences across a broad range of industries and categories like Customer Service, Customer Experience (CX), Chatbots, and more.

Serving as the lead content strategist, Snigdha helps the customer service teams to leverage the right technology along with AI to deliver exceptional and memorable customer experiences.

Being a customer service adherent, her goal is to show that organizations can use customer experience as a competitive advantage and win customer loyalty.

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• Corporations

Customer Service in Banking

Updated 23 January 2024

Subject Corporations ,  Management ,  Finance ,  Personal Finance

Downloads 58

Category Business ,  Economics ,  Life

Topic Company ,  Customer Service ,  Banking

Good customer service is vital to the survival of any business in any industry. Despite this, companies in Jamaica have little appreciation of how important this is. My focus will be on the banking industry in Jamaica, with emphasis on customer service at the National Commercial Bank.

Customer service in banking is one of the most important ways to keep customers coming back. It includes responding to customers’ questions and complaints in a thorough and timely manner and interacting with customers through face-to-face meetings, telephone, mail, fax, and email. Most if not all bank employees are involved in some aspect of customer service.

Because of increased competition, banks are required to become more and more customer-focused, according to Washburn Financial Services. It is more costly to acquire new customers than it is to retain existing customers. Maintaining customers requires customer service staff in banks to provide service that is quick, error-free and convenient (Dansereau, 2017).

In this project, I will explore the customer-oriented industry of banking. Banks in Jamaica need to understand that if the customer isn’t satisfied with the services it is receiving from the bank, then it is highly unlikely that it would trust it with his hard earned money (Iccile Financial Services, n.d.).

Practicum Topic

Improving poor customer service delivery at the National Commercial Bank in Jamaica through more effective staff training, better streamlining of service delivery and more efficient handling of customer complaints

Practicum Form

The Research project form is best suited for this project because there is already a fair amount of existing literature that addresses the issue of poor customer service in Jamaica, As such, obtaining firsthand experience for the sake of this project (such as through an internship) would not be necessary. Further, I have had first-hand experience with the issue in the past, and will likely have similar skills in the future.

Proposed Location of the Practicum

Type of institution: Bank

Size: Jamaica’s largest financial services provider with 40.8% market share by assets of the commercial banking sector (as at September 2013) – based on information on its LinkedIn profile

Full-time: 2,282 / Part-time: 289 / Contract: 33

Services offered: Chequing and savings accounts, credit card facilities, personal and commercial loans, insurance, and wealth management; supported by online banking, along with telephone banking

Community serves: NCB has a network of 36 locations and over 170 ABMs island wide

The focus of the Practicum & Rationale/Justification

There is much improvement that needs to take place as it relates to customer service in Jamaica – particularly in the banks where a better level of service is usually expected. I am passionate enough about the issue to want to investigate it further. This, as I have personally experienced this poor level of customer service and was quickly able to identify areas that they could improve in. I am interested in finding ways in which the issue can be better addressed, so that bank customers feel less frustrated and more catered to when seeking banking services.

Practicum Objectives

u To determine the level of customer satisfaction among NCB customers as it relates to customer service

u To establish the relationship between service quality and customers’ satisfaction

u To recommend strategies enhance customer satisfaction basing on the study findings

u Elaborate on methods and provide detailed approaches to improving customer service – procedures include more effective staff training, better streamlining of service delivery and more efficient handling of customer complaints

Literature Review

Poor customer service in Jamaica is a long-standing, widespread issue that is present across many sectors, both public and private – the banks, of course, being no exception.

According to a survey by TD Bank in the United States, 60% of consumers who are happy with their bank say they have low- or no financial stress and more than half are optimistic about their financial future. Moreover, consumers who define themselves as happy with their bank spend 72 minutes less (7.3 hours vs. 8.5 hours) each week worrying about their financial situation compared to those who say they are not happy with their bank (Pilcher, 2013).

“All banks are not the same when it comes to the service they provide. Research shows those who feel valued by their bank are more likely to be happy with their financial state,” said Ryan Bailey, EVP/Head of Deposit Products at TD Bank.

For The National Commercial Bank in Jamaica, the issue is severe and very frustrating for their customers. It is an issue that desperately needs to be addressed, but that the bank seems incapable of adequately resolving no matter how much the issue is brought to light.

As outlined in an article entitled The Customer Service Hall of Shame, the customer service issues involve: ‘No or slow (we are talking days to return a phone call) follow-up from customer service (CS) agent when problem is identified, interminably long wait on the telephone for an agent to come to assist you. This can include the period from gestation to the birth of a human being — at least that's what it feels like to me; CS representative is asking you questions doggedly from a script. If you do not answer exactly as they require, 'dwag nyam you suppa.' They become confused and disoriented and might require deep therapy; No resolution to your problem over the phone. You have to attend their offices; and rude and obnoxious 'service' from an agent’ (Grinam-Nicholson, 2012)

In a letter to the editor of the Jamaica Gleaner entitled At Wits’ End with NCB, a customer of the bank complained about the horrific customer service that he was greeted with he sought assistance about an issue that he was having when trying to change his password (Holness, 2017)

Further evidence of customers being displeased with the customer service offered by the bank, can be found in a simple search of ‘NCB Jamaica’ on Twitter – a platform which is popularly used when persons want to share their personal experiences, whether good or bad.

Areas that the National Commercial Bank can improve in:

Better training staff so that they are more polite and courteous when dealing with customers, also to be considerate of customers’ time by moving with a sense of urgency

Streamlining service delivery – a lot of times customer service reps seem unsure of the process, they always have an air of inexperience about them

Handling customer complaints – customers’ complaints are often handled with little to no urgency

Proposed Methodology

This project will be completed in the form of a Research Project. I intend to utilize questionnaires, conduct internet research on second-hand experiences, and by holding interviews.

Questionnaires will be used to find out what proportion of customers are displeased with the customer service at the bank. This method is utilized because of its ability to identify patterns, as well as its ease and success of use.

Researching second-hand experiences will be done through interviews and internet research using social media channels such as Facebook and Twitter

Interviews (Phone and in person), will also be used where necessary. This will be done with customers of the bank and even staff members (to find out what the bank is currently doing by way of customer service training, and how complaints are addressed).

Expected Learning

Upon completion of this project, I hope to have a more in-depth understanding of customer service problems that the National Commercial Bank customers face – and would have investigated the methods that can be used to address these issues.

I expect to have also developed my people skills, by having learned more about the importance of interpersonal skills in the customer service environment, and how persons can go about communicating more effectively (both in writing, such as through emails, and in person).

Findings of the study

The customer service at NCB was ranked amongst the poorest in Jamaica, by a majority of the sample population. 25% of the customers complained of NBC's long queues, and standard system interrupts about ATM services. Also, a further 20% added that if given the option of a better bank with adequate and efficient banking facilities, they would transfer immediately. The customer service of NCB is anything but wanting from the findings of this study. A staggering 40% of the sample size of this study gave below 5 points, out of 10, while ranking the bank’s customer service. Some of the matters they cited as irritating and detrimental to their stay in the bank were;

(I) The bank’s online system is frequently unavailable, efforts to communicate with the customer service executives of the bank usually take long, and customers’ needs are never responded to.

(II) The customer service systems of NCB bank are not linked to other services or departments of the bank, hence even upon contacting them, clients’ needs are not sorted as they are transferred to other departments.

(III) Most of the customer service executives of NCB bank seem to lack any form of training about customer service. They thus lack the courtesy and communication acumen necessary to serve customers efficiently.

(IV) The bank overall seems to pay little attention to the customer service section of the bank. Hence there seem to be no plans to either train or develop a dedicated customer service center.

The first concern on customer service executives taking too long to process customer issues or even merely respond seems to be a factor of both insufficient staff and untrained staff. As per (King, 2010) customer service representatives should take as little time as possible answering to a customer’s questions but at the same time, not leave the customer hanging or in dire need of some communication or clarification. This rule ensures that a customer care representative serves many clients within a given span of time both adequately and efficiently.

Second, the divide between the customer service section of NCB bank and other departments shows a deeper problem within the bank’s operations and operations procedure. The compartmentalization of information within the bank seems not to be done well as customer service executives frequently transfer clients from their desk to other departments of the bank, due to lack of information. For instance, customers that complained of not being able to access their online platform and called NBC's customer care are frequently transferred to the IT department, which may or may not offer solutions. Further damaging the reputation of NCB, the said I.T. department does not function 24 hours, but from 7 AM to 7 PM. Thus any customer wishing to gain access to any support beyond this timeline must wait for the next day. In an economy that is aiming to grow to a 24-hour economy, the NCB is not ready for this reality. Not only are the customer support services insufficient, but its workforce seems to be entirely unequipped to meet the challenges that come with a large consumer base and 24-hour banking.

In addition to the above findings, it was established that do not only online communications with customer service officials fail but also do face-to-face interactions with the representatives of the different branches. The NCB seems to be running at the pace of a post office and not a banking institution. From feedback gained from different customers, the staff of NCB Bank, in general, seem to be highly unreliable about customer service and offering a quality banking experience. This is gauged by their presentation, seemingly little knowhow of how the bank’s systems function and even their role as customer care representatives. This shows that the bank’s recruitment strategies are not apt, thereby recruiting personnel that isn’t qualified for the said task. This has led to the NCB being termed the most bureaucratic and unfriendly customer organization one can find in Jamaica. The poor ratings were given to the bank thus present a need for drastic business re-engineering and process improvement, with a prime focus on the customer care section of the bank’s services.

Financial institutions in Jamaica, majorly banks, make huge profits in a country where most peoples’ earnings barely permit them to meet minimum living standards, if not less. In short, Jamaicans do not love banks as there is the notion that the banks prey on them/extort them for the little they have. NCB is not helping this notion as its quarterly profits seem to be rising whereas the delivery of service, specifically customer service is seriously wanting. Based on a survey done by IC www.Insider.com, the NCB’s Financials first quarter results to December last year reveal and show that the bank has much effort to put into pacifying its customers. This “aggravation” with the bank largely stems from the reality that a visit to NCB bank’s branches on a typical day is likened to a journey into frustration for many of its customers. This holds true as per the poll, even at a time when electronic banking is on the rise in neighboring countries and worldwide. NCB’s customers feel; neglected, extorted and de-humanized by its customer care and other related services. This, according to Insider, has largely contributed to the bank’s slow but certain “departure” rate. As per (Brink, 2010) departure rate is the pace at which customers leave a financial organization in favor of another. Other authors call it the turnover rate. The majority of NCB’s earnings come from government institutions and business enterprises; their consumer base is thinning rather than increasing.

The customer service representatives of NCB bank seem to operate slowly and thus, transactions that take. Again, as per the survey, BNS Spanish

is said to notch ahead of NCB bank with regards to customer service. Furthermore, customers that are using NCB as their bank of choice seem to have influenced those that are not to stay out of the bank and opt for others. This, the NCB should take very seriously as word of mouth marketing being done by their customers is detrimental to the life of the bank. The interaction between customers of NCB and its potential customers is a cause of concern for the future of the bank. With the noticeable departure rate and slow uptake rate the bank, it is slowly becoming likely that NCB will majorly be an institutional bank, catering to the needs of commercial and governmental bodies and not individual persons. The management of NCB has to look into their customer care services seriously.

Recommendations

First, compartmentalization of information should be done, so that customer care representatives have limited but useful information about every customer. This goes a long way to solve problems at the customer service level, leaving the rest of the departments to aid in the said effort or streamline procedure when needed. This approach reduces both movement of customers and the processes involved when solving a client’s issue. Compartmentalization ensures that everyone in the organization is precise to only the information required for them to do their job or thoroughly. For instance, details of a customer’s status should be availed to the customer care representatives. This enables them to know whether a customer is active or not; such information is preceding information when one wants to solve any issue.

Second, the Information Technology section of the bank should be decentralized. This, hand-in-hand with compartmentalization, ensures that all the staff in the bank, particularly the customer care executives, can manage or have the rights to solve some technical issues at their level. This significantly reduces the communication a customer needs to make to get a problem addressed. Additionally, it reduces the amount of time on a single call/customer. Thus, one customer service representative can serve more clients (King, 2010).

The third is introducing a ticket system at the customer service section of the bank and using it to gauge commissions or other incentives that can be earned by the customer care reps. This ensures they are motivated to serve more clients within a day.

Also is the establishment of a rating system for the customer care representatives. This allows the clients to rate the quality of service they have received from a customer care representative. This can also be tied to the incentives that the customer care representatives receive and further, can be used as a method to appraise the performance of the said subset of employees (Brink, 2004). These changes, coupled with others, can go a great deal to improve the customer care services of NCB bank and give it a competitive advantage over its rivals.

SURVEY 1.0 RESULT

Poor Customer Service

Long Queues

Consider Transferring

Other Services

SURVEY 2.0 OVERALL RATING OF THE BANK

NO. OF SAMPLED CUSTOMERS

POINTS AWARDED

<5 (below 5)

<3 (below 3)

<2 (below 2)

As stated in an article in the Jamaica Gleaner entitled Complaints from Customers are Gifts to Customers, there are two essential things that every small business should master — delivering excellent customer service and managing customer complaints (Page, 2013). In fact, for Jamaica notably, one of the most effective ways for small businesses and start-ups to create a competitive advantage is to offer excellent customer service consistently.

This is because excellent customer service is not the standard to which we are accustomed, so companies that offer it provide a refreshing change that their customers will embrace, appreciate and talk about to others.

Naturally, when a customer is satisfied with the customer service and other services that a banker offers, he/she will opt to stick with the brand and is likely not to relocate to another bank. This in itself is a big plus point for NCB as customer retention is far cheaper than customer acquisition. Also, quality customer service improves the reference rate of a business (King, 2010). Once customers experience excellent service, they talk to other people in their social circles about the same. Hence the market, in this case, NCB Bank, gets free marketing agents. The bank can thus get more customers without spending anything.

Quality service not only improves customer confidence in an organization, but it also increases the morale of employees. This is through the affirmations of customers and further awards received for exemplary service. This boosts employee morale and their confidence in their ability to deliver on a day-to-day basis. Furthermore, the incentives gained indirectly as a result of exemplary customer service adds to the morale-boosting of employees (King, 2010).

Lastly, with quality customer service, the whole business becomes a unified/holistic marketing organ. This is through the subtle marketing achieved through quality customer care and other services at the NCB. This goes a long way to reduce the original marketing budget indirectly.

My focus in this project will be to highlight the challenges faced in the area of customer service in Jamaica, particularly in the banking sector and the National Commercial Bank, and to explore what needs to be done to address it adequately.

Adele. B., & Annekie, B. (2004). Customer Relationship Management and Customer Service. Juta and Company Ltd. South Africa.

Brett, K. (2010). Bank 2.0: How Customer Behavior and Technology Will Change the Future of Financial Institutions. Marshall Cavendish International. Thailand.

Dansereau, V. (2017, July). WHAT IS CUSTOMER SERVICE IN BANKING? Retrieved from Career Trend: https://careertrend.com/about-6718861-customer-service-banking-.html

Griffin, D. (n.d.). Types of Business Risk. Extracted from Small Business Chronicles: http://smallbusiness.chron.com/types-business-risk-99.html

Grinam-Nicholson, Y. (2012, July 11). The customer service hall of shame. Extracted from Jamaica Observer: http://www.jamaicaobserver.com/business/The-customer-service-hall-of-shame_11929252

Holness, S. (2017, July 25). At Wits' End with NCB. Recovered from Jamaica Gleaner: http://jamaica-gleaner.com/article/letters/20170725/wits-end-ncb

Icicle Financial Services. (n.d.). Welcome to Importance of Customer Services in Banking. Retrieved from Icicle Financial Services: http://www.iccile.co.uk/Importance-of-Customer-Services-in-Banking

Inter-American Development Bank. (2004). Revitalizing the Jamaican Economy: Policies for Sustained Growth. Inter-American Development Bank-USA.

Page, Y. (2013, July). Complaints From Customers Are Gifts To Companies. Retrieved from Jamaica Gleaner: http://jamaica-gleaner.com/gleaner/20130714/business/business5.html

Pilcher, J. (2013, March). Good Customer Service Makes Banking Consumers Feel Financially Confident. Retrieved from The Financial Brand: https://thefinancialbrand.com/28174/td-bank-customer-service-survey/

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Customer service in banking: what is it and how to improve financial services customer support.

Customer service in Banking is an essential component of the banking industry. In a field where trust, reliability, and security are paramount, exceptional customer service in Banking is a powerful competitive advantage. Financial services customer support in Banking goes beyond basic transactional support: It includes building relationships, understanding customers' needs, and providing personalized and professional solutions. According to a 2023 survey by American Banker , 63% of customers say that they would switch banks if they had a negative customer service in Banking experience.

In this article, we will delve deeper into the key elements of good customer service in the banking industry and explore its significance in fostering lasting customer relationships and the growth of financial institutions. We will discuss strategies for banks to deliver exceptional customer service and highlight real-world examples of banks that have excelled in this area.

The Role of Customer Service in Banking

The role of customer service in banking extends beyond satisfaction, loyalty, and retention. Banks with a reputation for excellent customer support in Banking can attract new customers, retain existing ones, and build a positive brand image. On the other hand, poor customer service in Banking can result in a decline in reputation, lost business, and negative word-of-mouth.

In today's fast-paced world, customers expect quick, responsive, and personalized service. They want to be able to contact their bank through multiple channels, including phone, email, chat, and social media. Financial institutions must adapt to these needs by providing consistent, seamless, and efficient customer support across all touchpoints. A 2020 survey by  KPMG found that 85% of customers say that they are more likely to recommend a bank to others if they have had a positive customer service experience. Here are the 3 important reasons to invest in Customer Service in Banking:

• Customer Advocacy: Exceptional customer service turns customers into advocates. According to a report by Zendesk , Around 72% of customers share positive experiences, while 68% become less loyal after a single negative encounter.
• Introducing New Offerings: As per Microsoft , quality customer service builds trust, leading 67% of customers to be willing to pay more for products and services. This trust provides opportunities for cross-selling additional offerings, boosting the bottom line.
• Aligning with Expectations: From a report by Accenture - customers seek a blend of automation and human assistance in the banking industry. Meeting this expectation by investing in digital support and skilled agents not only satisfies customers but also prompts them to share positive stories.

In summary, customer service in Banking is a critical aspect of financial services customer support. Banks must prioritize customer service in Banking excellence to remain competitive, build brand loyalty, and retain customers. By providing personalized, responsive, and efficient service, financial institutions can stand out in a crowded market and ensure long-term success.

Key Elements of Effective Customer Service in Banking 

Providing high-quality customer service in Banking is a crucial aspect of financial services. To improve customer support, banks need to focus on several key elements that contribute to a positive experience for customers. Here are some of the most important factors:

Swift Responses: Elevating Satisfaction with Timely Customer Communication

Customers expect prompt responses to their inquiries and concerns. Banks can improve their responsiveness by establishing clear communication channels and responding to customer queries promptly. This can be achieved through various means, including phone, email, chat, and social media.

A 2023 report by  Forrester found that 75% of customers are willing to pay more for banks that offer excellent customer service. The report also found that banks that invest in customer service in Banking are more likely to outperform their competitors in terms of profitability and customer loyalty.

Professionalism: Fostering Loyalty through Customer Service 

Bank employees should always maintain a professional demeanor when dealing with customers. This includes being courteous, knowledgeable, and empathetic. Customers who feel valued and respected are more likely to remain loyal to their bank. A 2021 survey by McKinsey found that banks that invest in customer service Banking can increase customer lifetime value by up to 30%.

Product and Service Expertise for Bank Staff

Bank employees need to possess a thorough understanding of the products and services offered by their institution. This ensures that they can provide accurate and helpful information to customers, address their concerns, and offer appropriate solutions.

Tailored Solutions: Enhancing Customer Engagement through Personalized Banking Services

Each customer has unique needs and preferences. Banks should strive to provide personalized service that takes into account each customer's situation. This can be achieved by gathering information about customers, analyzing their needs, and offering customized solutions.

A 2023 report by Accenture found that 80% of customers expect banks to provide personalized service. The report also found that banks that can deliver personalized service are more likely to retain customers and increase their share of wallets.

By focusing on these key elements, banks can improve the customer experience and increase customer loyalty. It is important to note that these elements are interrelated and rely on each other for success. Banks must ensure that all elements are present in their customer service Banking strategy to achieve optimal results.

Challenges in Customer Service for Financial Institutions 

• Long Wait Times: Customers often endure lengthy wait times at banks, both in physical branches and on customer service phone lines. This can lead to frustration and dissatisfaction. Efficiently managing customer flow and optimizing service processes can help minimize these wait times and enhance customer experience.
• Language Barriers: Banking institutions serve diverse customer bases, including people who speak different languages. Overcoming language barriers by training employees in multiple languages and improving communication channels can facilitate effective support and ensure all customers can understand and be understood.
• Complex Customer Service Process: The array of services and products offered by banks can be overwhelming for customers, making it challenging for them to navigate and understand their accounts. Simplifying the customer service in the Banking process, providing clear information, and using user-friendly interfaces can help customers manage their accounts with ease and confidence.
• Personalized Service in Lending: Lending transactions involve sensitive and intricate processes. Providing tailored, personalized customer service throughout the lending journey is essential. Addressing individual customer needs and concerns at each stage of the lending process can build trust and establish strong, long-lasting customer relationships, which is crucial in the lending sector.

10 Best Strategies to Improve Customer Service in Banking in 2024

Personalize customer experience .

In order to personalize the customer experience in the banking sector, it's essential to leverage data analytics and customer insights. Utilize advanced analytics to understand customer preferences, behaviour, and transaction history. Tailor offerings and communication accordingly, providing customized product recommendations, personalized promotions, and a more individualized approach to customer service.

Provide Real-Time Support 

Offering real-time support in the banking industry means ensuring quick and efficient responses to customer inquiries. Implement live chat support, enable instant messaging through banking apps, and utilize chatbots to handle routine inquiries swiftly. These channels ensure customers receive immediate assistance, enhancing satisfaction and resolving issues in a timely manner.

Make It Easy for Customers to Do Business With You 

Simplify the customer experience by optimizing processes and interfaces. Streamline account opening, loan applications, and other banking services with user-friendly digital platforms. Provide intuitive navigation, clear instructions, and easy-to-understand terms, allowing customers to conduct their banking activities seamlessly and conveniently.

Invest in Employee Training on Interpersonal Skills and Industry-Specific Knowledge 

Investing in comprehensive training for banking employees is vital. Focus on improving interpersonal skills to enhance customer interactions. Additionally, provide continuous training on industry-specific knowledge, regulatory changes, and new banking technologies. A well-trained workforce ensures better customer service, fosters trust and helps drive customer loyalty.

Empower Employees to Make Decisions 

Empowerment of banking employees involves granting them the authority to make decisions within defined boundaries. Establish clear guidelines and provide training to enable employees to handle customer concerns and complaints effectively. This autonomy not only speeds up issue resolution but also empowers employees, boosting their confidence and job satisfaction.

Use Technology to Improve Customer Interactions 

Leverage cutting-edge technology to enhance customer interactions. Implement AI-powered chatbots, automated email responses, and machine learning algorithms that can analyze customer interactions to improve service quality. Utilize customer relationship management (CRM) systems to track interactions and offer more personalized services based on historical data and preferences.

Provide a Self-Serve Platform for Customers 

Facilitate self-service options for customers through user-friendly online platforms and mobile applications. Allow customers to conduct routine transactions, access account information, and resolve common issues without needing assistance. A self-serve platform increases efficiency and customer satisfaction while reducing the workload on support teams.

Measure and Track Customer Satisfaction 

Implement mechanisms to measure and track customer satisfaction through regular surveys, feedback forms, and Net Promoter Scores (NPS). Analyze this feedback to identify areas for improvement and tailor strategies accordingly. Continuous monitoring of customer satisfaction helps maintain high service standards and enables timely adjustments to enhance the overall customer experience.

Improve Contact Center Operations in Banking 

To enhance contact center operations in banking, streamline processes, optimize staffing levels, and implement advanced call-routing systems. Utilize data analytics to predict peak call times and adjust staffing accordingly, ensuring efficient call handling. Provide comprehensive training to contact center agents, focusing on effective communication, problem resolution, and product knowledge to improve customer interactions.

Add AI and Conversational Experience to Customer Service 

Integrate AI and conversational experiences into customer service in banking by deploying AI-powered chatbots and virtual assistants. These AI systems can handle routine inquiries, guide customers through processes, and offer personalized recommendations. Additionally, incorporate natural language processing to enhance the conversational aspect, making interactions more intuitive and engaging for customers. Continuously refine and update these AI systems based on customer feedback and evolving technological advancements to provide a cutting-edge customer service experience.

The Role of Technology in Enhancing Customer Service in Banking

Technology has become an essential tool for enhancing customer service in the banking industry. With the rise of digital solutions, customers now expect faster, more convenient, and personalized service. Banks that fail to leverage technology risk falling behind their competitors and losing customers.

Chatbots and AI-Powered Customer Service Tools

One of the most significant technological advancements in customer service in Banking is the use of chatbots and conversational AI platforms . Chatbots are digital assistants that use natural language processing to respond to customer queries and provide support 24/7. They can handle a broad range of inquiries, from account balance checks to product recommendations, without the need for human intervention. AI-powered solutions like conversational AI in lending & banking , on the other hand, can analyze vast amounts of customer data to provide personalized recommendations and insights.

Example: TD Bank: New chatbot , dedicated social media team, a mobile app that allows customers to manage their accounts and resolve issues quickly and easily.

Both chatbots and AI-powered tools can enhance customer service in lending in several ways. They can reduce wait times for customers, provide instant feedback, and improve the overall quality of service. Additionally, they can free up employees to focus on more complex tasks that require human intervention.

Mobile Banking Apps

Mobile banking apps are another tool that can improve customer service in the lending industry. With these apps, customers can access their accounts, make transactions, and manage their finances from anywhere, at any time. Mobile banking apps can significantly enhance the customer experience by providing convenience, speed, and accessibility.

Moreover, mobile banking apps can offer additional features that can improve customer service. For example, some apps provide financial management tools that help customers track their spending and savings. Others offer security features such as two-factor authentication and biometric scanning, which can improve the safety of customer accounts.

Example: Citibank: Ability to schedule appointments with customer service in lending representatives, receive assistance through multiple channels, and use the Citi Mobile app to deposit checks, transfer funds, and pay bills.

AI-Powered Text Messaging or SMS

AI-powered text messaging or SMS in banking & financial services enhances customer service by offering immediate, 24/7 support and delivering essential information directly to customers' mobile devices. For instance, banks can use AI to send real-time transaction alerts, security notifications, and account balance updates via SMS, ensuring customers are informed and can quickly respond to any unusual activity. AI can also analyze customer data to send personalized offers, such as loan or savings account promotions, further improving customer engagement and satisfaction. In a real-life example, many banks use AI-powered text messages to send one-time passwords (OTPs) for two-factor authentication, ensuring secure access to online banking and reducing the risk of fraud.

Another practical use of AI-powered text messaging is sending payment reminders and due date notifications, helping customers stay on top of their financial commitments and reducing the number of late payments.

10+ years ago, the main use case for messaging/text was the ability to send one-time passwords or simple notifications to the user. Today’s user expects to complete entire workflows on messaging-based channels. This could be as complex as originating a loan or as simple as making a payment. App0 is one such conversational AI platform built for financial services that enables lessees, & customers of financial institutions to complete entire transactions using simple text messaging.

Looking to reduce the back & forth communication during origination and for customer service in banking? Request demo with App0 to know AI can help financial institutions reduce time taken to close deals, onboard customers faster & for better customer service.

Banking Process Automation

Automation plays a significant role in enhancing customer service in banking by streamlining processes, reducing human errors, and expediting services such as commercial lending and loan origination. In commercial lending, automation tools can assess applicants' financial data, creditworthiness, and risk factors more quickly and accurately than manual underwriting. This leads to faster loan approvals and, consequently, improved customer satisfaction. Real-life examples include banks like JPMorgan Chase, which utilizes advanced commercial lending automation systems to speed up loan origination processes and provide better service to businesses.

Similarly, in loan origination, automation can simplify the application process, verify applicant information, and assess credit risk swiftly. For instance, Quicken Loans' Rocket Mortgage uses automation to allow customers to complete their mortgage applications entirely online, with real-time status updates and document submission. Automating loan origination not only speeds up the loan origination process but also offers a more convenient and responsive experience for customers, making it a valuable tool for enhancing customer service in the banking sector.

Importance of Feedback and Complaint Resolution in Customer Service in Banking in 2024

Providing excellent customer service is critical for financial institutions to retain customers and maintain their reputation. One of the most important aspects of customer service in Banking is gathering feedback and effectively addressing customer complaints.

Customer feedback allows banks to understand their customers' needs and preferences better. By gathering feedback, banks can identify areas for improvement and proactively address potential issues before they become significant problems.

Complaint resolution is equally important in customer service. When customers have complaints, they want them to be addressed quickly and efficiently. Failure to handle complaints effectively can result in dissatisfied customers, negative reviews, and even legal action.

Therefore, banks need to have a robust feedback and complaint resolution system in place to enhance the customer experience.

Importance of Proactive Approach to Complaint Resolution

Banks should take a proactive approach to complaint resolution. This means identifying potential issues before they escalate and reaching out to customers to offer assistance before they have a chance to lodge a formal complaint.

By being proactive, banks can demonstrate that they value their customers and are committed to providing excellent service. It also allows them to solve problems before they become significant issues, reducing the likelihood of negative reviews and reputational damage.

Benefits of Effective Feedback and Complaint Resolution Systems

Implementing effective feedback and complaint resolution systems can have several benefits for banks, including:

• Enhanced customer loyalty and retention
• Improved reputation and positive reviews
• Reduced legal risk
• Opportunities for process improvement and innovation

Banks should actively seek customer feedback and use it to improve their services continually. Additionally, complaints should be taken seriously and resolved quickly, with a focus on restoring customer trust and satisfaction.

5 Examples of Excellent Customer Service in Banking in the US in 2024

1. chase bank: personalizing customer experience in banking.

Chase Bank uses data and analytics to personalize the customer experience. For example, they may offer customers personalized financial advice or recommend products and services that are tailored to their individual needs. Chase Bank also offers a variety of convenient banking options, such as mobile and online banking, as well as 24/7 customer support.

Unique selling points:

• Personalized financial advice
• Convenient banking options
• 24/7 customer support

2. Capital One: Providing Real-Time Support

Capital One offers real-time customer support through a variety of channels, including phone, chat, and social media. This allows customers to get help quickly and easily, whenever and wherever they need it. Capital One also has a strong focus on customer satisfaction, and they regularly survey their customers to get feedback on how they can improve their services.

• Real-time customer support
• Focus on customer satisfaction

3. Navy Federal Credit Union: Empowering Employees to Make Decisions

Navy Federal Credit Union empowers its employees to make decisions at the customer level. This means that employees have the authority to resolve customer issues quickly and efficiently, without having to go through layers of bureaucracy. Navy Federal Credit Union also offers a variety of competitive products and services, and they are known for their excellent customer service.

• Employees empowered to make decisions at the customer level
• Competitive products and services
• Excellent customer service

4. US Bank: Going Above and Beyond for Customers

US Bank is known for going above and beyond for its customers. For example, one customer reported that they were locked out of their account and needed to access their money to pay for a life-saving surgery. US Bank was able to verify the customer's identity and give them access to their money in a timely manner, even though it was a holiday weekend.

Unique selling point:

• Personalized Service: U.S. Bank aims to understand individual customer needs and provide tailored solutions, whether it's in personal banking, business banking, wealth management, or other financial services.
• Innovative Technology: The bank invests in cutting-edge technology to offer customers convenient digital solutions and conversational banking experience, while maintaining a strong human touch in their interactions.
• Financial Expertise: U.S. Bank prides itself on the knowledge and expertise of its staff, who can assist customers with complex financial decisions and provide guidance beyond standard banking services.
• Community Involvement: U.S. Bank often engages in community initiatives and philanthropic efforts, reinforcing its commitment to not only serve customers but also the broader community.

5. PNC Bank: Offering Financial Education

PNC Bank offers a variety of financial education resources to its customers. These resources can help customers learn about budgeting, saving, investing, and other financial topics. PNC Bank also offers financial counseling services to customers who need help managing their finances.

• Offering financial education

All of the banks listed above offer excellent customer service in different ways. By personalizing the customer experience, providing real-time support, empowering employees to make decisions, going above and beyond for customers, and offering financial education, these banks are able to meet the needs of their customers and provide them with a positive banking experience.

Customer service is the heartbeat of the banking world, influencing customer satisfaction, trust, and overall success. Throughout this blog, we've explored its pivotal role, dissecting core elements, addressing challenges, and presenting innovative strategies to elevate financial services customer support. The evolving industry demands a proactive stance, incorporating tech advancements, empowering staff, and providing personalized experiences for every customer. Tackling hurdles like language barriers and complex processes requires a concerted effort to streamline operations and deliver unparalleled service.

By putting customer service at the forefront and embracing advanced technology, banks can reshape experiences and nurture enduring relationships. Acknowledging the value of feedback and complaint resolution underscores our dedication to continual improvement and customer-centricity. The showcased examples of outstanding customer service in banking serve as beacons of inspiration, illustrating the immense potential and significance of prioritizing exceptional service in our sector. Our journey toward customer service excellence is ongoing, fundamental to thriving in a competitive banking landscape and, above all, exceeding customer expectations.

If you're looking forward to power your customer support in banking using conversational AI , we suggest you check out App0 .

App0 serves as a no-code, conversational AI solution designed to streamline essential aspects of customer communication during all the stages of customer interactions within banking, financial institutions, and fintech sectors. Prominent players in the financial services industry rely on App0 to enhance their AI-driven customer onboarding processes.

Our platform provides:

• Seamless integration with backend systems without the need for coding.
• Empowerment of business teams to engage with customers.
• Elimination of the reliance on developers for its operation.

Request a demo with App0 today and embark on a journey towards streamlined workflows and enriched client interactions.

Looking to reduce the back & forth communication during origination and client onboarding in banking? Request demo with App0 to know AI can help financial institutions reduce time taken to close deals & resolve customer queries faster using AI and provide superior customer service.

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Services in Banks: Strategies and Plans Essay

Introduction, literature review, body of the paper: services in banks, bank strategies used to attract and satisfy clients’ needs, new plans for the future.

Services play an extremely essential role in political, economic and social aspects. It is not possible to imagine people’s life without personal, government, business, financial and other services. On a state economics level, service sector is one of the most reliable parts of country GDP. Mutually beneficial service practice strengthens not only interpersonal, but international relationships, as well. Every day, customers want to satisfy their needs from a service provider.

Naturally, the role of bank services in the context of state economics and business can not be underestimated. Bank operations influence macro-economic indices and welfare of society. Worldly recognized first-rate banks of the world, located in Switzerland, the UK, the USA, Japan, France, etc. attract their clients with many-years experience, good reputation, reliability and safety of bank services and operation. Such banks use effective strategies to achieve the customer satisfaction. The aim of the present essay is to reveal the multifaceted nature of bank services through understanding bank strategies and examining the experience of specific banks.

The role of services in people’s life is great. All services are performed for a customer, called to provide his life with comfort, satisfying his needs. Services support and facilitate customer personal life. The essence of a service is to help and do work for someone. Mutually beneficial service providing has become the basis for business, trade, interpersonal and international relationships. There are many people employed in services. According to some researchers, in 2005, there were about 80 % of people in the USA involved in the service sector. The indices of another countries are also notably high: the UK – 77%, Canada – 76%, Germany – 68, 5%, etc. (Fitzsimmons, & Fitzsimmons, 2008). As one may see, services are appreciated and demanded by people.

In the history of human civilization, economic evolution has proved favourable environment created by services. A service offers commodity, and performs delivery function (on customer demand). It has an intangible nature, and customized attribute. Any service should be directed to benefits of both a client (buyer) and a provider (seller). Information technology and innovations are the main sources of service sector growth (Fitzsimmons, & Fitzsimmons, 2008).

Banking and bank services have been in the scope of interest of many researchers. For example, Mullineux and Murinde (2003) dedicated their book to the problem of international banking. Mishra (2010) examined a bank in the context of microeconomics and macroeconomics, and the essence of the financial system, where a bank plays an exceptionally essential role.

Analyzing the works of these and other relevant researchers, one may see that a bank is a complex and unique financial institution that performs numerous functions, and provides a wide range of services to its clients. Being a financial intermediary, a bank can be central (issues governmental money and regulates the money supply), commercial (accepts deposits and channels them into landing activities with the help of capital markets), and savings one (receives customer savings accounts, and pays interest to depositors). In addition, most of people have become clients of retail bank, as it provides its services to general public. A modern bank has so many functions that it is difficult to enumerate them all. In general, a bank “accepts deposits from the public, makes fund available to those who need them, and helps in remittance of money from one place to another” (Mishra, 2010, p. 181.). In other words, a bank deals with money and credit in a different way. This is the main essence of commercial banking.

Bank strategies were in the scope of the researchers, as well. For example, Botten and McManus (1999) described the British Internet-oriented strategy that gave bank clients to make financial operations in a cyberspace. Bank card system gave rise to application of other strategies.

Smart bank card applications technology contributes to electronic financial solutions. The network of Automated Teller Machines (ATM) allowed banks to dispense its services to customers through a Personal Identification number (PIN) and a magnetic card. ATM gave customers an opportunity to be engaged in “receiving and dispensing cash, funds transfer between accounts, balance enquiries, etc.” (Wonglimpiyarat, 2005, p. 6). At the same time, Visa, MasterCard and bank’s ATM networks serve to promote its brand, and spread its services among the world population.

Future of the bank services attracted researchers’ attention. In the 90s, it was evident, that globalization, commercialization and Internet expansion reflected on bank performance. Blery and Michalakapoulos (2006) believe that customer-oriented strategies will be applied in the future. Banks will tend to make services more effective, accessible, time-saving, quality and satisfying. New innovative technologies and additional Internet opportunities will contribute to this process.

Numerous functions of a bank predetermined the presence of range of services to its consumers. According to Mishra, it is possible to differentiate the following principal services. First, it accepts deposits: many people prefer saving their money in banks. This function helps people to earn interests and avoid theft. The presence of different types of accounts allow banks to attract clients’ savings: fixed (money is deposited for a fixed period of time; the rate of interest is high), current (serves businessmen and traders to make payments every day, making them pay incidental charges for a service), saving (encourages and mobilizes small savings with a low rate of interest; the number and amount of withdrawals is limited), recurring (encourages regular savings with interest of maturity of depositions; a rate of interest is relatively high), home safe (promotes saving habits under a special scheme), etc. deposit accounts (Mishra, 2010).

Second, a client may take advantage of loans, becoming debtor of a lending bank. However, loans are granted by a bank, depending on the creditworthiness of the borrowers (depends on clients yearly income). Among various types of loans, there are the following ones: money at call (a short period loan, provided for banks and other financial institutions), cash credit (given to a borrower against his current assets, and allows to withdraw money from time to time), overdraft (a borrower is allowed to withdraw more money than his deposits), discounting of bills of exchange (a popular and self-liquidating loan that gives an opportunity to pay the bill with the help of bank commission), and term loans (medium- and long-term loan that allow the amount to be either paid or credited to the borrower’s account; it must be repaid) (Mishra, 2010).

Credit creation is the following bank service: “a bank has the ability to create credit many times more than its deposits, and this ability to multiple credit creation depends on its cash-reserve ratio” (Mishra, 2010, p. 183). Credit creation is favoured by many people, because it allows to obtain good or service before payment. Promoting cheque system is the other bank service that became popular in the age of business transactions: “through a cheque, the depositor directs the banker to make payment to the payee” (Mishra, 2010, p. 183).

Also, a bank provides a customer with the following agency services: remittance of funds, payment and collection of credit instruments (bills of exchange, cheques, etc.), execution of standing orders (for example, a bank may pay rent on behalf of its clients), sale and purchasing of securities (bonds, stocks, shares, etc.), collection of dividends on shares, income tax consultancy, acting as executor and trustee (preserves its customers’ wills after their death), acting as a correspondent and representative (a bank may get traveller’s tickets, passports, and receive letters on clients’ behalf).

Besides, a bank provides its customers with general utility services: locker facility (valuables and important documents are kept for safe custody in a bank), traveller’s cheques (a customer may travell without the fear of loss and theft of money), letter of credit (used in foreign trade to certify customer’s creditworthiness), collection of statistics (a bank keep important information about country money, industry, commerce, trade, banking; publishes bulletins and journals with research articles), underwriting securities, gift cheques (of various denominations), acting as referee (for seeking information about its customers’ business reputation, financial position, and respectability), and foreign exchange business (by discounting foreign bills of exchange, a bank finances foreign trade) (Mishra, 2010).Nevertheless, people’s daily life suggest the idea that payment services are the most demanded services of a bank that meet customer needs every day.

One of the world financially strength banks in the world that satisfy its clients with practically all possible services, accessible for both general and elite public, is National Bank of Abu Dhabi (NBAD), founded in 1968 (Oxford Business Group, 2007). It has served as a central bank that actively participates in formation of the currency abroad. In 2005, its net profit equaled “$702, 42 m, return on quality of 43, 9% and total assets of $22, 76 bn” (Oxford Business Group, 2007, p. 97). Nationals who live outside the UAE have certain preferences in bank services. In general, the bank offers quick, reliable and secure services, giving an opportunity to take advantage from personal, corporate, and free Internet banking. Provision with personal bar-code, bank archive data, credit cards, currency exchange, time deposits, account opening, online trading are only one of possible services, available there (National Bank of Abu Dhabi, 2011). The researchers believe that

“NBAD is the chief provider of corporate services to business, the government, key public sector institutions, and major corporate groups. Corporate services include cash flow management, foreign exchange, and capital market products and assess management” (Oxford Business Group, 2007, p. 97).

Providing the mentioned services, NBAD keeps up the evolving international market, as well, because the considerable number of its clients is foreigners. This bank is able to meet the needs of growing market owing to its successful and effective development strategies. Also, NBAD has developed the advantageous system of international partnership. For example, Italia and Japan take part in corporate cross-border transactions. The bank has 23 overseas units and banking divisions located in Paris, Cairo, Oman, etc. that constituted the branch network that allow to provide with bank services customers from different corners of the world (Oxford Business Group, 2007).

In general, banking is an important service industry for all countries. In a bank, all customer-provider relationships and interactions are concentrated around services. For this reason, services are the most essential integrative elements of banking. Bank services are appreciated by general public, because they help people to achieve what they want: to buy a good or service, to transact money, to get borrower’s credit, etc. Providing a client with a service, a bank is interested in success, as well: a service produces benefit for a bank (difference between amount of deposits and credit percentage) and additional money supply that plays important role for state economy. When a client comes to a bank to get a certain service (for example, he wants to be accommodated with a loan), it should meet consumer expectations.

According to some researchers, it is reliability, responsiveness, assurance, empathy and tangibles (Fitzsimmons, & Fitzsimmons, 2008). Hence, a bank should have credibility; bear responsibility for services provided. Besides, a client should be assured that a bank is able to provide the needed service on favourable terms. A provider should understand the reason of the demanded service, and demonstrate empathy to the client (in case of a loan, it can be family’s financial necessity owing to back pay, unexpected constrained loss of money, a desire to buy a house or a car). Loan is tangible if a consumer get desirable amount of money before he can repay the debt.

There are many bank strategies called to attract new customers and satisfy their needs. One of them was applied in 1996 by the royal Bank of Scotland. It became the first bank in the UK that offered its clients bank services on the Internet. Since that time, direct banking by PC became possible. It was estimated that about 60 % of the UK population used to pay their bills and check the accounts using a home computer (Botten & McManus, 1999, p. 205). The Internet-oriented strategies of the UK banks allowed internet users to print statement, pill bills, transfer account data into home-banking software package, and take advantage from on-line services and PC banking services (including mobile commerce) (Botten & McManus, 1999).

Bank card innovations of the 1970s gave rise to new competitive strategies in the UK and USA banking sectors. However, the bank card on-line system was quickly extended across the world, because it made bank services (especially, payment ones) accessible and efficient; it notably contributed to electronic commerce that allow to make electronic transactions on the Internet, and buy a product. As one can see on the figure 1 (see appendices), on-line shopping has notable advantages (for example, timesaving capability), in comparison with traditional shopping, that meet modern consumer needs. However, there are some disadvantages, as well (for example, it requires delivery fee) (Fitzsimmons, & Fitzsimmons, 2008).

Nowadays, credit plastic cards, issued by banks, are used every day: they allow to purchase goods and services on credit. Besides, electronic cash currency system proved to be extremely convenient (Wonglimpiyarat, 2005). Credit card and electronic service strategies facilitate the social life: owing to these strategies, people easily make certain banking operations, get cash money from a card, and buy certain goods and services through mobile e-commerce.

Globalization, decreasing customer loyalty, economic volatility, resource outsourcing and other factors made banks to elaborate survival strategies for financial services. The essence of these strategies lies in the following processes: workforce performance improvement, cost reduction, revenue enhancement, return increase, cost-effective activities, integration of up-to-date technologies, etc.

Capitalization of banks plays an extremely important role in bank strategies. Retail banking strategies that practiced in Europe were adopted on the CEE ground. As the internet decreased the customers’ loyalty, banks needed special customer-oriented strategies called to increase bank clients’ loyalty. The loyalty programs that provided special benefits to customers were introduced. Traditionally, cooperative banks possessed “a strong loyalty tool, membership of the bank”.(Groeneveld & Wagemakers, 2004, p. 6).

Besides, Customer Relationship Membership (CRM) systems provide banks with good knowledge of their clients that allow banks to meet their needs. For this reason, many banks used to chose a niche-strategy, and focus on a specific customer need (real estate segment, for example). Retail banking is an extremely competitive industry, for this reason, CRM have certain priorities. Figure 2 (see appendices) shows that three top priorities are customer loyalty, profit growth and client satisfaction (PricewaterhouseCoopers, 2003).

Retail networks are used to sell all kinds of possible products: multidistribution provides with alternative options. For example, multi-channeling strategy, described as “selling products and servicing of clients with different channels, such as branches, ATMs, telephone and internet”, attracts clients with free choice, diversity of channels for different clients, and cost savings. (Groeneveld & Wagemakers, 2004, p. 7). The European largest internet bank, Rabobank, is a virtual distribution channel that offers transaction services on internet-mode technology that allows all users of mobile phones to make bank transaction operations.

Some banks offer other essential strategies that improve customer experience, leverage up-sell and cross-sell opportunities, and promote customer satisfaction. Some of retail bank strategies sound in the following manner: “facilitate integrated and consistent interactions across all channels”, “offer an inviting “Customer Front Door”, “integrate self-service with agent assistance”, etc. (Genesys, 2008, p. 3). On the whole, the strategies mentioned in this part of the essay, are beneficial for both banks and customers; moreover, all of them are called to attract and satisfy customer’s needs in a different way.

CRM systems have proved its effectiveness in aggressive bank competition, and will be used in the future. The strategic importance of CRM is obvious: it helps banks “to build long-lasting relationships with their customers and increase their profits through the right management system and the application of customer-focused strategies” (Blery & Michalakapoulos, 2006, p. 116). The Greek bank and other banks that use CRM system will be able to focus on most profitable customers with the help of efficient segmentation that corresponds to clients’ individual behaviour.

The commercial approach based not only the product but a client, as well, will help to satisfy and retain bank customers. Obviously, more banks will implement voice and phone banking services (loans, stock exchange transactions, etc.) and customer segmentation system (that responds to clients’ needs, interests, habits, etc.), and more clients will take advantage from synchronized networks, offered by banks (branch ATM, Interactive Voice Response, telephone center) (Blery & Michalakapoulos, 2006).

Even modern successful banks are concerned with plans for the future that will bring them more customers, more innovations, and better profit. The research of Oxford business group showed that development strategy of NBAD for the future is directed to expansion and positive innovative changes: installation of new ATM, opening of new branches, provision with first mobile phone banking service in the Middle East and North Africa region (Oxford Business Group, 2007).

Revolutionizing e-commerce is one of the reasons why banking system should be improved and transformed. Internet banking of the future will “reduce transaction costs, enhance customer service, increase the customer base and improve cross-selling opportunities” (Nath et al., 2001, p. 21). The phenomenon of Internet banking can not be underestimated, as it is future of modern society: the number of Internet and PC users grows every day. Online loans, brokerage services, bill payment will be popular clients’ banking activities in cheap cyberspace of electronic banks. Additional and expanded online bank services will be available to clients in private and business life. In addition, “banks are adding real-time loan applications, the ability to make Individual Retirement Account investments, and the opportunity to trade stocks through their web sites” (Nath et al., 2001, p. 26). Thus, the concept of “one-stop shopping” will be wide spread in the future.

Taking into consideration all the information mentioned above, one can make the following conclusion. Bank services serve for the benefit of people, engaged in financial relationship, commerce, business, and other activities. Owing to a great variety of bank services, a customer may deposit, save, transact, exchange, loan money, get a credit card, purchase goods and service via Internet, etc. There are many effective, development and competitive bank strategies used to attract and satisfy clients: customer-oriented strategies, electronic service strategies (Internet-oriented, e-commerce), retail banking strategies (multi-channeling), etc. However, successful future for banks consists in improved, expanded and quality e-banking services that serve for the customer’s benefit in the commerce, business and private life, customer segmentation, increasing and improving clients’ opportunities.

Blery, E., & Michalakapoulos, M. (2006). Customer relationship management: a case study of a Greek bank. Journal of Financial Services Marketing, 11 (2), (pp. 116-124). Web.

Botten, N., & McManus, C. (1999). Competitive Strategies for Service Organizations. Basingstoke, UK: Purdue University Press.

Fitzsimmons, F., & Fitzsimmons, M. (2008). Service Management: Operations, Strategy, and Information Technology (6 th ed.). New York, NY: McGraw-Hill.

Genesys. (2008). Industry strategy guide: customer service strategies for the retail banking industry. Web.

Groeneveld, J., & Wagemakers, J. (2004). Retail bank strategies in Europe. Economic Research Department. Web.

Lele, U. (2000). The World Bank Forest Strategy: Sticking the Right Balance. Washington, DC: World Bank Publications.

Mishra, S. (2010). Engineering Economics and Costing. Philadelphia, PA: PHI Learning.

Mullineux, A., & Murinde, V. (2003). Handbook of International Banking. Cheltenham, UK: Edward Elgar Publishing.

Nath, R., Schrick, P., & Parzinger, M. (2001). Bankers’ perspective on Internet banking . E-Service Journal, 1 (1), (pp. 21-36). Web.

National Bank of Abu Dhabi. Official Website. Web.

Oxford Business Group. (2007). The Report: Abu Dhabi 2007. Dubai, UAE: Oxford Business Group.

PricewaterhouseCoopers. (2003). Tackling the key issues in banking and capital markets. Web.

Wonglimpiyarat, J. (2005). Strategies of Competition in the Bank Card Business: Innovation Management in a Complex Economic Environment. Brighton, BN: Sussex Academic Press.

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8 Key Ways to Improve Customer Service in Banks

Virtual Briefing: High Performance Member Experience in Credit Unions

High Performance Member Experience in Credit Unions

Customer experience is a key — if not the key — competitive differentiator not only for the financial services industry, but across all industries. The numbers prove it:

• 84% percent of businesses  that focus on enhancing the customer experience report an increase in revenue; another 92% report increased customer loyalty
• A 1-point improvement in Forrester’s CX Index score can yield  $19 billion more assets  under management for the average multichannel brokerage
• Businesses that prioritize the customer experience achieve an average  20% increase in employee engagement

In today’s technology-driven world, there is no shortage of opportunities for banks and credit unions to innovate and improve the customer experience, starting with customer service. You see, customer service is a vital component of a quality customer experience because it directly impacts how your customers engage with your organization. Customer service failures, such as an unpleasant interaction with a live service representative or a failure to address a customer’s pressing need, can easily become a black mark on a customer’s impression of your bank and sour the entire customer experience. To that end, it’s imperative that you not only look for ways to improve customer service in banks but to completely exceed customer service expectations.

Let’s get started.

1. Promote Financial Literacy Through Customer Education

According to a recent study from the Raddon Research Institute, financially literate customers are  more profitable  because “they are credit-driven and have a higher usage of depository products.” That said, most Americans overestimate their financial literacy and are aware of surprisingly few financial literary resources, which means banks are perfectly positioned to step in and educate customers on financial literacy and profit from increased patronage in the process.

There are any number of ways to structure your financial literacy program, from online educational materials made available through your mobile banking application (more on the subject of mobile banking apps later) to in-house financial advisors who can walk customers through different scenarios, such as buying their first home or saving for retirement, at branch locations. Community banks and credit unions have  found great success  hosting educational workshops and fairs, getting involved in community outreach, and partnering with local schools and colleges to develop financial literacy curriculum for classrooms. This last item not only empowers younger generations to make smarter financial decisions but also comes with the added benefit of enabling banks to engage with prospective future customers. Even in our technology-driven society, customers still value face-to-face interaction, so it’s imperative to capitalize on every opportunity to engage with customers through human channels.

Developing a financial literacy program is an excellent way to improve customer service in banks; the  American Bankers Association  and the  National Financial Educators Council  provide excellent primers to help you get started. If developing your own program seems too tall an order, there are plenty of pre-existing programs you can recommend to customers.

2. Become a Trusted Advisor to Small Business Customers

The 2008 economic recession has, perhaps, made some small business customers more wary of banks — after all, small businesses felt the effects of the recession more severely than large firms, with as many as  170,000 small businesses  shuttering between 2008 and 2010, alone.

Over 10 years later, those small businesses that were able to survive the financial crisis are still reeling from employee layoffs, slashed spending, and stalled plans for expansion. According to figures from the  U.S. Small Business Administration , “The amount of small business loan originations plummeted by more than half during the crisis and has seen only a very limited recovery post-crisis, leaving small business loan originations down 40 percent from pre-crisis levels.”

We mention all of this to acknowledge that the way small businesses interact with banks has changed substantially. Gone are the days when a small business owner would confidently walk into their local bank in search of a loan; the small business owner of today is savvier, knows that they must be discerning, and expects to be courted by banks rather than the other way around.

In order to earn small business owners’ trust and loyalty, your bank must transition from lender to financial advisor by offering holistic services designed to help small businesses grow. For example, you could:

The goal is to partner with small businesses in such a way that you’re not just a lender, but a trusted advisor that plays a key role in their long-term growth. It’s also imperative that you continue to deepen existing small business relationships to protect this segment from moving to fintech and other digital competitors, such as Amazon or Facebook. In order to do so, you’ll need to consider how small business banking interactions need to change in order to fully leverage the possibilities of new technology.

3. Make Contextual Data a Core Component of Your Customer Service Strategy

With fintech firms such as  Stripe ,  SoFi , and  Avant  edging in on their market share, legacy financial institutions must evolve or die — and that means embracing the strategies that made these startups successful in the first place. One thing that fintech firms do exceptionally well — which should prompt traditional banks and credit unions to take notice — is leverage contextual data. Contextual data refers to any information that provides valuable context to a person or event.

Contextual data can be used to identify behavioral patterns and causal relationships, which banks can then use to inform and enrich the customer experience. In fact, contextual data can be used to improve customer service in the banking industry by enabling financial institutions to develop custom products and services tailored to the needs of each individual customer. For example, when faced with  the challenge of collecting money from clients , Finnish-based small business digital banking startup Holvi responded by developing an electronic invoicing system that enables customers to “create professional-looking digital invoices that fill out payment details automatically and sends alerts to your phone when it gets paid, keeping you in the know at all times.”

Your most valuable source of contextual data is your customer base. You can use customer relationship management (CRM) technology to collect information on just about anything and everything customer-related, including:

• Geographic location
• Major milestones (e.g. graduating from college, getting married)
• Purchasing preferences
• Spending habits
• Customer service history
• Social media activity

Learn How Hitachi Solutions Can Make Your Customer Data Work for You

Each piece of information you gather can be used to create a detailed profile that provides a 360-degree view of the customer. These profiles can then be stored within a central repository in your CRM, so employees can easily access them to make more informed decisions when fielding customer service requests, developing targeted marketing campaigns, upselling and cross-selling products, and so on (more on this later).

4. Develop a Truly Omnichannel Customer Experience

Although it would be easy to assume that, given how attached people are to their mobile devices, banking is on a trajectory to becoming entirely digital — but the numbers say otherwise. According to Reuters,  60% of Americans would still prefer to open a new checking account at a bank branch  rather than through digital channels; perhaps even more encouraging is that Accenture reports  that 86% of consumers intend to visit physical branch locations in the future , and desire face-to-face human interaction.

That isn’t to say, of course, that banks should prioritize improving branch locations over developing a digital strategy, but rather that it’s vital to blend traditional and digital components in order to create an omnichannel customer experience. To get an idea of the touchpoints involved in this type of experience, and how it improves customer service in banking, here’s how it works:

• Meet Alexis

As you can see, Alexis engaged with at least a dozen different touchpoints — some traditional, some digital — over the course of her customer journey. And although her story is fictional, it isn’t outside the realm of possibility: A survey of nearly 5,000 retail banking customers revealed  22 unique touchpoints . It’s imperative not only that you capitalize on as many of these touchpoints as possible to create a truly omnichannel experience, but also that you deliver exceptional customer experience every step of the way.

5. Provide Customers With Self-Service Opportunities

Customers: They’re doing it for themselves. Consumer self-service has become a booming trend across all industries, with  74% of customers  reporting that they’ve used a self-service support portal in the past;  another 81%  reported that they’ve attempted to resolve issues on their own before contacting a live service representative.

Despite it being a clear competitive differentiator, the financial services industry has been slower than others to implement self-service capabilities and best practices. As a result, many institutions are missing out on valuable opportunities to reduce call center volume, provide 24/7 support, and improve overall customer service in banking. How, then, can your organization take advantage of this growing trend?

The answer to that question lies in your mobile banking app. In a world in which everyone seems practically glued to their smartphone, the benefits of mobile banking aren’t lost on banks and credit unions. In fact, you’d be  hard-pressed  to find an institution that hasn’t developed its own branded mobile functionality. But just because mobile banking has become ubiquitous doesn’t mean that all banks are leveraging their applications as effectively as possible.

There are a few things you can do to take your mobile banking experience to the next level and turn your app into a one-stop self-service shop:

6. Set Your Employees up for Success

As prevalent as self-service has become, there will always be a place for live service representatives and a value for human interaction. Therefore, it’s in your best interest to ensure that each interaction is as positive as possible and contributes to an exceptional customer experience by equipping your frontline staff with the tools they need to succeed.

First and foremost, it’s imperative that you invest in comprehensive training. If that seems like an obvious piece of advice, that’s because it is — but it’s still worth mentioning because banking industry training techniques are rapidly evolving. From virtual simulations to gamification, technology  sits at the forefront of employee training  and ongoing education.

From there, the next step is to build an internal knowledge base that employees can refer to when they encounter questions they don’t know the answers to. This knowledge base should serve as a centralized repository for everything from policies and procedures to relevant industry regulations and should be well-organized and easy to navigate to prevent customers from waiting on answers any longer than is necessary. Be sure to regularly update your knowledge base so that it includes only the most accurate and relevant material.

The final key to empowering your employees (and one of the most valuable ways to improve customer service in banks) is to invest in the latest front-end and back-office banking technology. From a CRM solution that uses data-driven insights to provide a 360-degree view of the customer to security systems that leverage predictive analytics for fraud prevention and protection, a strong solutions ecosystem can be a real asset to your staff. Most importantly, be sure to integrate these systems so they have access to the same data, and so your service representatives don’t have to jump from one system to another when they field customer requests.

7. Solicit Customer Feedback Whenever Possible

No one knows your customers better than your customers, themselves. After all, the information stored inside your bank’s CRM can tell you all about who a customer is, and predictive analytics can make an educated guess about what they might do — but technology, no matter how innovative, can’t tell you what’s going on inside a customer’s head. It only makes sense, then, to tap into the invaluable resource that is your customer base by asking them for regular feedback; in doing so, you can gain insight into whether their needs are being sufficiently met, what products or services they’re interested in, what their goals for the future are, how their experience can be improved, and more.

There are any number of ways to solicit customer feedback, but the most practical approach is to establish check-ins across all touchpoints. For example, if a customer were to contact your bank’s call center with a service request, the representative responsible for processing that request might close out the call by asking whether the customer had any additional questions and whether they were satisfied with the service they received. Or, you might program a pop-up featuring a brief (think two to three questions) customer service survey to appear on your website after a customer has completed a transaction. Each piece of data you’re able to collect adds to the rich tapestry that is your customer base and can help your organization make more informed decisions that enhance the customer experience.

8. Be Flexible and Open to Change

The financial services landscape is in a constant state of flux, with new trends emerging every day. In order to ensure that your organization delivers the best customer experience possible, you need to keep your finger on the pulse of the industry and remain flexible to change — that means constantly looking for ways to improve, keeping your solution ecosystem integrated and current, and embracing  digital transformation . By listening to your customers, keeping an open mind, and making smart investments, you can guarantee exceptional customer service at your bank.

Speaking of smart investments, partnering with Hitachi Solutions is one of the smartest you can make. In addition to providing  intelligent solutions built on the Microsoft platform  and  data science expertise , we have the acumen to help you empower employees, optimize operations, transform your products, and reimagine the customer experience. And with decades of experience working with organizations in the financial services industry, we’re well-equipped to help you rise to any challenge.

For more information on how to improve customer service in banks or about what Hitachi Solutions has to offer,  contact us today .

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What banks and financial services should know for customer service

Banks and financial service providers play a key role in the everyday lives of customers. From online banking to savings accounts to financial planning, customer service is an integral part of every interaction between businesses and consumers in the banking industry.

In the past years, we’ve seen the financial industry evolve dramatically with the advent of technology. This has put a lot more emphasis on digital channels and online banking. As a result, customer service executives have needed to adapt, finding ways to stay connected with their customers via remote banking options.

Nonetheless, there is still a clear in-person component to banking customer service. Bank branches haven’t ceased to exist, and bank tellers should still be able to handle basic situations like money transactions and account inquiries. 

Whichever way they choose to engage, financial customers are looking for more than just somewhere to deposit checks or transfer funds when it comes to choosing their bank. They’ll want to see that their primary bank can provide them with different levels of service for various banking activities, as well as quality products.

As far as banks are concerned, an exceptional customer experience will increase loyalty among existing customers and attract new ones. That means it’s well worth investing efforts into customer service to add value to a financial services offering. We’ve outlined some pillars of great banking CX strategies to get you started.

1. Make a great first impression

Your first touchpoint is an opportunity to set the tone for a new customer relationship. If a customer is opening a checking account or signing on to investment products, this is likely to be an official onboarding process. However, onboarding sits at the crux of inefficiency for many banks. Due to large amounts of personal and legal data, it can take weeks to complete a process – especially when these are paper-based, manual processes.

It’s vital that firms look for ways to optimize onboarding, but few are taking the steps to do so. According to The Digital Banking Report, a shocking 47% of organizations don’t have a formalized onboarding process . With a lot to gain from using the onboarding process to make a first impression, enhancing processes and service standards for this stage of the customer journey is likely to help banks stand out.

47% of organizations don’t have a formalized onboarding process

2. Opt for positive language

Finances are often personal in nature, and can involve sensitive subjects. Therefore, using the right language when engaging with customers is vital. Customer service agents should aim to answer banking questions in simple language, offering the appropriate banking resources for any additional questions.

Language is also important when it comes to communications powered by artificial intelligence. If a bank uses chatbots to respond to certain customer requests, these interactions should also reflect the tone and attitude of a human customer service agent.

The best rule of thumb is to focus on the positive. Bank employees or human agents should emphasize what is in their power to do and, if they can’t resolve a request instantly, assert that a resolution is on its way.

3. Empower advisors

In today’s banking landscape, the importance of trust can’t be underestimated. Building trust means showing the customer that they are being heard, but this also requires banks to equip their advisors and agents to deliver an exceptional customer experience.

Just as customers might encounter issues with protocols around credit cards or debit cards, customer service employees run into problems when they can’t resolve a customer request due to company procedures and regulations. By listening to agents and giving them what they need, banks can empower customer service staff to solve problems on the spot. Banks should encourage them to make informed decisions that resolve issues, without having to get a manager’s permission first.

4. Choose your expertise

Innovative uses of technology have raised the bar for customer expectations. In today’s market, they want tailored advice to be accessible at any time.

That said, trying to provide quick and personalized guidance on all banking products is inefficient. Without a clear strategy,  this will lead to higher expenses and overworked advisors who are struggling to keep up with specific customer demands.

Therefore, a better approach is to streamline areas of expertise. Banks can train advisors with specialized competencies (like mortgage applications or estate planning) and employ technologies like algorithmic banking to help them serve customers better.

Technology can also help advisors to reach customers more easily. Channels like video conferencing and live chat offer a quicker way to engage, as well as a convenient solution for many customers. Banks should invest in helping customers learn about new technologies to encourage digital uptake, but leaving the door open to in-person interaction is also key.

5. Customize the entire customer journey

Technology offers banks ways to create a more customized customer journey. Many banks are leveraging the benefits of this, with 75% of financial organizations reporting that digital banking transformation is a top priority .

Online banking should be user-friendly and intuitive, but it’s also vital to offer multiple customer touchpoints and channels to engage with their banks on. These should be a mix of channels that are supported by mobile devices, as well as telephone services and video meetings for higher-touch interactions. Every banking journey will look slightly different, so it’s important to give customers flexibility to navigate evolving needs throughout the customer lifecycle. 

75% of financial organizations prioritized digital banking transformation in the past year

6. Fuse technology with a personal touch

Younger financial services customers are the main advocates for personalized services. As a group that are accustomed to seamless and hyperpersonalized big tech digital experiences delivered by Apple, Google and Amazon, they expect the same from financial services providers. 81% of Gen Z customers say that personalized features would deepen their connection with their primary bank. For customers over the age of 65, a further 47% express this preference .  

81% of Gen Z customers prefer personalized features for stronger bank connections

47% of customers over 65 share this preference

A growing number of customers are looking for a personal touch – and this is never more relevant than with the institutions they entrust with their money. Banks can meet both these demands by using technology to augment human expertise and build detailed profiles of customer preferences. Digital banking should aim to serve everyday needs while keeping customers connected to higher-touch engagements and personalized offers. 

7. Build trust

People must be able to trust those in charge of their finances. In a world where victims of fraud often turn to their banks for help, the biggest driver of financial trust is assurance that banks are protecting customer data, with between 14% and 18% of all ages ranking this as the most important determinant of trust.

Banks must build robust internal systems for managing vast amounts of customer data, and stay transparent about how they are managing and processing personal information. With many financial institutions using third-party channels to communicate with the customer base, it’s also worth outlining what bank customers can do to keep their information safe. For instance, if sharing particular data such as an account number, social security number or PIN isn’t secure on certain channels, make sure this is obvious to customers.

8. Gather customer feedback

Feedback is fuel for customer experience teams. Without it, it’s very difficult to ensure excellent customer service in banking, and ratings provide valuable insights into the customers’ experience of financial services.

The issue is that customers are often reluctant to spend time giving feedback. Constantly hounding customers to log into an online portal and fill out a complicated form is unlikely to foster much customer engagement.

A better approach is integrating links to surveys in emails to customers. It’s best to keep these short and relevant, and ideally, they should offer some kind of incentive or reward for providing information. That way, feedback processes can be mutually beneficial. 

9. Address your customers’ pain points

Unfortunately, the idea that one dissatisfied customer cancels out countless happy customers is no exaggeration. Knowing where you’re not delivering is a critical insight.

For many banks, the weaker points fall within digital service offerings, which are often newer additions to the customer experience. One survey showed that 64% of respondents felt that their mobile banking was inadequate for resolving customer queries quickly, sometimes failing to resolve them entirely.

Often, banks can rectify customer pain points by doing the basics well. The common frustration of a forgotten password is avoidable if banks are willing to invest in biometric technologies. It’s a small tweak that makes a huge difference to the overall customer experience.

Additionally, giving customers options for how they engage is likely to quell smaller issues. With collaboration tools such as live and asynchronous messengers, calls, and video meetings, banks can offer multiple paths to issue resolution. If the option for a conversation with a customer service team agent is there, people are likely to take it, which also helps to craft more meaningful interactions. 

10. Focus on retention

Customer loyalty is as important as new clients and a poor customer service experience can lead to high levels of churn. On the other hand, customers who feel satisfied with their experience will pick up momentum throughout the customer lifecycle, improving acquisition without any extra sales effort. Of customers who report feeling valued by their financial services provider, 92% plan to stay with the brand, 87% plan to purchase more , and 87% will advocate for the brand.

92% plan to stay with the brand

87% plan to purchase more

87% will advocate for the brand

So, what can banks do to improve customer retention rates ? The research suggests that improving communication is a critical aspect – which also means expanding preferred channels on mobile apps and beyond. Digital self-service in online banking portals shouldn’t be the only exposure a customer has to their chosen financial institution. An omnichannel customer experience can help banks encourage the high-touch interactions that are likely to improve retention. 

11. Put the customer first

Ultimately, exceptional customer service in banking depends on putting yourself in the customer’s shoes. New strategies should always start from the customer’s perspective, and this should be reflected in the indicators used. Focusing on average handle time (AHT) rather than customer-satisfaction scores, for example, puts the emphasis on productivity and costs rather than the overall customer experience.

Equally, customer-centricity won’t come without the right resources and workforce. Customer interests need to be represented at the highest level of an organization via Chief Customer Officer with direct access to the CEO. On the front lines, quality customer service agents and advisors should be properly trained and equipped with the right technology to deliver high-quality and relevant advice. The guiding service principle should always be putting the loyal customer’s needs over the financial services companies’ bottom lines.

Make every customer interaction count with Unblu

Unblu is a trusted technology partner of banking leaders worldwide, with over 160 deployments to date. Our conversational banking platform gives customer service agents and advisors the tools to deliver rapid, efficient, and personalized interactions. While fostering higher agent productivity and employee engagement, Unblu helps banks and industry leaders to deliver an unforgettable personalized experience that acquires and retains customers.

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4 examples of excellent customer service in banking

Today’s consumers expect excellent service from their bank. In fact, they rank it above low fees, product availability, and security features.

But what makes some customer service experiences shine a little brighter and stand apart from the rest? The magic usually happens when staff can deliver what the customer actually wants, when they really need it.

Pioneers in financial services are analyzing changing trends about how, when, and where today’s consumers want to bank. Technology is rapidly changing the way we work, communicate, and — of course — bank. Those who are steering the ship understand the importance of not only meeting consumers where they are today, but also planning ahead to proactively address new needs in the future. These financial service leaders are freeing up members of the team to deliver higher levels of service and tailor offers to make banking more personal. 

Some examples of how you can improve customer service in banking include: 

Delivering effective omnichannel experiences

• Using automation to improve efficiency

Making banking more personal

Adapting and responding to new needs.

Let’s dive further into these examples and take a closer look at what they can look like in practice.

In today’s highly digital environment, it’s easy to assume that digital-only banking is the way to go. However, today’s consumers want access to both digital and in-person touchpoints and expect the same level of service and polish from each. 

Effective omnichannel banking enables consumers to get the type of service that they are looking for — whether that’s self-serve or in person — through their preferred channel and at a time that suits them. It also enables banking support staff to get a single view of all customer interactions and progress. As a result, they can answer questions more effectively and efficiently. 

Example: How Navy Federal Credit Union is delivering anytime, anywhere banking

Virginia-based Navy Federal Credit Union exclusively serves the military, veterans, and their families — a segment to which it promises “once a member, always a member.” 

Great customer service is important in delivering on this promise, so to build on that, Navy Federal Union partnered with Blend. 

“As a lender, it’s really important for us to be consistent in the member service experience, so Blend has provided flexibility to our members,” explained Prabha KC, a mortgage loan officer at the company. “If the members are overseas they can still access their loan information.” 

Offering self-service channels was one way the company sought to improve its service delivery, not only facilitating 24/7 support but also freeing up its member service representatives to do more added value work on behalf of their members. 

As a result of the implementation, the number of self-service applications doubled and the time taken to submit an application decreased by 40% .

Using automation to free up quality time that can be spent on the customer

Banking is traditionally a time- and labor-intensive business with many manual steps and paper-based processes that can inhibit good customer service. Delays can happen regularly. In fact, on average it can take anywhere between 30-60 days to close on a mortgage.

Automation can help with this, allowing banking teams to more efficiently manage the key tasks they need to carry out for customers.  

For example, automation can improve service for a new applicant in several ways. Not only does it streamline the application process and overall journey thanks to automated data capture, validation, and pre-approvals, but it can also reduce the paper burden from banking teams, freeing up their time to focus on delivering added value to customers. 

Automated follow ups, meanwhile, can help ensure banking teams never miss a check in — and can help consumers satisfy conditions with fewer interactions. 

Returning customers also benefit from better service through automation. Information they have already provided in previous applications can not only be used to pre-fill new applications, but also for pre-approvals for products that meet their ever-evolving needs. 

Example: Putting automation into practice at Elements Financial

The team at Indianapolis-based credit union Elements Financial wanted to stay ahead of consumer expectations. Using the Blend platform to automate letters of explanation and connect assets — just a couple of ways in which Blend’s automation features can help to drive efficiency — the company has achieved its mission. Instead of applications taking three weeks, they now take 15-20 minutes. What’s more, they have shaved up to two hours off the time spent processing each loan because of automated follow-ups.

Lending Risk Manager Jamie Bonner explained the difference: “Prior to Blend I would email a member and say, ‘Hey, I still need this pay stub or an asset statement. I cannot send it over to processing until I have all of these things, and it will delay your time to close.’ Now all of that information is in the file right after they apply, and there is no delay.”

This streamlined process may be a contributing factor in the growth Elements Financial has experienced since leveraging Blend’s platform. The number of approved applications for products including deposit accounts and vehicle loans have increased by an average of 11%.

Despite the fact that more customers carry out their banking activities online than they did even two years ago, they still value human engagement — and have high expectations when it comes to service delivery. 

By investing in personalization, banks can deliver the white glove service that customers are looking for. In fact, the majority ( 72% ) of customers say that personalization is highly important in financial services today. 

Banking leaders achieve success by listening carefully to what customers have told them and delivering product offers, recommendations, and rates aligned with that information. To help in that delivery, they can adopt tools that apply artificial intelligence and process automation to make personalized offers at exactly the right moment.

Example: How BOK Financial is personifying success

Oklahoma-based BOK Financial turned to Blend to help it meet consumer demand for an intuitive and personalized banking experience.

By running consumer loans and mortgage applications through Blend, the company is delivering a tailored experience and, as a result, has seen completion rates more than triple. Moreover, the majority of volume now comes through digital channels — in stark contrast to the previous 15%. 

When banking teams prioritize their customers’ needs and preferences, they can deliver better service, and they can achieve more impactful customer relationships as a result.

One way of doing this is by staying on top of new trends and expectations and adding appropriate functionality in a fast and effective way. Another involves understanding a customers’ financial journey and using the data customers have provided them with in a careful way to predict or react to significant life events and offer support when it is most needed. 

The ability to quickly re-compose a product may be useful here. For example, a bank may discover that many of its customers have been impacted by a local storm. As a result, it could reposition one of its loans as a recovery product, and reach out with a personalized offer to those affected. 

How Amarillo National Bank is growing and evolving with Blend

At the height of the pandemic, many lenders, including Texas-based Amarillo National Bank (ANB), searched for ways to continue closing loans remotely. The value of hybrid and electronic closing methods quickly became clear. 

“We knew we had to move forward with the hybrid closings so that our customers didn’t have to go into the title companies to close their loans,” Debbie Bigelow, senior vice president, recalled

ANB’s team adopted Blend Close and has not looked back since. They will continue to adopt innovations that allow them to succeed in a rapidly changing operating environment.

How Blend is focused on helping you deliver excellent customer service

All of these success stories share something in common — each of the financial services companies involved has chosen to bolster their service delivery with our unified platform .

As a result, they have been able to have an incredible focus on the customer — something that is close to our hearts at Blend. In fact, we aim to bring a customer-first approach to everything we do. 

As a comprehensive solution for financial services providers, the Blend platform provides:

• A consistent consumer experience, from application to close and beyond
• In-built automation, bolstered by integrations with leading data providers
• Back-end tools to improve customization of products while freeing staff to deliver personalized experiences
• Improved digital agility to respond to new needs faster
• Learn how to cultivate primary relationships in the modern era
• Find out how your applications can exceed expectations

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Table of contents

A guide to customer service in banking and finance.

Customer service is the single most important factor in deciding whether a customer will stick with your bank or not.

The numbers support this. Research shows that 75% of a group of surveyed individuals would pick their banking service provider based on positive customer experience.

This clearly indicates that providing great customer service is critical for customer retention in banks and financial institutions. Yet, most of them fail to do so and face numerous challenges in serving their customers.

Finance and banking are all about trust. By delivering class-leading customer service and offering relevant and meaningful financial advice, financial institutions can go a long way in improving customer loyalty.

Providing customers with all the attention they need might seem difficult at first, primarily because it may seem like it needs more costs involving personnel and operations. However, in today’s technology-driven world, financial institutions can leverage technology to take the pressure off overburdened reps and save time and money.

But how can they leverage technology to improve customer service? Before we answer that, let us look at some of the common problems that plague customer service at financial institutions.

Table of Contents

Problems plaguing customer service in the banking and financial services sector today.

Financial institutions have amongst the highest customer acquisition costs in the industry today. Acquiring new customers can cost five times more than retaining existing ones. What’s more, is that they lose 75% of their customers within the first week.

It’s pretty evident that there is a gap between service delivery and customer expectations. So what’s causing these gaps? The answers might lie here.

1. Not being able to provide a personalized experience to every consumer

Most consumers (individuals and small businesses) see financial institutions as large, non-human entities that do not care about their individual problems. And they’re not entirely wrong. While a local bank branch might know their customers by name and provide personalized care, as banks grow into larger organized chains and move their services online, this becomes a challenge.

Financial matters are often sensitive, and every financial situation needs a tailored approach. So approaching every customer with the same generic set of questions and offering them the same set of financial solutions only makes you seem more like a machine.

Providing personalized service goes beyond just knowing a customer’s name and offering them tailored solutions. A study by Accenture shows that 48% of bank customers demand preferential treatment and rewards in exchange for their loyalty to your bank.

Leveraging AI (Artificial Intelligence) and ML (Machine Learning) algorithms can help banks understand their customers better and use their technology platforms – apps and websites – to deliver personalized services to their customers.

A financial software development company can play a vital role in improving customer service in the banking and finance sector, by providing innovative solutions that streamline operations and enhance user experience.

Further, this data can also be used to create reward programs tailored to suit every customer’s needs.

2. Slow service delivery and long wait times

Another common area where most financial institutions fail is service delivery and wait times. Many banks rely on outsourcing customer care to third-party service providers to cater to customers’ requests and problems.

However, adding a layer of outsourcing only adds more hurdles and delays to a bank’s customer service process.

More often than not, when a customer calls a bank for assistance, they have to navigate through lengthy IVRs and then wait in a queue to get connected to a customer service representative. And sometimes, these customer service reps might need to route your query back to the bank or to a specialized department which only adds to customers’ wait time and frustration.

To avoid losing customers, instead of outsourcing, financial institutions can leverage technology and automation to scale customer service and control costs.

For instance, a study conducted by Juniper showed that using chatbots for customer service in banks can cut costs by $0.70 per interaction. Given the volume of interactions, this can be a pretty big incentive for financial institutions.

3. Falling short when resolving customer problems

Customer service problems in finance are usually a lot more complex and long drawn out compared with most B2C scenarios.

As a result, customer service reps in banks see a larger volume of queries and a longer turnaround time. And these queries cover a broad range of problems, both simple and complex.

According to Hiver’s Customer Service Benchmark Report – 2021 , almost 50% of companies promise to resolve their customers’ issues in under 6 hours – those are really high standards to live up to!

Again, financial institutions can achieve fast response and resolution times by leveraging technology to solve more straightforward issues and take some of the load off their customer service reps.

For instance, they can:

While the use of technology can help solve a lot of the problems plaguing banks and financial institutions, there are several other ways that they can step up their customer service game.

We’ll take a deep dive into them in the next section.

Ways in which financial institutions can improve customer service

As we’ve mentioned above, the banking and financial industry suffers from a unique set of customer service issues. And thus, solving these problems also requires a tactical approach involving both technology and interpersonal skills.

1. Familiarizing all customer-facing employees with industry-specific knowledge

The first step in offering your customers a personalized experience is to have in-depth knowledge of the financial solutions you offer. This typically includes:

Not only should all customer-facing employees be aware of the full range of services offered, but they should also be well versed with industry trends and best practices to suggest what works best for their customers.

They should have the ability to ask their customers the right questions and gauge their needs appropriately to help them make better decisions.

Max Benz, CEO at BankingGeek adds:

“In order to ensure that all customer-facing bank employees are properly familiar with industry-specific knowledge, a few things need to happen. First, a comprehensive training program should be put in place that covers all aspects of the banking industry. This training should be mandatory for all new hires, and should also be made available to existing employees on an ongoing basis. Secondly, adequate resources should be made available to employees so that they can keep up with changes in the industry. This could include access to industry news sources, online courses , and so forth. Finally, regular performance reviews should include a check-in on industry knowledge so that any gaps can be identified and addressed. By taking these steps, banks can help to ensure that their employees are always up-to-date on the latest industry developments.”

2. Clarity and transparency in communication

We’ve said this before — the foundation of banking is trust. And the best way to establish trust is by communicating clearly and transparently. So, for starters, all employees in financial institutions must avoid jargon.

Talk to your customers like how you would with a friend or a family member. Then, double-check with them every time you’re having a conversation to make sure that they understand the implications of their financial decisions.

Maintain written records of conversations to avoid misunderstandings at a later time. Some areas of banking that can be confusing include:

Ensure that you walk the customer through these calculations in layperson’s terms and always be ready to explain it over and over again until they have full clarity.

3. Training all employees for interpersonal skills

Money is a sensitive topic for everyone, so having frontline employees with exceptional interpersonal skills is an asset for any financial institution.

You may find yourself in situations where you need to explain to a customer why their loan application has been denied or why a mortgage cannot be processed.

Though it’s important to be upfront and transparent in laying out options and providing explanations, one must display empathy and maintain the utmost composure. This will go a long way in helping customers feel reassured.

So banks and financial service providers must invest in training their employees to have them ready to navigate all possible scenarios. It may seem like the cost of training is eating away at the bank’s bottom line, but this will be made good by customers who stick with you because of good customer service.

4. Improving tech literacy among all customer-facing employees

A lot of interactions in banks today are driven by some kind of technology. Therefore, a good customer service rep should have an in-depth knowledge of the technology being used and guide the customer on using the technology platforms easily.

For example, instead of simply directing a customer to use an ATM/internet banking/mobile app, ask them first if they would like a walk-through of the platform. And if they do, then give them a simple personalized demo of the same.

One way for financial institutions to do this at scale while reducing the human intervention needed from the customer service team is to invest in video training guides and demos. Customers can watch these videos to familiarize themselves or troubleshoot the available technology platforms provided.

5. Making contextual data a part of your daily operations

Mortgage CRM is the way forward for banks and financial institutions to survive and thrive is to leverage contextual data. In a nutshell, contextual data refers to any form of information that provides valuable context about a person/organization and an event.

In banks and financial institutions, contextual data can be used to identify behavioral patterns and gauge customer loyalty, which they can then use to improve customer relationships. The data collected can also be used to create bespoke financial solutions specifically tailored to meet the needs of every customer.

For banks and financial institutions, their most valuable sources of contextual customer data are their helpdesks and CRM (customer relationship management) software .

While banks can use CRMs to track contact details such as phone number and email address, location, social media activity, and purchasing preferences of the customer, helpdesks or customer service software can be used to track their post-purchase interactions and their customer service requests.

Many helpdesk tools come with built-in analytics suites that can help you keep track of all your customer service KPIs without having to invest in another tool to track them.

Each piece of information can then be used to piece together a 360-degree view of the customer.

These customer profiles can help you tailor your financial products, upsell, cross-sell, create targeted marketing campaigns, and even design loyalty programs /provide preferential customer service.

6. Developing an omni-channel experience

It may be easy to assume that the banking world is also going mobile, given that we’re glued to our mobile phones most of the time. The numbers, however, tell a completely different story. According to this report by Reuters , 60% of Americans still prefer visiting their bank branch to open a new checking account rather than doing it via digital channels like a mobile app.

To add, according to Accenture , 86% of Americans desire face-to-face interaction and will continue to visit bank branches in the future.

This, of course, isn’t to say that banks should prioritize revamping their physical presence over their digital presence; rather, they should work towards optimizing all their data points.

A study conducted on 5000 banking customers revealed that every customer interfaces with an average of 22 touchpoints during their customer lifecycle. So, it’s only imperative that financial institutions capitalize on each of these 22 touchpoints and truly provide omnichannel customer service.

7. Allow your customers to self-serve

Self-service is the new customer service trend that is taking all industries by storm. To put this in context, studies have shown that 74% of customers across industries have used the self-service option for customer service. Further, 81% of customers have attempted to resolve issues independently using a product’s knowledge base before contacting a customer service rep. And despite this, the banking industry has been slow to adopt self-service.

With the adoption of the self-service model, banks can reduce call volumes, support their customers 24/7, reduce wait times, and improve the customer experience by a large margin.

The first step in adopting the self-service model is creating a comprehensive knowledge base that can help your customers find information, troubleshoot problems, and resolve them, all without your customer service team having to step in.

8. Always solicit customer feedback

No one can anticipate customer needs better than they themselves. After all, your customer data from your CRM and helpdesk tool can only tell you a part of the story. The other part lies with the customer. And no form of technology can magically help you read it.

It only makes sense to dive into this rich pool of information from your customer base by soliciting their feedback after every customer interaction. By doing this, you can gain insight into whether their needs are being sufficiently met, what financial products or services they’re interested in, their financial goals for the future, how their customer experience can be improved, and more.

One way for banks and financial institutions to collect customer feedback after every customer service interaction is to email them with simple CSAT (Customer Satisfaction) surveys . These surveys are extremely lightweight and useful. Moreover, they can be of immense help because they can capture immediate, action-oriented feedback. This feedback can, in turn, be analyzed via the customer service helpdesk tool.

Wrapping up: Being flexible and open to change

The financial services landscape is in constant flux, with new trends and regulatory measures emerging almost every day. To ensure that your financial institution delivers the best customer experience possible, you need to keep your finger on the pulse of the industry and remain flexible to change—that means constantly looking for ways to improve and embrace new technology. By listening to your customers, keeping an open mind, and making smart investments, you can guarantee exceptional customer service at your bank or financial institute.

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Customer Service in Banking: 6 Actionable Ways to Improve

Table of contents, the importance of customer service in banking and financial services, 1. gather data from your existing customers, 2. map out your customer journey, 3. measure and monitor current customer satisfaction, 4. analyse your data (and determine satisfaction drivers), 5. respond to (and resolve) individual customer feedback, 6. implement customer feedback software, the impact of excellent customer service in banking.

When it comes to which company we choose to look after our money, there have never been more options. While customers simply used to open an account with their nearest branch, today there are plenty of choices (including online and mobile banks) with new offerings springing up every year. So how can modern banks stand out from the crowd?

In banking, there are limited ways you can differentiate your service. Thanks to the nature of the industry, almost every business offers similar products, and regulations often mean there is not much room to compete on price. However, customer service is an area where banks can really shine.

The importance of an excellent customer experience in banking can’t be understated. After all, finances are an extremely personal topic for most people. Customers want to feel that they matter and their money is being well taken care of. 

With that in mind, here are six ways you can improve customer service in banking and financial services. Go ahead and click on any of the links and you’ll be taken straight to that section.

To improve your customer service, the first step is to be crystal clear on how things currently stand. Fortunately, you have a wealth of amazing resources at your fingertips. Who better to ask about your customer service than the customers you already have?

When you make the effort to ask, you may be surprised at just how many of your customers are happy to share their views. In fact, 77% of customers view companies more favourably if they ask for and apply customer feedback (1). There are a number of different methods you can use to collect feedback and improve customer service in banking. Here are a few of the most effective.

Today, surveys can be carried out in tons of different ways. Chatbots, SMS, emails, QR codes make it more convenient than ever for customers to share their feedback with just a few taps.

This technology allows you to capture feedback in real-time, for instance when a customer has just spoken to an advisor online or visited a branch. So if you’re not making the most of it, then it’s about time you start! 

Capturing their thoughts and feelings while the experience is still fresh in their minds can help you get more authentic feedback and a better grasp on customer satisfaction . However, sending surveys at any time will be hugely beneficial for gaining key customer insights .

Whether carried out in-person or via video call, interviews can help you get a more in-depth look into your customer feedback. Rather than working only with a set list of questions, the interview format allows you to dive deeper into any specific points of interest and gives the customer more freedom to express themselves. Interview transcripts can also be made and analysed for sentiment, giving you even more information to work with.

While reviews are primarily seen as a tool for other prospective customers, they can also be highly valuable in gleaning feedback for your company. When leaving a review, a customer is given free rein to share their honest opinion without the restrictions of pre-selected questions.

As a result, reviews can even bring things to your attention that you might not have otherwise been aware of. Reviews are another feedback tool where semantics analysis can be used to allow for greater customer insight.

Customer journey mapping is an insightful tool that pinpoints the series of events a customer goes through when experiencing your products. It clarifies their goals, the emotions they feel and any pain points or hesitations they encounter along the way.

By mapping out these events (known as touchpoints) you can understand your customers better. Not only that, but you can pinpoint areas where you can improve customer service in banking. Creating a customer journey map is a fairly in-depth process, but one that will hugely benefit your organisation. It starts with identifying your customer persona.

Almost all banking and financial institutions will have many different customer personas. For example, you may have personal bankers, business bankers and prospective homeowners looking for a mortgage. To start with, it’s a good idea to focus on just a couple of the most common personas and deal with them one at a time. As you grow your customer experience strategy, you can gradually add more customer journeys.

From there, you will detail each touchpoint your customer encounters, including everything from seeing an advert for your bank online to taking out a loan. Using real customer data, you can get clarity on how your customers feel at each and every one. You can also work out what’s stopping them from moving onto the next phase of the journey.

Pain points that impact customer experience in banking

The potential problems you encounter in your map are often referred to as customer pain points. These pain points can be extremely diverse, and some will have a bigger impact on the customer journey than others. However, in banking and financial services, there are a few key areas where you may want to focus your attention.

• Onboarding – Take a look at your processes for opening a new account or taking out a new product. How many steps are there? Do customers need to provide the same information more than once? Do they need to use multiple different channels to complete the process? Look for areas where you can simplify and improve the customer experience
• Authentication – How easy is it for customers to access their accounts? While authentication should be secure, it should also be straightforward and not require too many passwords and PINs. A balance between security and convenience is essential here.
• Navigation – Your customers should be able to easily find what they are looking on your website and app. The navigation should always be designed according to the customer’s needs, using a simple layout and clear, descriptive labels.
• Customer service – If a customer has an issue, it should be immediately clear how they can contact customer service. Ideally, there should also be different channels available for doing so (email, phone, live chat etc).

Once you start working through your customer journey map, you will likely identify various other areas with customer pain points. However, this list should give you a good place to start.

If you’d like to create a customer journey map, you can find more information and a step-by-step guide here: How a Customer Journey Map Helps you Offer Unique Experiences

Collecting feedback can go a long way in helping make more confident business decisions. But when it comes to customer satisfaction , how do you get the most accurate insight into your performance? This is where customer satisfaction metrics are invaluable.

Rather than provide you with a broad sense of your customers’ overall happiness, these methods give you an actual score to work with. Having a concrete figure allows you to monitor your customer satisfaction over time. 

The quality of your customer service is directly linked to customer satisfaction, and knowing your numbers enables you to act fast if things begin to slip. Again, you have a few options here. Let’s take a look at the most commonly used.

Net Promoter Score (NPS)

Simply put, the Net Promoter Score is a measure of customer loyalty. This method asks people how likely they are to recommend your company to others on a scale of 1 to 10. The responses are then used to group your customers into one of three categories:

• Promoters, enthusiast customers who will continue to use your services and promote them to others
• Passives , who are satisfied with your service but may be vulnerable to competitors
• Detractors , unhappy customers who may share negative feedback with others (and might be ready to jump ship)

Your overall Net Promoter Score is simply calculated by subtracting the percentage of detractors from the percentage of promoters.

It sounds simple, and it is. But don’t be fooled. Your NPS can have a huge impact on your company’s future success. Consider this: Only 31% of banking customers are promoters (2). Work on improving your score and you will immediately be ahead of the pack.

Customer Satisfaction Score (CSAT)

Like NPS, the Customer Satisfaction Score also uses a rating system numbered from 1 to 5 (very dissatisfied to very satisfied). However, CSAT is used to measure customer satisfaction after one interaction as opposed to customer satisfaction over time. This method is most commonly used after a customer engages directly with service staff, although its versatility allows it to be used in a wide range of different scenarios.

For example, say a banking customer had a question about their account and chose to speak to customer service via live chat on their banking app. At the end of that chat, a question could be: “How would you rate your recent experience with our Support Team?”

The CSAT can then be calculated in two ways. You can find an average of the scores given, or you can work out the percentage of those who answered with a 4 or 5 (satisfied and very satisfied).

NPS and CSAT are two of the most commonly used methods for measuring customer satisfaction. However, there are several other metrics that you can use. For a more in-depth look at them, you may like to download our handy guide, ‘ How to measure customer satisfaction KPI: NPS, CSAT, CES, & CLI ‘.

Analysing the information you gather is key to improving customer service in banking. Are there certain words or topics that come up time and time again? Do certain branches consistently perform worse or better than others? Are particular areas of your service bringing your scores down? These are all the kinds of questions you need to answer.

Where generating feedback gives you an idea of how satisfied your customers are, analysis helps you understand why . Part of this is identifying your customer satisfaction drivers.

When you know what drives satisfaction, you can prioritise those areas and improve your service to really impress your customers. This may seem hard to achieve, but it doesn’t need to be. Even small gestures like rewarding loyalty with lower fees or offering a cash incentive for new accounts can go a long way in enhancing the customer experience.

Similarly, when you know what drives dissatisfaction for your clients, you are better primed to take action. Rather than guessing at ways you can improve, using real data to inform your decisions will bring you much better results.

Customer service in banking (or any industry, for that matter) isn’t always perfect. Even with your best efforts, you’re always going to have some customers who are unhappy with their experience. While some will simply take their banking needs elsewhere, others will make their feedback known. Some will choose to do so on a public review platform.

The way you respond to this feedback can have a huge impact on your business. Why? Trust is an essential ingredient to customer satisfaction in banking. Crafting genuine, replies to reviews is one way of showing your customers that you care. This goes a long way in building the trust you need to create loyal customers and improve the customer experience in banking.

Responding to reviews, both positive and negative, holds tons of benefits for your business and online reputation . It can:

• Increase the number of reviews you receive, giving you even more valuable data to work with
• Prevent further negative reviews because people can see prior solutions for complaints similar to their own
• Stop you losing a customer by offering a solution to their problem (that you might not otherwise have known about)
• Change a potential customer’s perceptions of your bank or financial institution
• Help build relationships and show support to your existing customers

As we’ve illustrated throughout this article, collecting and analysing data is at the heart of improving customer service in banking. However, streamlining the process for even one location, let alone across different branches, is a big task. That’s why a Voice of the Customer platform is an invaluable asset for improved customer experience management.

For instance, think about our point of responding to customer feedback. If you get multiple new reviews each day for each of your branches, how will you make sure they each receive a response? Sure, you could manually check all the different review platforms each day. But who has time for that?

Here are a few of the tasks that the right software can take care of for you:

• Automatically send surveys designed to fit your business and customer needs
• Calculate and monitor the customer satisfaction metrics we described up above
• Collect more customer reviews, distribute them to the most important online platforms for your industry and display them on your website
• Analyse those reviews for semantics to better understand how your customers feel about your products and service
• Quickly and easily create reports that you can share across your company

And that is just the tip of the iceberg. With good customer feedback software in place, you are well-positioned to not only drastically improve customer service in banking but offer outstanding experiences to your customers.

What are the end goals for better customer service? We know that it is intrinsically linked to higher levels of customer satisfaction, but there are also tangible business goals that enhanced service can help to achieve. Let’s take a look at a few of them.

Lessen customer churn

A study from Temkin showed that 69% of customers who plan to leave their bank say the decision was down to poor service (3). And once a customer leaves, there’s nowhere else for them to go except straight to your competitors. By making efforts to better your customer service, you’ll make it easier to remedy customers’ problems before it’s too late.

Reduce costs

Did you know it’s 5x to 25x more expensive to obtain a new customer than it is to keep a current one (4)? A secondary benefit of reducing churn is the money you’ll save attracting new customers to your bank. Focussing more effort on your existing customers will have an undeniable impact on your bottom line.

Increase number of promoters

As we touched on earlier, your Net Promoter Score gives you a good indicator of customer loyalty. Those who give the highest scores are categorised as ‘promoters’ and essentially act as brand ambassadors, recommending your product to others. The better your service, the more promoters you are likely to have, and the more they will promote your business.

Boost product uptake

Banking customers will likely seek out numerous different products throughout their lifetime. They may start with a basic account, but what happens when they want a credit card, a personal loan or a mortgage? When you deliver excellent customer service, you give them fewer reasons to look elsewhere.

At its core, improving customer service starts with gaining a deep understanding of your customers want and needs. And to really tap into what drives your customers, you need to have good systems in place. Using the right tools will allow you to:

• Collect customer feedback and insights at the most important customer touchpoints
• Create robust feedback loops across multiple channels
• Get accurate, in-depth insight into your data through analysis and reporting 

Once you do this, you can create an exceptional customer experience , drive customer loyalty and bring about both short and long-term rewards for your business. If you’d like to discover how to achieve this in your bank or financial institution, why not schedule a no-obligation, free demo of our Voice of the Customer platform?

• Microsoft 2017 State of Global Customer Service Report
• Temkin 2018 Experience Ratings
• Bain & Company. Report: Prescription for cutting costs

Want to get Voice of the Customer software?

Schedule a free, personalised demo to see what advances your company can make with our customer feedback software.

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Customer Service Challenges in Banks and How to Overcome Them

Table of content

Customer service is the single most important factor in deciding whether a customer will stay with your bank or switch to another. Research suggests that up to 83% of customers could switch their service providers after a bad experience.

This clearly indicates how important it is to offer good customer service if you want to retain your customers. Though it is important, banks still face numerous challenges in serving their customers on a day-to-day basis.

If you fail to meet service standards and customer expectations, they may abandon your services. Moreover, they may also share their bad experiences with their friends and family.

We’re sure you don’t want to lose customers to bad service. So, let’s discuss some of the biggest customer service challenges that banks face and how you can overcome them.

Related article: How Banks Are Using Chatbots To Boost Their Business

Provide a personalized experience.

Most people see banks as these big, non-human entities that do not care about individual problems of their customers. While the staff at local bank branches might still know most regular customers by name and provide personalized services, doing so via online and mobile banking is the main challenge.

The online and mobile banking apps of most banks are, to a certain extent, standardized and sort of machine-like. For a question that is as simple as “am I eligible for a personal loan?,” you get a whole resource guide about how to find that out, instead of getting a direct answer. People these days are impatient and expect instant answers to such questions.

Banks need to incorporate personalization to cater to the specific needs and preferences of each of their customers. Using some form of artificial intelligence (AI) or machine learning on your website and mobile apps can help you deliver personalized experiences.

Chatbots powered by conversational AI are the simplest way to get started with this as they can meet your customers’ needs and can evolve and grow with each interaction. 

And it’s not just limited to knowing a customer’s name and providing tailored advice. Conversational AI makes it possible to create automated conversational journeys that direct the customer to exactly what they are looking for, providing even greater personalization. We explore this idea further in the next section.

Resolving queries instantly

When it comes to banking, customers often have a myriad of queries that require an instant response. For example, balance inquiries, card statements, card expiry, account upgrades, loan applications, etc.

While this can be solved through home banking, not all customers have the knowledge or resources to access it, resorting to other bank channels to get an answer. 

For their part, customer service executives are often loaded with too many requests and they fail to provide the required attention to each customer. This often leads to bad experiences and delayed responses.

As we mentioned in the previous point, the key is to be able to solve the problem instantly, providing the exact answer the customer needs. To solve this problem, you can use an automated solution such as a chatbot with conversational AI to automate simple, transactional queries. This will not only take the workload off your employees but also allow customers to resolve their queries conversationally and immediately. 

How to achieve this? Through the right integrations that connect your conversational AI bot with your banking stack. 

Long Waiting Times in Customer Services

Another common customer service challenge that banks face is long turnaround service time. Most banks rely on their customer support teams to cater to their customers’ requests and problems.

This may work well for startups that don’t have a big demand, but for most financial companies, it is almost impossible to resolve every customer query instantly.

More often than not, when a customer calls a bank’s customer care number, they have to wait in line to be able to talk to an executive. And, sometimes, the executives need to transfer their call to some specialized department that can handle the query better.

This delay in customer service delivery can cause unpleasant experiences for a lot of customers. And, most customers won’t give you another chance after a bad experience. They might simply switch their bank.

To avoid losing customers due to slow or poor customer service, you should use technology to speed up the process. A digital banking assistant or a conversational AI chatbot can tackle a significant share of customer queries for you. This will free up some time for your customer care executives.

Your executives can use this time to effectively handle complex issues as they no longer need to answer repetitive, mundane questions that can be answered by a chatbot.

A study by Juniper Research concluded that the use of conversational bots in the banking industry could save up to 862 man-hours by 2023. That equates to $7.3 million in operating costs. This could be a great incentive for banks to use bots to provide better customer service. 

Related article: A Complete Guide to Conversational AI for Banking Industry

Limited channels and separate strategies.

When we combine all of the customer service challenges for banks mentioned above, it translates into a poor customer experience. Today’s customers are spoilt for choice and don’t think twice before switching service providers, including banks. They expect high-quality service every single time they interact with a bank via any channel.

As such, it has become crucial for banks to provide great customer experiences via all channels and in all instances to keep their customers satisfied. This means that you need to provide a good experience and instantly resolve their problems, regardless of the channel a customer reaches you through.

This is not humanly possible and is too much to ask for, if you rely only on human resources. No matter how well-trained your employees are, there is always scope for error. However, technology can help you achieve higher success rate (if not 100%) in providing consistently good customer experiences across channels.

The use of bots with conversational AI can help you handle online queries via your website or mobile app instantly. As these bots run on preset algorithms, they can help you deliver omnichannel customer service solutions to keep your customers happy.

These chatbots can then forward or redirect complex customer requests to your human executives.

Low Customer Retention

As mentioned earlier, customers can switch to another bank if they don’t get the expected level of service. In fact, most people are more likely to leave a bank due to poor service rather than poor products. That’s why it is crucial for you to meet their expectations if you don’t want to lose them.

As we all know, loyal customers are more profitable for any business and retaining existing customers costs less than acquiring new ones. In fact, existing customers are 50% more likely to try new products and services from the bank than new customers.  

If you want to maintain a profitable business in the long run, you need to focus on customer retention. Providing good customer service is pivotal to achieving that. And you can do this by incorporating technology into your day-to-day service operations.

Conclusion about Customer Services in Banks

These are some of the most prominent customer service challenges that can cause your customers to leave your bank. The good part is that you can overcome a lot of these challenges in the banking industry by leveraging the right technology.

Using conversational AI chatbots, for example, can help you take the load off your customer service team. Your executives can focus on handling more complex queries and improving overall customer experience.

If you are interested in implementing this technology in your customer service, click here now to book a demo.

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Banking Service Sector Customer Care

Introduction.

Customer care service refers to “the provision of service to customers by business personnel before, during, and after the purchase of a product or service” (Mittal, Huppertz, and Khare 197). Customers are the businesses most valuable determinants of success.

Therefore, businesses have the perception that the quality of customer care service depends on employees’ ability to adjust their personalities to match those of guests and customers. Besides, customer care service is used to explain the organizational culture to guests who have little or no idea about a given business.

High-quality customer care service focuses more on prioritizing customer service as compared to product pricing, innovation, competitive advantage, and other factors. Hence, businesses that value customers offer training to their employees on customer service.

They are often found to value feedbacks from customers to improve in areas where clients may not be fully satisfied. The banking sector is a sensitive industry where customers demand high-quality service as required by the regulators. The sector comprises many players and thus customers can easily shift their business to the competitors. Hence, banks must provide high-quality customer care service to satisfy customers, retaining them, as well as attracting new clients.

The services expected by any customer from banking sector

The adage that ‘customer is the king’ is highly valued in the banking sector more than in any other business sector. Upon entering a banking hall, a customer has high expectations on the quality of customer service to be accorded. By nature, human beings are skeptical, and thus they are always on the lookout to find facts to confirm their doubts and create new ones. Hence, bank employees must be highly trained in the relevant skills that would enable them meet customer expectations through quality service.

Firstly, a customer expects a warm welcome from the bank employee offering the service. With that kind of knowledge, the bank employee must offer a warm welcome to the client by greetings and a humble request for the form of help to be accorded.

This move would help in creating a rapport between the banks and the client. In sales, a salesperson knows that s/he must create a good rapport with the potential client before selling the product or service. Winning a client’s trust demands requires one to invest in creating a good rapport with the customer. This aspect enables a client to trust the seller and the product or service to be sold before they are introduced.

Therefore, a bank employee should offer a warm welcome to the client for the customer to feel comfortable when giving a business to the bank.

Secondly, a customer expects the bank employee to offer quality time during service delivery. This aspect implies that a customer expects the bank employee to attend to his or her needs with great patience and enthusiasm. In some cases, the bank employees are overwhelmed due to the great number of customers. However, each customer is unique and s/he must be handled with unparalleled respect coupled with ensuring that s/he leaves the bank premises fully satisfied.

Thirdly, customers expect the bank to accord them privacy. Interestingly, people do not want to let others know the value of their wealth. Therefore, a bank must ensure that privacy is highly guaranteed to the customers to win their confidence and thus get business.

On the other hand, customers feel highly valued where a banker promises not to disclose their account information to third parties without their consent. Additionally, customers feel comfortable when the bank employees take them through policies and regulations that govern bank operations. This aspect builds the customers’ confidence in the bank since they value security and privacy of their money.

Fourthly, a bank customer demands clear information about the bank charges on their loans and interests on deposits. In the contemporary world, there have been numerous cases of hidden charges on the customers’ deposits.

This element has deteriorated the banks’ reputation in the market, and some banks have lost their customers to competitors. Therefore, to avoid such a risk, bank employees are required to give transparent information to the clients. Hence, a customer expects the bank to give the right information for the customer to make informed decisions before making any transaction.

Fifth, a customer would expect the bank employees to help in filling forms and other paperwork in the banking hall. Mostly, the aged and disabled customers need special assistance in the bank, and most banks have policies that govern customer care services. Therefore, employees are expected to accord special assistance to such kind of customers. On the contrary, in some situations, the bank employees must help customers to complete the required paperwork.

Sixth, a customer expects to find order in the banking hall. The banking hall is a highly esteemed premise where order must be maintained at high levels. Upon entering a banking hall, a customer may find a queue of other clients waiting to be served. Unfortunately, some customers are impatient, and thus they may decide to break protocols to their advantage. Therefore, to avoid such cases, queue strips are put in place to guide customers.

Additionally, most banks have security officers who maintain order in the queues. Moreover, banks have put in place well-designed seats for customers in the banking hall that helps to make customers comfortable as they wait to be served. Besides, the banking hall is a silent place where people go for private businesses and hence silence is maintained at high levels (Kumar 155).

Quality and Type of Service Expected

As earlier mentioned, the banking hall is a highly esteemed premise. A customer expects high levels of customer care service and guaranteed satisfaction before leaving the premises. A client expects various forms customer service in a bank. Banks provide different forms of financial services. The most common services are loans, payments, savings, ATM, money transfer, cash deposit and withdrawals, credit card, and others.

A customer wanting a loan expects the employees to listen to the need and grant the facility according to the set rules. That customer understands that bank will earn interest from the loan. Thus, there are minimal chances of the bank declining to offer the loan. The bank has the credit section for dealing with loans whereby the customer is directed to loan services. The credit officer looks into the customer’s bank statement to determine the credit worthiness and the highest amount of loan to be issued.

The credit officer communicates the bank’s position to the customer with ultimate care to avoid frustrations. The bank views the borrower as a trustworthy customer and thus it is obliged to give any assistance that a customer needs from the institution. This aspect implies that a bank must value the relationship with a customer and make decisions that would not damage that relationship.

On the other hand, a client is made to understand the bank’s position regarding the period that the two will be engaged in business. Besides, the customer is informed on the creditworthiness and s/he is advised on the loan amount and the payment methods that a bank is comfortable with based on the set guidelines. Afterward, the customer makes decisions after understanding the bank’s position and his or her creditworthiness.

In some case, banks have lost customers for offering loans with hidden charges. A customer feels cheated whenever the lending terms change without his or her knowledge. Therefore, to retain the customers, credit officers are trained on the bank charges on loans, and they are supposed to explain them to the customers before loans are issued. Hence, the credit officer ought to have good skills in customer care service to maintain the bank’s relationship with its customers.

Banks offer saving services. For a long time, money management has been institutionalized where banks are trusted with the people’s money for saving. The bank relies heavily on the customers’ savings for financing loans, investments, and liquidity. In the contemporary world, banks have introduced numerous types of current and saving accounts. The goal of this move is to distinguish between customers saving money on a long-term basis and those with short-term objectives. Saving accounts earn interest on deposits, and customers expect the bank to provide information about the rates as well as the duration of saving.

A bank employee should master different important customer service skills to have confidence when facing clients. Without such skilled employees, the bank runs the risk of losing clients due to poor customer services, which result in dissatisfaction.

The Customer Service Skills that Matter Most in Banks

Patience is one of the most critical virtues that a customer care service attendant must possess in the bank. As mentioned earlier, bank customers are unique, and they value privacy and satisfaction more than anything else does. Going by their values, it takes time to satisfy a customer whom the bank relies heavily on for business operations. A customer is the greatest resource to a bank. Therefore, a customer has unlimited service time since losing one to another bank is the greatest loss that can be incurred at any given time.

Customers need to be assured of the safety of their wealth as well as guaranteed privacy before they commit to do business with a bank. A customer care attendant or a banking staff serving the customer must take enough time with the client and ensure that they have a good business relationship.

Patience is not only important for the customer but also the bank. The time taken to discuss business gives a banker the opportunity to learn what customer values in a bank. Besides, customer service is an opportunity to gauge the bank’s strengths against other competitors in the industry.

Attentiveness

Attentiveness is the central element that is needed for effective communication between two parties. Attentiveness is the ability to listen to give a great service that would meet the needs of the customer. Attentiveness is a complement to patience because without patience one cannot be attentive. Customers feel agitated when served by inattentive personnel in a business.

In the contemporary world, attentiveness is one of the rarest virtues that people have and especially the young generation. People have become unnecessarily attached to technological devices where they interact with others via the social media thus making it difficult for them to concentrate. The majority of banks have policies that regulate the use of mobile phones in the banking hall to ensure that the staff members give customers the attention they deserve.

Besides, the world is fast changing resulting in a revolution in business innovations. Businesses seek information from customers to remain competitive in the industry. Therefore, to get information from customers, a business must first accord them the attention they deserve.

Customers are politely requested to give feedback through feedback systems. The bank managers then review the customers’ feedback and look for ways of bettering their services and products. Hence, customers must be given attention in any business that seeks ways to innovate and remain competitive in any industry including the banking sector.

Excellent Communication Skills

Customers are very demanding. They do not have time for business as opposed to investors. They demand quick services where communication is direct and brief. Therefore, a customer attendant would seek information from the clients before telling them anything about a business.

For instance, there could be a problem in the business, but that problem cannot be communicated to the customers until they have asked for something that cannot be delivered due to that problem. This aspect underscores why customer attendants pose the question ‘how may I help you’ before giving any information to the customers.

Additionally, the customer attendant must have effective communication skills that would make the customer comfortable even when services are not available. They ought to have welcoming faces and give genuine smiles to the customers. Body language is the most effective way of communicating problems. Customers would feel hopeful if a customer service attendant looks well composed and attentive to their needs.

Knowledge of the Product

Employees in any company should understand its products and services. Employees are the most effective marketing tools for any business in the contemporary world. After attracting potential customers to the business, employees handle them on behalf of business owners.

Therefore, there is a great need for employees to have a deep knowledge about products and services. This aspect helps in assisting customers who run into problems after purchasing products or services.

In the banking sector, customers are presented with numerous products and services inform of accounts that are tailored to different needs. Therefore, a customer attendant must possess deep knowledge about the various types of accounts coupled with how they are different from each other. This move would help them to offer effective assistance to new customers by directing them to accounts that are most suitable for them.

Additionally, if a customer runs into problems, a customer service attendant would be in a position to propose solutions to a customer without the need to refer them to senior managers. Hence, knowledge about products is necessary for saving time that a customer spends in a banking hall. Besides, this aspect helps to market different kinds of products to customers by establishing the best types of accounts tailored to their needs.

The ability to Use “Positive Language”

Positive language is one of the hardest skills to master in business. Customer care attendants should always see customers as their superiors and communicate hope when there is distress. This aspect is the cardinal rule of business-to-customer communication.

This assertion may appear as irrelevant, but the capacity to read a customer and understand the best language to use when communicating is a critical factor in making customers happy. Language is very critical in persuading customers. On the other hand, customers will paint a certain picture of a company depending on how they are talked to in their interactions with employees. For example, a customer enters the bank with an interest with services that cannot be offered because systems are being upgraded.

Without a positive language, a customer care attendant can say, “We cannot help you for now as the systems are being upgraded” and the customer leaves. With positive language, a customer care attendant should say, “that service will be available tomorrow because the systems are being upgraded” and the customer leaves with the hope that s/he will be served the following day.

Acting Skills

Some customers have difficult personalities, and thus a customer care attendant can never make them happy. Some of these customers demand services without regarding the needs of other people. In such situations, the customer care attendants need to retain their body language and pretend to be polite at all times. Every customer is important for the business even those that are rude and harsh (Bruce and Langdon 78).

Apparently, the most skeptical and critical individuals are the most valuable as they want to gather enough information before transacting, which means they may bring good business deals. Besides, such customers go to the most competitive businesses in any industry. Their criticism and skepticism provide solutions to problems and information about the need to innovate. Therefore, customer care attendants should handle such clients with the ultimate care that they deserve, which requires the best acting skills for times when situations run out of control.

Time Management Skills

Even though a customer care attendant should be patient and attentive when handling customers, there is a limit to the time taken by each customer. Different tasks have to be done as well as other customers waiting to be served. Therefore, a customer care attendant should ensure that some customers do not take more than the necessary time. The focus is on delivering efficient service within the shortest possible time. Hence, the need for the customer care attendant to have good communication skills that are focused on getting to know what exactly the customer wants.

The ability to “Read” Customers

In the contemporary world, things have greatly changed due to effects of technological innovations. Businesses are fast growing, and technology is helping in the achievement of the globalization of business activities. This aspect has resulted in businesses serving customers who cannot be seen or their voices heard.

Online business is fast growing around the world, and banks have ventured into online banking systems. Customer care attendants face challenges of communicating with clients on online platforms due to difficulties in establishing their physical behaviors and attitudes.

In such cases, customer care attendants are required to understand the customers’ behaviors through psychological methods. Hence, they should be trained on the basic principles of behavioral psychology that help in reading emotional state through the choice of words and speed of replying messages in the online platforms. An angry customer would use harsh words and give urgent replies while a happy customer would use sweet words and may not necessary reply quickly.

A Calming Presence

This attribute is close to acting skills but a perfect metaphor to describe it is ‘keeping cool’. In some situations, clients irritate their attendants and thus customer care attendant is required to keep calm. Whenever things get out of control, banks have policies whereby an attendant is allowed to leave and call for another bank staff to handle the client on his/her behalf. The customer can hardly notice why there has been a change in customer care personnel. This aspect helps to retain the customer as well as a good relationship with the bank.

Goal Oriented Focus

The ultimate goal of customer care service is to create a good relationship between the customer and the bank. A good relationship is established after making the customer satisfied with the quality of service. Hence, the customer care attendant focuses on getting the customer satisfied within the shortest possible time. Banks should have empowered employees who feel proud acting on the behalf of the bank to its customers.

This aspect enables the customer care attendants to be creative when handling clients and using persuasive language that lures customers into becoming loyal to the bank. As mentioned earlier, employees are the most effective tools of marketing. Therefore, customer care attendants are marketing agents of the bank since they are responsible for handling clients daily. Happy clients sometimes tip or thank the customer care attendants after service, which is a sign of satisfaction.

The ability to handle Surprises

At times, customer care attendants are faced with problems that are beyond their mandate. In such situations, the customer care attendant should have in mind the person who to refer the customer to within the shortest possible time. Most importantly, customers are impatient, and they always want to see their problems being addressed. Therefore, it is necessary to act hastily in seeking reference, which could be done through chatting tools as opposed to emails and messages. Besides, phone conversations can be used to save time. The greatest challenge in banks is the difficulties in letting non-staff inside of the banking office. Hence, customers must be attended to at the designated areas (Cook 20).

Persuasion Skills

In most cases, clients will make calls to inquire more about a certain product as opposed to complaining of something wrong with a product or service. In such cases, the customer care attendants become more of sales personnel, and they take those opportunities to persuade the clients. They should have good knowledge about the choices of words to use to persuade a customer into having confidence in the service or product they have purchased, or they want to purchase.

Customer care service has no shortcuts. Therefore, a customer care attendants must have a great willingness to do what should be done to provide services that are satisfactory to the clients. As mentioned before, the banking industry is highly competitive, and it often takes a little misunderstanding for a customer to opt for a competitor. Therefore, a customer care attendant must have tenacity when handling clients.

Closing Ability

A customer care attendant must have knowledge about when a conversation should end. In most cases, the closing comes when a customer is satisfied and thanked for calling. Effective closing shows the clients that a customer care attendant is caring about their welfare coupled with being focused on going on until things are right. Additionally, the customers feel proud that they are the one who determine when things are right before the closing (Wellington 64).

Willingness to Learn

Lastly, customer care attendants must uphold the virtue of continuous improvement in delivering quality service to the clients. This assertion implies that they do not know it all at any given time, but they are willing to learn something new to improve on service delivery. Banks are developing and introducing new products and services continually. Therefore, customer care attendants are faced with many questions about these products and services, and they must have answers for the clients.

The best and worst that can happen in banking for any customer

Leaving the premises a happy customer is the best thing that can happen to a bank client. Banks understand the welfare of their customers and in the recent years, they have developed products that are tailored to suit different forms of social welfare. Some products are most suitable for young people that help them to save their money as well as buy insurance covers against financial distress. In the case of financial misfortune, a customer rushes to the bank for help and after getting the right kind of products, they leave the bank happy after being accorded the needed assistance.

In the recent years, banks have been getting much involved in their customers’ social welfare. For instance, banks have implemented customer support policy that requires a bank to send birthday wishes to customers on their birthdays. Besides, some banks are issuing gifts to their customers during the festive seasons such as Christmas and New Year as a sign of appreciation for the business. Like insurance companies, banks are also issuing well wishes to their customers whenever they fall sick.

In the worst-case scenario, a customer leaves the bank premises unwilling to do business with the bank again in the future. Customer care service plays a major role in determining whether the customer will do the business with the bank in the future. The ultimate goal, as earlier mentioned, is to make a customer satisfied with the services. From the above skills, which are necessary for customer care service in the banking sector, it is evident that failure to be patient and attentive to the customer can lead to dissatisfaction (Gould 67).

However, the worst thing that could happen is making a customer feel inferior. This scenario could play out if a customer care attendant does not have the right communication skills. In some situations, communicating a problem could have much weight to the customer’s personality and ability depending on the choice of words that are used. Hence, the customer care attendants should ensure that they have the right communication skills coupled with being patient and attentive to the customers’ needs.

Quality Measurement Criteria for the Sector

The banks’ management teams need to measure the quality of customer care service in business at any given time. Businesses are quickly losing customers due to the lack of effective customer care service. Therefore, one way of retaining business is ensuring that there is good quality customer care service at any given time. Customers are the most valuable sources of information for the business. The business ought to take advantage of that by seeking information about the quality of customer service that they receive regarding that accorded by competitors.

Questionnaires are the most effective methods of getting information since they have privacy and they can be forwarded to the senior management without distorting the given information. After receiving service from a staff member, the bank managers should ensure that a customer gets a questionnaire for quality measurement purposes. The questionnaire should provide information about the rating of customer service, comments on areas that need to be improved, and the personality of staff. The filled questionnaires should then be put into closed boxes where only the senior managers have access.

Factors That Will Make the Service Better For both the Customer Bank

Internal factors.

Banks should have policies that govern the employees’ delivery of customer care service. The most effective method to accomplish this goal is the performance contracts that stipulate the required code of ethics for handling clients. Employees are the most valuable marketing agents for a business.

However, the freedom of employees does not guarantee a business success. To be on the safe side, a bank should have policies that govern the employees’ behaviors and attitudes towards customers. With strict policies in place, the issuance of questionnaires to customers should act as a measuring tool for the employees’ performance in the customer service attendance.

Additionally, banks should motivate employees by awarding and recognizing the best performance in customer care service. This move would help to create internal competition among employees whereby they focus on delivering high-quality customer care services to the customers. Hence, it would help in building a good relationship between the bank and customers.

Innovation is the ultimate solution to business problems in the contemporary world. Therefore, a bank should ensure that it has the latest up-to-date technologies in place to remain competitive in the industry. Besides, technology should be used to provide customer care service through automated messages to minimize the risks of customers getting dissatisfied with one-on-one customer care service.

External factors

There is a stiff competition among numerous players in the banking industry. The greatest fear that banks have is losing customers to competitors due to the limited chances of winning them back. Therefore, banks are investing heavily in technology and customer care service to remain competitive as well as retaining customers while attracting new ones.

However, competition is a positive factor for the business if taken positively. The bank ought to invest in competition by ensuring that it understands the business operations of competitors and investing in their improvement. Hence, the banks need to uphold continuous improvement strategies to remain competitive.

The most effective way of attaining competitive advantage is by investing heavily in retaining a good relationship with customers. Customers are an effective marketing tool and thus they would help to market the bank to their friends through their experiences.

The banking sector is one of the most competitive industries in the modern world. Customer care service is the most effective way of attaining a competitive advantage in the industry. Customers provide information that helps to attain competitive advantage.

Therefore, banks should ensure that employees are well trained to handle clients effectively and have right skills to make them feel satisfied before leaving the banking hall. Moreover, there should be policies that govern the employees’ performance to create a positive internal competition in customer service delivery.

Works Cited

Bruce, Andy, and Ken Langdon. Putting Customers First , London: Dorling Kindersley Limited, 2009. Print.

Cook, Sarah. Customer Care Excellence: How to Create an Effective Customer Focus , London: Kogan Page Publishers, 2010. Print.

Gould, Rennie. Creating the Strategy: Winning and Keeping Customers in B2B Markets , London: Kogan Page Publishers, 2012. Print.

Kumar, Sreenivas. Banking Sector and Human Resources: Changing Scenario , New Delhi: Discovery Publishing House, 2006. Print.

Mittal, Vikas, John Huppertz, and Adwait Khare. “Customer Complaining: The Role of Tie Strength and Information Control.” Journal of Retailing 84.2 (2008): 195-204. Print.

Wellington, Pat. Effective Customer Care , London: Kogan Page Publishers, 2010. Print.

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Home — Essay Samples — Business — Customer Relationships — Customer Service

Essays on Customer Service

Importance of writing an essay on customer service.

Writing an essay on customer service is important for several reasons. Firstly, it allows individuals to understand the significance of providing excellent customer service in any business or organization. Customer service is the backbone of any successful company, and it is crucial to educate individuals on the best practices for delivering exceptional service to customers.

Additionally, writing an essay on customer service helps individuals develop critical thinking and analytical skills. It requires them to research and gather information on various aspects of customer service, such as communication, problem-solving, and relationship-building. This process enhances their ability to think critically and make informed decisions when dealing with customers.

Furthermore, writing an essay on customer service encourages individuals to reflect on their own experiences as customers and as service providers. This self-reflection can lead to a better understanding of the challenges and opportunities that come with delivering exceptional customer service, and it can inspire individuals to improve their own customer service skills.

When writing an essay on customer service, it is essential to keep in mind a few tips to ensure the essay is effective and impactful:

• Research extensively to gather information from reliable sources about customer service best practices, case studies, and success stories.
• Organize the essay with a clear introduction, body paragraphs that discuss different aspects of customer service, and a strong conclusion that summarizes key points and offers recommendations for improvement.
• Provide real-life examples and anecdotes to illustrate the importance of excellent customer service and the impact it can have on a business or organization.
• Use clear and concise language to convey ideas and make the essay easy to understand for the audience.
• Include relevant data and statistics to support arguments and demonstrate the significance of customer service in driving customer satisfaction and loyalty.
• Edit and proofread the essay to ensure it is free of grammatical errors, typos, and inconsistencies.

In conclusion, writing an essay on customer service is important for raising awareness about the significance of providing exceptional service to customers, developing critical thinking and analytical skills, and promoting self-reflection. By following the tips mentioned above, individuals can write an insightful and impactful essay that highlights the importance of customer service in any business or organization.

What Makes a Good Customer Service Essay Topics

When it comes to choosing a topic for a customer service essay, it's important to consider what will engage and interest your audience. To brainstorm ideas, think about current trends in customer service, common challenges faced by customer service professionals, and innovative solutions to improve the customer experience. Consider topics that are relevant, thought-provoking, and have the potential to spark meaningful discussions. A good essay topic should also be well-researched, providing enough material for a comprehensive and informative essay.

Best Customer Service Essay Topics

• The impact of artificial intelligence on customer service
• The role of empathy in customer service interactions
• The importance of customer feedback in improving service quality
• Strategies for handling difficult customers
• The rise of self-service customer support options
• The impact of social media on customer service
• The future of customer service in a digital world
• The role of emotional intelligence in customer service
• Effective communication strategies for customer service professionals
• The importance of customer loyalty in business success
• The impact of globalization on customer service practices
• The role of customer service in building brand reputation
• The psychology of customer satisfaction
• The use of technology to personalize the customer experience
• The ethics of customer service
• The role of customer service in healthcare
• The impact of culture on customer service expectations
• The role of customer service in the hospitality industry
• The impact of customer service on customer retention
• The future of chatbots in customer service

Customer Service Essay Topics Prompts

• Imagine a world without customer service - what would it look like?
• Write a letter to a company praising their exceptional customer service
• Create a customer service training program for a new business
• Interview a customer service professional and write about their experiences
• Write a persuasive essay on the importance of investing in customer service training for businesses

Choosing the right customer service essay topic is crucial to creating a compelling and informative piece of writing. By considering current trends, challenges, and innovations in customer service, you can generate ideas that will engage and captivate your audience. With the right topic, you can create an essay that sheds light on important aspects of customer service and provides valuable insights for businesses and professionals in the industry.

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• Deadlines Met At Every Stage
• Unique And Plagiarism Free

Top banks offering 24/7 customer service

• Criteria for selection

Benefits of 24/7 customer support

Banks with 24/7 customer service.

Affiliate links for the products on this page are from partners that compensate us and terms apply to offers listed (see our advertiser disclosure with our list of partners for more details). However, our opinions are our own. See how we rate banking products to write unbiased product reviews.

• Several banks offer 24/7 customer service by phone or live chat.
• Other banks may have limited hours during the workweek or weekend.
• If you find it challenging to do banking tasks during business hours, consider changing banks.

Customer experience can significantly impact your overall banking experience. If you can't find time to visit a branch or call a bank during regular business hours, then it's going to be difficult to manage your money.

Thankfully, some banks make it easy to call or message the customer service center at any time of the day. Here's a list of banks that offer 24/7 customer support, and some of these institutions are even among the best banks .

1. Alliant Credit Union

No monthly service fess. NCUA Insured.

no monthly service fee

• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Earn interest
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. No minimum opening deposit
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. No monthly service fees
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. $20/month in out-of-network ATM fee refunds
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. No overdraft fees
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. No incoming wire transfer fee
• con icon Two crossed lines that form an 'X'. Compounds interest monthly, not daily
• con icon Two crossed lines that form an 'X'. $25 outgoing wire transfer fee

Alliant is one of the best credit unions out there, especially if you want to earn high interest rates on savings, checking, and certificates.

• Several ways to become a member; the easiest is to join Foster Care to Success (Alliant will cover your $5 membership fee)
• 80,000+ free ATMs
• Alliant does not charge overdraft fees; you can overdraw, but you will not pay a fee. You may also link checking to a savings account and select for funds to automatically transfer to cover overdrawn amount.
• Interest compounded monthly
• Federally insured by the NCUA

Standout feature: Alliant Credit Union pays high interest rates on savings, checking, and certificates.

How to contact customer support: Customer service representatives are available over the phone.

Alliant Credit Union Review

2. Ally Bank

Earn 4.25% Annual Percentage Yield with a $0 minimum account opening requirement

• Check mark icon A check mark. It indicates a confirmation of your intended interaction. High APY
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Savings buckets help you save for different goals
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Surprise savings transfers help you save extra money from your checking account
• con icon Two crossed lines that form an 'X'. No physical branch locations
• con icon Two crossed lines that form an 'X'. No way to deposit cash

The Ally High Yield Savings Account is a great option for anyone who wants savings tools to help save for specific financial goals, or prioritizes an account that doesn't charge standard bank fees.

• Create separate savings buckets in a savings account
• Link to your Ally checking account and enroll in surprise savings transfers to have extra money transferred to savings three times per week
• Interest compounded daily, paid monthly
• FDIC insured

Standout feature: Ally pays high interest rates on savings accounts and certificates.

How to contact customer support: Customer service representatives are available over the phone or through online chat.

Ally Bank Review

3. American Express Bank (Member FDIC)

Earn 4.30% Annual Percentage Yield (APY) with no account opening minimums, minimum balance requirement or monthly fees.

4.30% (as of 4/9/24)

• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Competitive APY
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. No minimum opening deposit or minimum account balance
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. 24/7 phone support
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. No excess transaction fee
• con icon Two crossed lines that form an 'X'. No mobile app for banking customers
• con icon Two crossed lines that form an 'X'. You must make a deposit within the first 60 days
• con icon Two crossed lines that form an 'X'. No live online chat
• Member FDIC
• 24/7 account access
• Earns interest daily, and posts to account monthly

Standout feature: The American Express® High Yield Savings Account is the bank's strongest account. It pays a high interest rate and has a minimum deposit of $0 to open.

American Express National Bank Review

4. Axos Bank

Earn up to a $300 welcome bonus when you use the promo code AXOS300 to apply for a Rewards Checking account and have qualifying direct deposit(s) by 6/30/24

up to 3.30%

• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Unlimited out-of-network ATM reimbursements
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. No monthly maintenance fees
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. No non-sufficient funds fees
• con icon Two crossed lines that form an 'X'. $50 opening deposit
• con icon Two crossed lines that form an 'X'. No APY if you can't meet qualifications
• con icon Two crossed lines that form an 'X'. Few mobile app reviews

Axos Bank has strong high-yield savings, checking, and money market accounts if you'd like to avoid monthly service fees. But, you can find higher interest rates at some of the best online banks.

• Use promo code AXOS300 and apply by June 30th, to earn up to a $300 bonus!
• Zero monthly maintenance fees
• Zero overdraft or NSF fees
• Zero minimum monthly balance reqs
• Unlimited domestic ATM fee reimbursements
• Online debit card management
• Simple, 3-step process for direct deposit
• Only $50 to open an account

Standout feature: Axos Bank has great high-yield savings, checking, and money market accounts.

Axos Bank Review

5. BMO Alto

No fees or minimum balance requirements. $0 minimum opening deposit.

• Check mark icon A check mark. It indicates a confirmation of your intended interaction. High interest rate
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. No minimum balance requirements
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. No monthly maintenance fee
• con icon Two crossed lines that form an 'X'. No mobile app
• con icon Two crossed lines that form an 'X'. Doesn’t accept cash or check deposits
• con icon Two crossed lines that form an 'X'. Cannot visit a BMO Branch for support

With no minimum opening deposit or monthly fees, BMO's savings accounts are affordable options for those who’d like to build their savings. BMO Alto offers lucrative interest rates on par with some of the best high-yield savings accounts.

• Interest compounded daily and deposited monthly

Standout feature: BMO Alto, an online-only platform, has a high-yield savings account and CDs with competitive interest rates.

How to contact customer support: Customer support is available by phone. If you get a BMO Alto bank account, you can't go to a BMO branch for customer support.

BMO Alto Savings Account and CDs

6. Charles Schwab

Earn 0.45% Annual Percentage Yield (APY). $0 minimum deposit. FDIC Insured.

• Check mark icon A check mark. It indicates a confirmation of your intended interaction. No opening deposit
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. No minimum account balance
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. No foreign transaction fees
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Free overdraft protection

Charles Schwab Bank is one of the best banks for international travelers, because it doesn't charge foreign transaction fees. It also refunds all fees charged by ATMs worldwide. But if you want to earn high interest rates, you're better off looking elsewhere.

• 24/7 live online chat
• When you open a checking account, you automatically open a Charles Schwab brokerage account, too
• No ATM network, but unlimited ATM fee reimbursements

Standout feature : The Schwab Bank High Yield Investor Checking® Account is its most appealing account, with no minimum opening deposit or monthly fees. Charles Schwab also doesn't charge foreign transaction fees and offers unlimited refunds for out-of-network ATM fees.

How to contact customer support: Customer service representatives are available via online chat.

Charles Schwab Review

• Check mark icon A check mark. It indicates a confirmation of your intended interaction. No monthly service fee
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Option to round debit card purchases to the nearest dollar and put spare change in savings account
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Option to automatically save a percentage of your paycheck
• con icon Two crossed lines that form an 'X'. Must open Chime Spending Account before savings account
• con icon Two crossed lines that form an 'X'. Deposit cash at Green Dot locations, which may charge fee
• Round debit card purchases to the nearest dollar to put spare change into savings account
• Set up a percentage of your paychecks to be put into savings account
• Chime is a financial technology company, not a bank. Banking services provided by, and debit card issued by, The Bancorp Bank or Stride Bank, N.A.; Members FDIC.

Standout feature: Chime has solid checking and savings accounts. There are no monthly fees or minimum opening deposit required.

How to contact customer support: Customer service representatives are available over the phone, by live chat in the app, or through email.

*Chime is an online banking platform, not a bank.

Chime Bank Review

8. CIT Bank

Earn 4.65% annual percentage yield on your savings. Open an account with as little as $100 today. Member FDIC.

• Check mark icon A check mark. It indicates a confirmation of your intended interaction. No minimum monthly balance requirement
• con icon Two crossed lines that form an 'X'. $100 minimum opening deposit

The CIT Bank Platinum Savings and CIT Bank Savings Connect Account pay great interest rates that are on par with what best high-yield savings accounts offer right now. The CIT Bank Savings Builder Account and CIT Bank Money Market Account pay above-average rates, but they aren't nearly as competitive.

Standout feature: CIT Bank's most appealing account is the CIT Bank Savings Connect Account. The account has a competitive interest rate that's higher than the average savings account.

CIT Bank Review

$4.50 monthly service fee

4.45% (vary by location)

• Check mark icon A check mark. It indicates a confirmation of your intended interaction. High APY (minimum $0 balance to earn)
• con icon Two crossed lines that form an 'X'. You may pay a monthly fee, depending on a variety of factors
• con icon Two crossed lines that form an 'X'. Other fees depend on which checking account you link to your savings account
• con icon Two crossed lines that form an 'X'. Not available in certain states
• con icon Two crossed lines that form an 'X'. BBB gives Citi an F in trustworthiness

You might like Citi if you live in one of the areas that offers the Citi® Accelerate Savings account, so you can earn a higher savings rate than the national average. The best high-yield savings accounts, however, offer even more competitive savings rates.

• Monthly fee depends on whether you link to a Citi checking account, and which checking account you choose
• You may qualify to have the monthly fee waived, depending on which checking/savings package you have
• No opening deposit
• Compounding interest to maximize your savings
• Not available in CA, CT, MD, NV, NJ, NY, VA, DC, certain parts of FL or IL

Standout feature: Citi's strongest product is its Citi® Accelerate Savings

Citi Review

10. Consumers Credit Union

Earn up to 5.00% Annual Percentage Yield (APY). $5 minimum deposit. FDIC Insured.

up to 5.00%

• Check mark icon A check mark. It indicates a confirmation of your intended interaction. $5 minimum opening deposit
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Early direct deposit
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Unlimited reimbursements for out-of-network ATM fees
• con icon Two crossed lines that form an 'X'. $10 overdraft transfer charge
• con icon Two crossed lines that form an 'X'. Limited customer support availability
• con icon Two crossed lines that form an 'X'. Interest compounds monthly, not daily

You'll find Consumers Credit Union appealing if you enjoy online banking or live near Chicago, Illinois. The credit union has one of the best high-yield checking accounts right now, with a low minimum opening deposit and zero monthly fees.

• To become a member of Consumers Credit Union, pay an initial $5 membership fee and open the Membership Savings Account with at least $5
• 14 open branches in Chicago, Illinois, and nearby cities
• Access to over 5,600 shared branches and 60,000 surcharge-free ATMs through the CO-OP Shared Network
• Earn 3.00% APY on balances up to $10k when you enroll in eDocuments, make 12 debit card transactions per month, and receive $500 per month in deposits
• Earn 4.00% on balances up to $10k when you meet qualifications for 3.00% and spend $500/month with your CCU credit card
• Earn 5.00% on balances up to $10k when you meet qualifications for 3.00% and spend $1,000/month with your CCU credit card
• Earn 0.20% APY on balances between $10k and $25k
• Earn 0.10% APY on balances over $25k
• If you don't meet the requirements to earn a rewards interest rate, you'll earn 0.01% APY and you won't get ATM refunds
• Interest compounded and deposited monthly

Standout feature: Consumers Credit Union has a strong rewards checking account. You can earn a high interest rate if you meet the requirements.

How to contact customer support: Customer service representatives are available by phone.

Consumers Credit Union Review

11. Delta Community Credit Union

4.00% to 5.15%

• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Low-to-standard early withdrawal penalties
• con icon Two crossed lines that form an 'X'. $1,000 opening deposit
• con icon Two crossed lines that form an 'X'. Interest compounded monthly, not daily
• Credit union with 29 branches in Metro Atlanta, Georgia; 1 branch in Kentucky, Texas, and Utah
• Free shared branches and ATMs around the US in the CO-OP Shared Branch Network
• Membership depends on employer/association membership; or you can be a resident of certain counties in Georgia or have a family member who is already a member
• Term lengths of 6, 12, 24, 36, or 60 months
• Early withdrawal penalties ranging from 60 to 270 days interest
• Interest is compounded monthly and paid monthly

Standout feature: Delta Community Credit Union's strongest products are its share certificates. You can get a competitive interest rate. If you need to withdraw money early, its penalties are lower than other institutions.

Delta Community Credit Union Review

12. Discover Bank

Earn 4.25% Annual Percentage Yield (APY). $0 minimum deposit. FDIC Insured.

4.25% (as of 3/14/24)

• Check mark icon A check mark. It indicates a confirmation of your intended interaction. No insufficient funds fee
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. No excess withdrawal fee
• con icon Two crossed lines that form an 'X'. Only 1 branch location
• con icon Two crossed lines that form an 'X'. No debit card unless you open a checking account

The best high-yield savings accounts offer competitive interest rates and low fees, and the Discover Online Savings Account comes with both. The minimum opening deposit might be especially attractive to new savers who don't meet the higher initial deposits some banks require.

• No monthly balance requirements
• 100% US-based customer service available 24/7
• No hidden fees

Standout feature: Discover Bank has a great online savings account. You can earn a high interest rate, and you don't have to deal with monthly fees.

Discover Bank Review

13. Falcon International Bank

• Check mark icon A check mark. It indicates a confirmation of your intended interaction. MasterCard debit card offering
• con icon Two crossed lines that form an 'X'. $35 overdraft fee
• con icon Two crossed lines that form an 'X'. $5 fee for paper statements
• con icon Two crossed lines that form an 'X'. $4 transaction fee for out-of-network ATMs
• con icon Two crossed lines that form an 'X'. $5 fee if you don't use your account after 90 days

If you live in Texas and are looking for bank accounts with zero monthly service fees and a variety of CD options, then Falcon International Bank may be a good option. The best CD rates at online banks are good options for those who don't live in Texas, though.

• Hispanic American-owned
• 24 ATM locations, $4 transaction fee for out-of-network ATMs
• With overdraft protection there is a $35 charge
• 18 branches in Texas

Standout feature: Falcon International Bank has a good checking account for Texas residents. With the Falcon International Bank Regular Checking Account , there's no minimum opening deposit and zero monthly service fees.

14. FirstBank

$12 monthly service fee

• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Overdraft protection available
• con icon Two crossed lines that form an 'X'. $2.50 out-of-network ATM fee
• con icon Two crossed lines that form an 'X'. $34 overdraft fee
• con icon Two crossed lines that form an 'X'. $20/year or $10/day overdraft transfer fee
• Access to over 100 locations and 200 ATMs in AZ, CA, CO
• Overdraft protection plans that lets you link your checking account to a savings account
• If you utilize overdraft protection, there's either a $20/year or $10/day transfer fee

Standout feature: FirstBank has over 100 branches in Arizona, California, and Colorado. Its checking account has a $0 minimum opening deposit.

15. KeyBank

Earn $200 after completing qualified activities until 07/19/2024 with the no-monthly-maintenance-fee Key Smart Checking®

• Check mark icon A check mark. It indicates a confirmation of your intended interaction. No minimum balance
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Overdraft protection
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Account alerts to avoid overdrawing
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. $10 minimum opening deposit
• con icon Two crossed lines that form an 'X'. $3 out-of-network ATM fee (within the U.S.)
• con icon Two crossed lines that form an 'X'. $20 overdraft fee
• Earn $200 after qualified activities until 07/19/2024 with the no-monthly-maintenance-fee Key Smart Checking®
• Open a Key Smart Checking® account online by July 19, 2024
• Make the minimum opening deposit of $10, plus one direct deposit of at least $500 within the first 60 days of account opening
• Approximately 1,000 branches in 15 states across the U.S.
• Over 40,000 free ATMs through the KeyBank and Allpoint ATM networks
• To avoid overdraft fees, you may link your checking account to a savings account or get a line of credit
• With Key Coverage Zone, if the unexpected happens and your account’s overdrawn up to $20 at the end of the day, KeyBank won’t charge you an overdraft fee

Standout feature: KeyBank offers a checking account with zero monthly service fees and free overdraft protection.

How to contact customer support: Customer service is available over the phone.

KeyBank Review

16. Navy Federal Credit Union

• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Refunds up to $20 per month in out-of-network ATM fees
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Receive direct deposits one day before payday
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. No monthly service fee if you set up military direct deposits
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Free personalized checks
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. 3 overdraft protection options: savings transfer, line of credit, or optional overdraft protection service
• con icon Two crossed lines that form an 'X'. Free Active Duty Checking is only for active military, retired military, or reservists

Navy Federal Credit Union is one of the best institutions for the military. Its strongest features are probably its 24/7 live customer support and out-of-network ATM refunds.

• Available to active military, retired military, or reservists
• Join Navy Federal Credit Union as an active military member, military veteran, Department of Defense employee/retiree, or family member of any of the aforementioned groups
• 354 branches worldwide, including on select military bases
• 30,000 free ATMs
• Interest compounded monthly, paid monthly

Standout feature: Navy Federal Credit Union has solid account options if you're affiliated with the military. The Navy Federal Free Active Duty Checking™ Account is one of the bank's strongest accounts with the option of early direct deposit .

Navy Federal Credit Union Review

17. Regions Bank

$5 at a branch, $50 online

• Check mark icon A check mark. It indicates a confirmation of your intended interaction. You could earn a 1% annual savings bonus
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. $5 minimum deposit when opened at a branch
• con icon Two crossed lines that form an 'X'. $50 minimum deposit when opened online
• con icon Two crossed lines that form an 'X'. Low APY
• 1,300 branch locations in 15 states
• 2,000 free ATMs
• To earn the 1% annual bonus (up to $100), set up monthly automatic transfers from your Regions checking account to your LifeGreen Savings account
• Interested compounded daily, paid monthly

Standout feature: It has about 1,300 branch locations in 15 states and is a good option if you are searching for a bank with a national presence.

How to contact customer support: Customer service is available through a secure message.

Regions Bank Review

18. State Employees Credit Union

• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Low minimum opening deposit
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Better interest rate than some brick-and-mortar banks
• con icon Two crossed lines that form an 'X'. Online banks offer a higher interest rate
• con icon Two crossed lines that form an 'X'. Must have $25 in account to maintain membership
• 273 branches in North Carolina
• Access to 1,100 ATMs in North Carolina

Standout feature: State Employees Credit Union has over 273 locations and 1,100 free ATMs in North Carolina. Its checking and savings accounts have low minimum opening deposits and low monthly service fees.

19. Service Credit Union

• Check mark icon A check mark. It indicates a confirmation of your intended interaction. No out-of-network ATM fee
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Earn up to $30 per month in out-of-network ATM refunds, depending on tier level
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Earn up to 0.75% discount on certain loans, depending on tier level
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Get paid up to 2 days early
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Transfer funds from savings for overdraft protection
• con icon Two crossed lines that form an 'X'. No ATM fee refunds or loan discounts for Basic tier
• con icon Two crossed lines that form an 'X'. Limited fee refunds and loan discounts for Direct Deposit tier
• con icon Two crossed lines that form an 'X'. $5 overdraft transfer fee (no fee for Direct Deposit + tier)
• Join Service Credit Union as an active or veteran military member, former or current employee of the Department of Defense, employee of a Select Employer Group, or member of the American Consumer Council
• Branches and ATMs in the US and Europe
• Three Everyday Checking tiers: Basic, Direct Deposit, and Direct Deposit +
• Basic doesn't reimburse out-of-network ATM fees or offer loan discounts; Direct Deposit reimburses up to $15 per month in out-of-network ATM fees and offers 0.50% discounts on certain loans; Direct Deposit + reimburses up to $30 per month in out-of-network ATM fees and offers 0.75% on certain loans
• Qualify for Direct Deposit tier by setting up direct deposits (minimum $500 in direct deposits each month to qualify for perks); qualify for Direct Deposit + by setting up DFAS direct deposits, OR by setting up direct deposits and making at least 5 payments per month

Standout feature: Service Credit Union has solid account options if you're affiliated with the military and live in New Hampshire or Massachusetts. The Service Everyday Checking Account offers a high interest rate if you meet the requirements.

Service Credit Union Review

20. Security Service Credit Union

• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Overdraft protection available as a transfer from savings or as a line of credit
• con icon Two crossed lines that form an 'X'. $1.50 out-of-network ATM fee
• con icon Two crossed lines that form an 'X'. Doesn't reimburse fees charged by out-of-network ATM providers
• con icon Two crossed lines that form an 'X'. $2 overdraft transfer fee when you exceed 3 transfers per month
• Join Security Service FCU if you are a member of select military branches at certain military bases; are an employee of the Department of Defense; live, work, worship, study, volunteer, or have a business in CO, TX, or UT; are related to someone who is already a Security Service FCU member
• 67 branches in CO, TX, and UT; 5,000 shared branches in the CO-OP network
• Over 30,000 free ATMs in the Security Service FCU, CO-OP, and Stripes networks

Standout feature: Security Service Credit Union has solid account options if you're affiliated with the military and live, work, or study in Colorado, Texas, and Utah. The Security Service Power Checking Account has zero monthly fees.

Security Service Credit Union Review

21. TD Bank

• Earn $200 when you deposit $10,000 or more in new money within 20 days, then maintain that balance for 90 days from the date the deposit requirement is initially met (Offer ends June 30, 2024)

$5 monthly service fee

• Check mark icon A check mark. It indicates a confirmation of your intended interaction. No monthly fee for students, or for adults under age 24 or age 62 or older
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. No monthly fee for the first 12 months, with recurring monthly deposits of $25
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Mobile check deposit
• con icon Two crossed lines that form an 'X'. $5 monthly service fee

TD Bank Signature Savings Account pays a higher interest rate than the TD Simple Savings Account on balances of $10,000 or more. However, to get the most out of this account, you'll need to qualify for a relationship rate and meet one of the requirements to waive the TD Signature Savings - Fees Display. Ultimately, you can find much better rates with the best online banks.

• No monthly service fee for students, adults under age 24 or age 62 or older
• Waive $5 monthly service fee by maintaining $300 minimum daily balance
• No monthly fee for the first 12 months if you make recurring $25 monthly deposits
• Interest compounded daily

Standout feature: TD Bank is featured on our best national banks guide. It has over 1,200 branches across 16 states and is a solid option if you're looking for banks with a national presence.

TD Bank Review

22. U.S. Bank

Earn up to $200 for opening a new Standard Savings account and completing qualifying activities (offer expires June 27, 2024)

$4 monthly service fee

• Check mark icon A check mark. It indicates a confirmation of your intended interaction. $25 minimum opening deposit
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. You may qualify to waive the monthly fee
• con icon Two crossed lines that form an 'X'. $4 monthly service fee

U.S. Bank is included in our best national banks guide as the best national bank in the Midwest and West. It's a good choice if you want a brick-and-mortar bank with 24/7 live support. It also has a variety of credit card and lending options, and you can earn significant welcome bonuses when you open checking and savings accounts.

• Earn up to $200 with a new Standard Savings account.
• -Make new money deposit(s) totaling $15,000 or more by July 17, 2024
• -Maintain that balance until October 31, 2024
• Offer may not be available if you live outside of the U.S. Bank footprint or are not an existing client of U.S. Bank or State Farm.
• Over 2,200 branches in 26 US states
• Free access to around 4,500 ATMs
• Waive $4 monthly service fee by maintaining a $300 daily balance, OR average $1,000 monthly balance, OR being under age 18

Standout feature: U.S. Bank is featured on our best national banks guide. It has over 3,000 branches across 26 states and is a good option if you're looking for banks with a national presence.

U.S. Bank Review

Criteria for selection: How we found 24/7 customer service banks

We looked at the national, regional, and online financial institutions featured in our "best of" guides. If a financial institution offered customer service by phone, live chat, or an online or mobile banking feature, we included it in our list.

If you've found it challenging to bank during normal business hours in the past, you may want to find a bank that offers 24/7 customer support. Below, we outline some primary benefits of 24/7 customer service.

Convenience for customers across time zones

Many financial institutions listed in this guide are national banks. They have branches in several different regions or perhaps an online-only presence in all 50 states. Having 24/7 customer support can be of great value to customers of these banks because they don't have to worry about time zone differences when contacting customer service.

Immediate assistance for urgent banking services

Standard bank customer service hours follow a similar structure to branch hours — typically from 9 a.m. to 5 p.m. on weekdays and morning availability on Saturdays.

Another benefit to banking with a financial institution that has 24/7 customer support is that you get immediate banking help via chat or phone when other banks are closed. You also might prefer banking with a financial institution with extended customer service hours if you regularly have schedule conflicts with traditional banking hours.

Enhanced digital banking experience

Numerous banks with 24/7 customer service also have other digital banking features that may be appealing to customers.

For example, some banks listed have a live chat feature so you can communicate directly with a representative through the bank's website. Other banks also have strong mobile banking features with communication features. You'll be sent a message through the app and get a prompt response back.

Customer support frequently asked questions (FAQs)

It can be incredibly beneficial for customers if a bank offers 24/7 customer service because then they'll have access to round-the-clock banking assistance.

Customer support wait times tend to vary from day to night and from bank to bank. Banks with many services will often specify different customer service hours for various products, so it's important to check a bank's website before calling a bank representative.

The bank website will usually mention what times customer service is available.

U.S. banks usually have a specific customer service number for customers traveling abroad. You might find banks with 24/7 automated services, but 24/7 live support services for international customers isn't very common.

A bank with 24/7 customer service can help you address common banking questions or emergencies.

• Are banks open today? Here's a list of US bank holidays for 2023
• Best CD rates
• Best High-yield savings accounts
• Four reasons why your debit card might be denied even when you have money

Editorial Note: Any opinions, analyses, reviews, or recommendations expressed in this article are the author’s alone, and have not been reviewed, approved, or otherwise endorsed by any card issuer. Read our editorial standards .

Please note: While the offers mentioned above are accurate at the time of publication, they're subject to change at any time and may have changed, or may no longer be available.

**Enrollment required.

Chime is a financial technology company, not a bank. Banking services provided by The Bancorp Bank, N.A. or Stride Bank, N.A., Members FDIC.

Out-of-network ATM withdrawal fees may apply except at MoneyPass ATMs in a 7-Eleven, or any Allpoint or Visa Plus Alliance ATM. Early access to direct deposit funds depends on the timing of the submission of the payment file from the payer. We generally make these funds available on the day the payment file is received, which may be up to 2 days earlier than the scheduled payment date.

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UPDATED 12:25 EDT / APRIL 11 2024

Transforming customer service with AI: Enterprise evolution’s next step

by Victor Dabrinze

Artificial intelligence is disrupting several industries, product/service verticals and operations. Customer service is one such area experiencing AI’s transformative effects.

How are customer-facing companies in industries such as finance and retail harnessing AI to exploit available touchpoints, supercharge end-user satisfaction and drive sales?

“When you think about all the customer stories   that we’ve shared, Discover is a great one   that’s associated with it,” said  Michael Clark (pictured, right), president of North America at Google Cloud. “ What is super clear is the moment has arrived   for gen AI in the enterprise.  Leading companies are now moving   to production against great use cases   that are associated with it.   And for Discover, it is really about,  ‘H ow do I make that contact center that much more efficient   and how can I help our folks?'”

Clark and  Szabolcs Paldy (left), senior vice president of enterprise operations at Discover Financial Services, spoke with theCUBE Research analysts Savannah Peterson  and  Rob Strechay at Google Cloud Next 2024 , during an exclusive broadcast on theCUBE, SiliconANGLE Media’s livestreaming studio. They discussed the collaboration between Google and Discover Financial Services to revolutionize customer experiences in the banking sector. (* Disclosure below.)

AI driving real changes across the board

Being a direct bank, Discover offers its services exclusively through the internet, mobile and other electronic means. Seeing as there’s no branch network, class-leading customer service is crucial to continued market differentiation and competitiveness with this operating model.

“If you consider what happened to customer service agents   and their job, it has become significantly more complex   in the last [few] years as digital banking   successfully penetrated the industry,” Paldy said.  “ You don’t call a call center with easy questions anymore.   You call then you have a difficult question.   And because of that,   the customer service agents are fielding   difficult question after difficult question.”

Customer agents face increasingly complex inquiries, expanding the information base required to consistently resolve them. Gen AI’s summarization capabilities are useful in sourcing and collating relevant information when required.

“W hat we set out to do is  change the customer experience when you call;   you ask your question   and then the agent has to say,  ‘C an I put you on hold for a minute?’   And then they promptly go and search   and try to find the right document,  read it   through and try to find something,” Paldy said.  “ With generative AI,  w e create a summary that’s just   a paragraph of what exactly is the answer.”

What sets the Discover/Google partnership apart is its seamless integration of AI into existing workflows, according to Paldy. Blending AI workflows into traditional search methods has enabled a frictionless experience for Discover agents. Crucially, the collaboration between human agents and also AI fosters a feedback loop for continuous improvement, ensuring the technology aligns with user needs while adhering to regulatory guidelines.

“The agents are becoming   the biggest asset in this game   because your expert agents are the ones   who can train the AI,” Paldy said.  “W e take feedback from the agents,   and we explain it to them that we take feedback.  T hey give qualitative feedback on   which are those [areas] where the process   is working and which are those where we need   to fine-tune more or test more.”

Here’s the complete video interview, part of SiliconANGLE’s and theCUBE Research’s coverage of Google Cloud Next 2024 : 

(* Disclosure: Google LLC sponsored this segment of theCUBE. Neither Google nor other sponsors have editorial control over content on theCUBE or SiliconANGLE.)

Photo: SiliconANGLE

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Yes, all our writers of essays and other college and university research papers are real human writers. Everyone holds at least a Bachelor’s degree across a requested subject and boats proven essay writing experience. To prove that our writers are real, feel free to contact a writer we’ll assign to work on your order from your Customer area.

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The company must have a polite support service that will competently advise the client, answer all questions and support until the end of the cooperation. Also, the team must get out of conflict situations correctly.

It is necessary to have several payment methods on the site to make it easier for the client to transfer money.

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Regions Riding Forward® Scholarship Contest

Their Story. Your Voice.

Your voice is your own. But it's also been impacted by others. Who, we wonder, has inspired you? Let us know by entering the Regions Riding Forward Scholarship Contest. 

You could win an $8,000 college scholarship

For the opportunity to win an $8,000 scholarship, submit a video or written essay about an individual you know personally (who lives in your community) who has inspired you and helped you build the confidence you need to achieve your goals.

The details

The 2024 Regions Riding Forward Scholarship Contest consists of four (4) separate Quarterly Contests - one for each calendar quarter of 2024. Regions is awarding four $8,000 scholarships through each Quarterly Contest.

Each Quarterly Contest has its own separate entry period, as provided in the chart below.

The entry deadline for each Quarterly Contest is 11:59:59 PM Central Time on the applicable Quarterly Contest period end date (set forth in the chart above).

No purchase or banking relationship required.

Regions believes in supporting the students whose passion and actions every day will continue to make stories worth sharing. That’s why we have awarded over $1 million in total scholarships to high school and college students.

How to enter, 1. complete an online quarterly contest application.

Enter the Regions Riding Forward Scholarship Contest by completing a Quarterly Contest application.  The second Quarterly Contest runs from April 1, 2024 through June 30, 2024. Complete and save all requested information. 

2. Prepare your Written Essay or Video Essay

For each Quarterly Contest, the topic of your Written Essay or Video Essay (your “Essay Topic”) must be an individual you know personally, who lives in your community. Your Written Essay or Video Essay must address how the individual you have selected as your Essay Topic has inspired you and helped you build the confidence you need to achieve your goals.

Written Essay and Video Essay submissions must meet all of the requirements described in the contest Official Rules. Your Written Essay or Video Essay must be (i) in English, (ii) your own original work, created solely by you (and without the use of any means of artificial intelligence (“AI”)), and (iii) the exclusive property of you alone.

Written Essays must be 500 words or less. You can write your Written Essay directly in the application, or you can copy and paste it into the appropriate area in the application form.

Video Essay submissions must be directly uploaded to the contest application site. Video Essays must be no more than 3 minutes in length and no larger than 1 GB. Only the following file formats are accepted: MP4, MPG, MOV, AVI, and WMV. Video Essays must not contain music of any kind nor display any illegal, explicit, or inappropriate material, and Video Essays must not be password protected or require a log-in/sign-in to view. You must upload your Video Essay to the application, and you may not submit your Video Essay in DVD or other physical form. (Video Essays submitted via mail will not be reviewed or returned.)

Tips to Record Quality Videos on a Smartphone:

• Don’t shoot vertical video. Computer monitors have landscape-oriented displays, so shoot your video horizontally.
• Use a tripod. Even small movements can make a big difference when editing.
• Don’t use zoom. If you need to get a close shot of the subject, move closer as zooming can cause pixilation.
• Use natural lighting. Smartphone lighting can wash out your video.

3. Review and submit your Quarterly Contest application

Review your information on your Quarterly Application (and check the spelling of a Written Essay) and submit your entry by 11:59:59 p.m. Central Time on the applicable Quarterly Contest period end date. The second Quarterly Contest period end date is June 30, 2024.

4. Await notification

Winning entries are selected by an independent panel of judges who are not affiliated with Regions. If your entry is selected as a Quarterly Contest winner, you will need to respond to ISTS with the required information.

Eligibility

For purposes of this contest:

• The “Eligible States” are defined as the following states: Alabama, Arkansas, Florida, Georgia, Iowa, Illinois, Indiana, Kentucky, Louisiana, Mississippi, Missouri, North Carolina, South Carolina, Tennessee and Texas.
• An “accredited college” is defined as a nonprofit, two- or four-year college or university located within one of the fifty (50) United States or the District of Columbia.

To be eligible to enter this contest and to win an award in a Quarterly Contest, at the time of entry, you must:

• Be a legal U.S. resident of one of the Eligible States.
• Be age 16 or older.
• Have at least one (1) year (or at least 18 semester hours) remaining before college graduation.
• If you are not yet in college, begin your freshman year of college no later than the start of the 2025 – 2026 college academic school year.
• As of your most recent school enrollment period, have a cumulative grade point average of at least 2.0 in school (and if no GPA is provided at school, be in “good standing” or the equivalent thereof in school).

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Embedded finance: The choices and trade-offs for US banks

Over the past several years , major brands and tech platforms have partnered with banks to launch embedded-finance products that enrich their value and customer experience. For example, the restaurant management software platform Toast, in partnership with WebBank, launched merchant cash advance to offer short-term liquidity informed by card receivables data. Uber partnered with Evolve Bank & Trust and the accelerated pay company Branch to launch a debit Mastercard that allows drivers to get paid faster and earn rewards on fuel purchases. And several airlines have partnered with the buy-now-pay-later (BNPL) service Uplift and CBW Bank, to offer customers installment loans for flight purchases.

These are just a few products that contribute to embedded finance in the United States, which McKinsey research has determined to be worth $20 billion. In an earlier article , we defined embedded finance (EF) as the delivery of financial products, such as loans, insurance, and payments, by nonfinancial entities within the context of a broader nonfinancial offering. We outlined the emergence of embedded finance, the trends driving its double-digit growth, the ecosystem of players, and the opportunities we saw for firms to differentiate themselves.

At first glance, embedded finance offers banks an attractive opportunity to expand their distribution footprint with relatively low operating expenses. To lower the overhead typically required to sell and service financial services, banks can partner with software platforms, marketplaces, and retailers that directly access thousands of small businesses and millions of consumers.

However, EF also poses significant risks for many banks. Often banks must relinquish direct relationships with customers, so they run the risk of commoditization. Cannibalization of core products also is possible because banks have limited control over the distribution channels, which might include existing and prospective customers. These risks were minimal in early EF use cases, which primarily targeted underbanked consumers, such as those with neobank accounts and higher credit risk under traditional underwriting methods. However, in the past year, larger enterprises and technology platforms have offered a broader range of financial products to target customer segments more traditionally served by legacy banks.

Thus, incumbent financial institutions face a decision: to opt out of EF and cede market share to insurgent partnerships or to participate and give up revenue to their partners. To help banks weigh the pros and cons, this article looks at the various roles banks can play in EF and explores trade-offs and strategic postures to consider.

Different bank archetypes face different trade-offs

The risks and opportunities of EF differ depending on a bank’s size, distribution footprint, breadth of customer base, and product portfolio. It can be helpful to consider these variables in terms of three bank archetypes.

Durbin-exempt banks

Banks with less than $10 billion in assets have a structural advantage relative to their peers: the Durbin Amendment to the 2010 Dodd-Frank Act lets them charge higher interchange rates on debit transactions, which helps them outbid larger banks for EF distribution partnerships. As a result, many small banks (for example, Evolve Bank & Trust, which has $1.4 billion in assets) are the engine behind many checking-account-oriented fintechs and neobanks, such as Dave, Mercury, and Wise.

However, competing in embedded finance as a small bank can be challenging. Unlocking fully embedded use cases demands end-to-end digitized financial product journeys, such as account opening and know-your-customer, that are beyond many small banks’ tech stacks and capabilities. Moreover, the $10 billion ceiling for the Durbin exemption can cap the return on a transformative technology upgrade.

For small banks, EF can be a distribution multiplier with minimal risk of cannibalizing existing customers. But taking advantage of this opportunity requires rethinking technology, risk, and operations. Banks might solve this through partnerships and aggregators rather than internal builds. Still, the relative simplicity of basic deposit and debit products and the number of Durbin-exempt financial institutions 1 “Regulation II (debit card interchange fees and routing),” Federal Reserve Board, June 23, 2023. —more than 9, 300 in the United States, or 95 percent of all US financial institutions —could commoditize this offering. Specialization (in lending products or risk services, for instance) and differentiation (perhaps in technology infrastructure or customizable compliance processes) through application programming interfaces can help small banks stand out.

Regional and segment specialist banks

Larger banks that compete in markets that are bounded—by geography, for example—have more opportunities. Because the risk of cannibalization is low outside their core markets, these banks display a greater appetite for trying to reach customers through embedded finance. With greater scale than the Durbin-exempt banks, they have more opportunities to invest in proprietary technology and can use their niche expertise to offer distinctive EF solutions.

For example, Citizens Bank, a regional bank in the Northeast, started its embedded-finance journey by providing installment loans to finance iPhone purchases from Apple, which gave it a diversified national consumer lending base. It extended that infrastructure to deliver on-demand installment finance to other e-commerce merchants, and now competes head-to-head with Affirm and other fintechs.

More broadly, commercially oriented banks can comfortably unlock EF use cases on the retail side, and those catering to midmarket and large enterprises can extend their offerings to small and medium-size enterprises (SMEs). Regional and segment-specific banks can generate incremental revenue with little downside by serving customers they would otherwise be unable to reach and those requiring a more comprehensive bundle of services. Their scale allows them to absorb the capital costs and fund the necessary expertise to serve niche segments and products through internal development, partnership, or acquisition.

Large, diversified banks

The country’s largest banks with diversified offerings and broad footprints face the biggest challenge in embedded finance. Cost structures and regulatory constraints made these banks less attractive partners for early EF use cases centered on deposits, savings, and debit interchange, and at their scale, almost any distribution partnership risks cannibalization.

However, the next wave of embedded finance will likely present an opportunity for larger banks. First, as EF players shift attention toward credit and lending use cases, they may increasingly value partners with hefty balance sheets, low cost of funds, and strong risk and regulatory controls. Amazon’s decades-long credit card partnership with Chase is an example; few banks have a balance sheet large enough to underwrite Amazon’s transaction volume.

Second, many large banks have niches within their product portfolio that they can transform into targeted EF propositions for distribution through third parties. HSBC, for example, recently partnered with the B2B fintech platform Tradeshift and with the digital logistics company FreightAmigo. Though HSBC is not among the largest banks in the United States, it is one of the largest globally and plays a major role in trade financing. Its strength in that area positions HSBC to develop trade finance products and distribute them at scale in third-party marketplaces and software platforms while maintaining its reputation as a leader in this space.

The largest, most diversified banks will likely face the highest cannibalization risk from third-party distribution. But where they can leverage differentiating capabilities, such as at-scale lending and credit or specialized areas of their product portfolio, the increased share may outweigh the margin loss.

Six strategic embedded-finance postures

In the face of embedded finance’s opportunities and challenges, banks may want to consider adopting one of six postures. The trade-offs facing each archetype will help banks narrow the choices (exhibit).

Deliver EF-like experiences in-house

Embedded finance has raised the bar on customer experience in banking. Larger banks may opt to integrate the lessons of EF into their own banking experiences. Already, some are launching “challenger banks” to pursue clients with digital-led, EF-inspired offerings in segments where their current brand or operating model has less traction.

For example, Key Bank launched Laurel Road, a digital platform for healthcare professionals; its anchor product is student loan refinancing. Similarly, American Express’s Plan It option allows cardholders to pay for a standard credit card purchase with an installment loan repayment plan, mirroring popular BNPL offerings from would-be credit card disruptors.

These are not true examples of embedded finance, because they do not embed financial services in nonfinancial product journeys, but they are a viable competitive response. Part of what makes EF products appealing to customers is the tailored features and streamlined user experiences they offer. Mimicking these characteristics in an in-house challenger product reduces these points of differentiation. That said, an in-house product does not address EF’s primary advantage of bringing financial products to customers when and where they need them most.

Not every bank will succeed in replicating the customer experience of embedded finance. Still, the competitive environment is likely to motivate most to adapt EF’s lessons to enhance their customer experiences.

Acquire or build a distributor

Many fintech software players have made direct strides into banking: Square got a banking license in 2021, SoFi acquired Golden Pacific Bancorp in 2022, and Twitter Payments received its first state money transmitter license in June 2023. For the largest banks, a move in the opposite direction—building or purchasing a software player to distribute the bank’s financial products—might be appealing.

M&T’s Nota software is an example. Nota helps lawyers track and manage their clients’ funds and integrates with their practice management software. The bank has partnered with the Florida Bar Association to distribute Nota to its members. JPMorgan Chase acquired InstaMed in 2019 to provide a similar service to doctors’ offices.

Because of the capital required to build or acquire software to reach new customers, we expect this strategy to become more common among regional and national banks. The attractive economics of end-customer relationships will likely inspire some banks to seek growth this way. However, the cultural tension between risk-conscious banks and risk-seeking software start-ups may limit how many take it up.

Strategically partner with large enterprises

Many nonbank distribution partners, including major retail brands and other large employers with lower levels of financial and digital experience, see the benefits to their core business and the opportunity for new revenue streams from embedded finance. But they also recognize the significant operating complexity and risk in designing and distributing financial products. At-scale banks hold a competitive edge in the trust they built from blue-chip players, existing commercial relationships, and their ability to manage risk and regulatory compliance at scale.

These banks can differentiate themselves by building turnkey EF products, such as payroll, employee checking, earned-wage access, B2B payments, and CFO suite software. Embedded finance may soon become another off-the-shelf product, like financial management, that banks can offer to treasurers and CFOs.

Partnering with large enterprises may be the most likely approach for regional, segment-specific, and national banks. In the medium term, some commercial banks may differentiate by offering embedded finance as another commercial banking service. Although this poses some risk of cannibalization—for instance, distributing a checking account to an enterprise client employee who is already a bank customer—the distribution advantages and deeper commercial bank relationships will likely outweigh the costs.

Strategically partner with ISVs and marketplaces

Independent software vendors (ISVs) and marketplaces have led EF adoption for the past several years. Many of the largest, such as Shopify and Toast (ISVs) or Expedia and Etsy (marketplaces), offer various financial products on their platforms, including checking accounts, credit cards, and lending (mainly via merchant cash advances) through bank partnerships. Shopify has partnered with the payment facilitator Stripe and bank partners to include many of these products in its merchant dashboards, creating a customer experience that is different from that of traditional banking. With Stripe providing an EF platform for multiple players and other companies like FIS, Adyen, and Fiserv also developing payment infrastructures capabilities, ISVs and marketplaces will probably remain at the forefront of EF adoption.

For banks, ISV and marketplace partnerships present the highest risk of commoditization because of the many potential partners sitting between the bank and the merchant. ISVs, marketplaces, and payment intermediaries may seek multiple bank partners, offering deposit and lending products to the highest bidder, thereby squeezing bank margins. Banks will probably counter this trend by enriching their offerings with product, sales, and risk services to ISV and marketplace partners. Experts from the bank would work directly with an ISV to design attractive risk-controlled products and help create prospecting strategies and marketing materials to attract desirable customers in a compliant manner.

Partnering with ISVs and marketplaces may be a likely approach for regional and segment-specific national banks. The risk of commoditization will probably be too high for larger banks. And smaller banks may not have the resources to provide the level of product, sales, and risk service that at-scale banks can deliver; they may be more content to strengthen their balance sheets with low-priced deposit and lending opportunities. But in the middle, a few regional and segment-specific banks may forge strategic partnerships to deliver differentiated services and capture new SME markets.

Specialize in lending as a service

Many banks have expertise in particular lending products, from underwriting to compliance to servicing, and within specific verticals, but lack the distribution to reach every customer who could benefit from them. Fortunately, many distribution partners—particularly vertical-specific, software-as-a-service vendors such as Mindbody and Square—have at-scale access to customers with similar niche lending needs. Banks of any size with a unique product or vertical proficiency, or the wherewithal to build it, could use embedded finance to earn a potentially higher return with relatively low operating expenses.

For example, New Jersey–based Cross River Bank has played this role  in BNPL and other forms of purchase-linked finance. It built credit underwriting capabilities and risk controls to orchestrate partner credit models that could serve the fast-growing fintech lending niche. The expertise it gained provided Cross River a competitive edge in serving a generation of lending-based fintechs.

The opportunity will likely be limited for smaller banks with fewer investment dollars and a smaller balance sheet, but Cross River has shown it is possible. Larger banks have many of the assets for niche lending within their existing teams and systems, and they may find lending specialization the most accessible way to engage with embedded finance.

Offer balance sheet and risk services

Banks that don’t have the investment capacity to participate in EF’s distribution opportunity can leverage banking-as-a-service (BaaS) platforms. Existing examples include Treasury Prime, Unit, and Bond. These platforms can already distribute deposit and lending products through their nonbank distribution channels; the banks get access to new revenue streams, and the BaaS platforms expand the deposit and lending capacity available to distribution partners. This marketplace model, supplied by a portfolio of banks, allows smaller banks to participate in embedded finance without major investments in IT.

While there will likely continue to be a market for large and midsize banks to play a sponsorship role, the balance sheet and risk services approach may be most attractive for small banks, especially those seeking to leverage BaaS platforms that offer a capital-light approach to entering embedded finance. In contrast, larger banks face two obstacles to joining these platforms. First, the standardization of products limits the extent to which larger banks can leverage their unique expertise, and second, the availability of Durbin-exempt banks on the platforms limits the attractiveness of larger banks as partners. As a result, this could be a strategy that investment- and deposit-constrained Durbin-exempt banks will pursue to broaden their deposit base.

Banks are at a strategic crossroads. Until recently, embedded finance primarily served costly and riskier customer segments. But with nonbank insurgents gradually moving upmarket to target core banking segments, incumbents must choose how to respond or risk losing market share. Customers want to bank online through nonbank channels. Banks that can help them do so could generate growth with embedded finance.

Andy Dresner and Brian Pike are partners in McKinsey’s New York office, and Harry Schiff is a consultant in the Montreal office.

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How to Claim Your Part of a $45 Million Walmart Settlement

A class-action lawsuit accusing the retail giant of inflating prices of certain weighed foods and produce resulted in a settlement. Customers may be eligible for a payment of up to $500.

By Emmett Lindner

Some Walmart customers may be entitled to claim up to $500 as part of a $45 million settlement that the retail giant is paying to resolve a class-action lawsuit, according to a settlement administrator’s website .

The lawsuit, filed on Oct. 19, 2022, claimed that Walmart overcharged shoppers for in-store purchases of certain weighted grocery items, including poultry and pork, and for bagged citrus. The lawsuit accuses the company of “unfair and deceptive business practices” that resulted in higher costs than what were advertised, according to court documents .

The lawsuit alleges that Walmart falsely inflated product weight, mislabeled products and overcharged for clearance products sold by weight.

The retail giant has denied the allegations, but it agreed to the settlement. “We believe a settlement is in the best interest of both parties,” a Walmart spokeswoman said in a statement.

Think you’re eligible? Here’s what to know:

Walmart is accused of overcharging for some weighted items.

The lawsuit claims that Walmart overcharged for certain items. Prices for weighted products, including meat, poultry, pork and seafood, sometimes differed between the item labels and the labels on the shelves, and customers were charged for the higher prices at checkout, according to the settlement.

Other grocery descriptions are said to have been distorted, too. Some bagged citrus products, including navel oranges, organic oranges, organic grapefruit and tangerines, were labeled with a weight that was lower than what appeared on the shelf tags, and customers were charged for a heavier weight of the products than what they took home.

The lawsuit also included some weighted goods that were near expiration, and displayed a price that was lower than what appeared on the register.

How do I find out if I’m eligible for a payment?

Any customers who shopped in a store at a Walmart retail location in the United States and Puerto Rico between Oct. 19, 2018, and Jan. 19, 2024, and purchased the included weighted goods or bagged citrus can apply for a settlement payment through the administrator’s website or by mail.

The deadline to submit any claim is June 5, 2024.

How do I apply, and how much should I expect?

To apply, either fill out the online form on the administrator’s website , or download a form to print and send by mail to an address provided on the form. The form requires claimants to submit contact information, describe the type and number of items purchased, and select a payment option, and gives them the opportunity to upload receipts.

The amount that claimants receive, if approved, can vary. With proof of purchase, shoppers can take home up to 2 percent of the total amount they paid for weighted goods and bagged citrus, with a cap of $500.

I don’t keep grocery receipts from five years ago …

Fear not, you may still receive a little cash, though less than the $500 cap. If you submit a claim without documentation, you can receive between $10 and $25 , depending on the number of relevant items purchased.

When will I find out if I’m approved?

The final approval hearing is scheduled for June 12, 2024. If you qualify for a payment, money will be transferred to you electronically, or by check if requested. The deadline to object or comment on the settlement is May 22, 2024.

Emmett Lindner writes about breaking and trending news. He has written about international protests, climate change and social media influencers. More about Emmett Lindner

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