“To Sell And Not Serve”: Why Banks Get Digital Wrong With Customers

“To Sell And Not Serve”: Why Banks Get Digital Wrong With Customers
SHARE
THIS



Senior banking executives around the world are having a lend of themselves when they say core banking systems are holding back the shift to digital. Instead, there seems to be a cultural problem that puts the emphasis on sales ahead of customer needs and experiences. In simple terms, bankers don’t get digital.

Buried deep inside a report called “Sales or Customer Focused”, is this striking insight into the mind of banking leaders: “In spite of the lack of progress achieved, 48 per cent of respondents believe ‘customer centricity’ is an overused term. Moreover, 75 per cent state that banks have not concentrated efforts on improving customer services in recent years and remain focused on sales specific activities.”

The study into the global retail banking study, published by Misys and Efma, found that “The majority of banks (87 per cent) perform less than ten per cent of sales via digital, and for one in five banks this figure falls to less than one per cent of sales. In addition, only 12 per cent of customer acquisition is conducted via digital channels, proving banks are failing to fully exploit online and mobile to engage customers.”

Meanwhile, the bankers themselves believe that the heart of the their digital darkness lies with the core banking system. This is nominated as the number-one technology challenge.

More than sixty per cent of those surveyed said core systems — which take years to implement — are a barrier to optimising sales performance (note the focus on selling, not serving).

“Indeed, a third of banks view core systems as incapable of meeting the demands of the sales process, with 12 per cent referring to their banks’ core system as ‘highly incapable’. Examining the business impact of technology issues facing sales teams, slow time to market with new products and services is causing the most pain. Banks are also frustrated by an inability to create customer-driven, personal products and services.”

Among the key findings:

  • Three quarters of executives say banks haven’t concentrated efforts on improving customer services and remain focused on sales-specific activities;
  • Nearly half believe ‘customer-centricity’ is an overused term;
  • Overwhelmingly most banks globally perform less than ten per cent of sales via digital;
  • Sales via digital are forecast to jump from 13 per cent today up to 75 per cent in three years — but questions remain about how this will this be achieved.

According to Vincent Bastid, CEO, Efma, “The ambitious plans to drive the majority of sales via digital channels are unachievable in the current technology environment. Banks must develop a strategic link between digital channels and their ability to support customer experiences that — crucially — result in sales outcomes.

“Those banks that flourish will be customer-focused institutions, founded on core software and systems that can deliver better customer experiences as well as increase sales, all via an omni-channel approach.”

This article originally appeared on B&T’s sister site www.which-50.com

 

Latest News

HP & Spikes Asia Announce Finalists Of ‘Young Spikes Design Competition’
  • Media

HP & Spikes Asia Announce Finalists Of ‘Young Spikes Design Competition’

Ten teams of young creatives will vie for the prestigious Young Spikes Design Competition Award at Spikes Asia 2018, a three-day festival of creativity held between 26-28 September 2018. The competition garnered 123 submissions – the most of any Young Spikes competition – from executives aged 30 and under across the Asia Pacific and Japan. […]

Director Appointment Strengthens Corporate Affairs Specialist Wilkinson Butler
  • Media

Director Appointment Strengthens Corporate Affairs Specialist Wilkinson Butler

Corporate affairs agency Wilkinson Butler is delighted to welcome Nick Albrow to join its board as a director. Albrow joins chairman Peter Wilkinson and managing director Andrew Butler as the business builds on its reputation as one of the leading crisis and issues firms in Australia. Joining in September 2017 as an account director, Albrow has […]

Mastercard Marketing Chief Sarah Pike Exits
  • Marketing

Mastercard Marketing Chief Sarah Pike Exits

Mastercard marketing boss Sarah Pike has exited. Sadly, not via a half-pike somersault with twist, but the actual exit.

by B&T Magazine

B&T Magazine
Adobe Appoints New ANZ Marketing Director
  • Marketing
  • Technology

Adobe Appoints New ANZ Marketing Director

Adobe announces new ANZ marketing 'big cheese' who's set to go by the title of marketing director and not Queen Gouda.

by B&T Magazine

B&T Magazine
Publicis Media Agencies Named ‘Leaders’ By Independent Research Firm
  • Media

Publicis Media Agencies Named ‘Leaders’ By Independent Research Firm

Publicis Media agencies Zenith and Starcom were named a ‘Leader’ and a ‘Strong Performer’, respectively, in The Forrester Wave: Global Media Agencies, Q3 2018. Both agencies were among the select companies that Forrester invited to participate in this evaluation of the media agency landscape. Zenith received the second-highest score in the ‘Strategy’ and ‘Current Offering’ […]

Apostrophe Copywriters Is Landing In Amsterdam
  • Marketing

Apostrophe Copywriters Is Landing In Amsterdam

Apostrophe, Melbourne’s first copywriting collective, is launching a pop-up office in Amsterdam this September with Lauren Brumley, Apostrophe’s Head Strategist, at the helm. Since its inception in 2012, Apostrophe has continued its steady growth trajectory, expanding globally to accommodate clients in cities as diverse as Helsinki, NYC, Los Angeles, Kuwait and the Netherlands. In 2014 […]