“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

 

Please login with linkedin to comment

#PRWisdom Advertising Standards Bureau einsights inskin media

Latest News

Former Agency Execs Launch Car Service Summon
  • Marketing
  • Media

Former Agency Execs Launch Car Service Summon

Former agency executives Tim O’Neill and Tim Fouhy have launched the auto technology startup Summon. Australia’s first full e-commerce service for prestige cars. O’Neill and Fouhy both worked together at Accenture Interactive, before co-founding Reactive a digital agency bought by Accenture in 2016, now they’ve combined their knowledge and expertise to create Summon. Summon offers […]

Hootsuite Shares The Top Social Media Trends Of The Tokyo 2020 Paralympic Games
  • Media

Hootsuite Shares The Top Social Media Trends Of The Tokyo 2020 Paralympic Games

To honour the fantastic feats of the Australian Paralympians, Hootsuite has revealed the top trending hashtags and social media data of the Paralympics. The top trending hashtag during the Paralympics period, #tokyo2020, received over 38,000 tweets and retweets, amounting to 1.7M+ impressions, while other popular hashtags included #paralympics, #readysettokyo and #paraswimming. According to Hootsuite’s research, […]

SOON, Think Tank Giving Insights Into Future Trends, Officially Launches
  • Advertising

SOON, Think Tank Giving Insights Into Future Trends, Officially Launches

SOON, a futures think tank focused on human insights, has launched today tracking trends, developments and disruptions across people, products and the planet. Led by internationally renowned futurist, social scientist and trend forecaster Sarah Owen (pictured centre) in partnership with TABOO directors Andrew Mackinnon (right) and James Mackinnon (left), the independently Australian-owned futurist company uncovers […]

iHeartPodcast Network Australia Launches SAS Australia Debrief Podcast
  • Media

iHeartPodcast Network Australia Launches SAS Australia Debrief Podcast

ARN’s iHeartPodcast Network Australia has announced a new podcast, SAS Australia Debrief hosted by 2020 recruits Merrick Watts and Sabrina Frederick. The podcast is made for anyone that can’t get enough of Aussie celebs putting themselves through the toughest test of their lives on the Seven Network’s hit show SAS Australia. Or anyone that wishes […]

Rakuten Advertising Shares Blueprint For Affiliate Marketing
  • Technology

Rakuten Advertising Shares Blueprint For Affiliate Marketing

Rakuten Advertising has launched ‘A 5-Stage Blueprint for High-Performance Affiliate Marketing’, designed to educate and inform both advertisers and publishers about the strategic role that the affiliate channel is now playing in marketing strategies. The blueprint is based on input from members of the Rakuten Advertising International Collective (RAIC), comprising affiliate marketing specialists from leading advertisers […]

EngageTV Launches Metro Connected TV Campaign In Sydney And Melbourne
  • Media

EngageTV Launches Metro Connected TV Campaign In Sydney And Melbourne

EngageTV, Australia’s most sophisticated CTV & BVOD service partner, has today launched a Sydney and Melbourne metro Connected TV campaign to help business owners and marketers better understand what can be achieved with CTV.

by B&T Magazine

B&T Magazine
Adland State Of Originality To Return For Nine’s 2022 Origin Series
  • Media

Adland State Of Originality To Return For Nine’s 2022 Origin Series

Nine has announced the return of State of Originality, Australia’s biggest advertising prize, with $1 million again up for grabs to the brand and agency that creates the most original ad in the 2022 State of Origin Series. This year Nine launched State of Originality, challenging Australia’s marketers to help make State of Origin not […]