“In the aftermath of the financial crisis, retail banks around the globe are struggling to make a positive impression on customers. Differentiating on price and product innovation is becoming increasingly difficult, and firms face the added complications of changing customer preferences and increasingly stringent regulations.” This is per The World Retail Banking Report 2011 – published by European Financial Management and Marketing Association (EFMA), the Italian bank UniCredit and Capgemini. The report stated that “delivering a positive customer experience is one of the few levers banks can use to stand out in today's market.” Other approaches that banks have relied on in the past to differentiate themselves – low prices and innovative products in particular – are losing their ability to provide an edge.
When new delivery channels were created to complement branches – first ATMs, then telephone banking, online banking, self-service kiosks and mobile banking – many believed that branches were in terminal decline around the world. Four or five years ago that decline was largely halted, and in many cases reversed, as banks realized the value of face-to-face contact and a high profile brand presence. Today, the typical delivery model is cross-channel. All channels are valued, and used as part of an integrated distribution strategy.
Even though customers regard quality of service as the most important aspect of their banking experience, they also value relevant, competitively priced and innovative products, and effective delivery channels. The challenge for banks, therefore, is to keep abreast of developments in these two areas. Learn more.
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