The banking industry faces a double challenge. Due to regulations and risks, Financial processes have become extremely complex. Banks today are always on the lookout for the next regulation to comply with coming out of the nascent Consumer Financial Protection Bureau.
At the same time, CIOs in the industry are planning to allocate a larger share of their IT budgets to mobile and online initiatives, with 14% reporting these two initiatives as their number one priorities for 2015.
The combination of these two trends sees IT budgets in the banking industry going up 4.3% in 2015 over 2014, according to recent findings by research firm Ovum.
Consequently, the customer journey has become a major focus for banks trying to compete for the growing online market being driven by millennials (those born between 1981 and 2000).
So what is the customer journey?
At every click, swipe and button pressed, banks can learn more about who a user is and how to guide and take them to the next step of the purchase journey.
The journey begins the moment the customer enters the bank home page looking for a retail-banking product (loan, savings, investment advice, etc). The journey finishes when the customer petition has been approved.
Customer Analytics has become a key differentiator in the industry. During the customer journey a bank tries to get as much insight as possible on their customer. This includes:
There are several new and existing technologies that can be integrated in the origination and application process. Technologies like the ones mentioned below should be used to complement banking portals.
Powered by the intelligent use of these technologies, leading financial institutions can react based on a deeper understanding of their customers.
A great example of the use of big data is Bank of America. They leverage transaction and propensity models to determine which customers have a credit card or mortgage that could benefit from refinancing at a competitor, and they then make an offer when the customer contacts the bank online or through a call center or branch channels.
To learn more about how you can implement customer journey technologies to improve user experience, and avoid these customer journey "no-no's," check out Softtek’s Banking and Financial services solutions.