Banking on customer entricity
EMEA Banking Practice
Banking on customer centricity
Transforming banks into customer-centric organizations
3
Banking on customer centricity Transforming banks into customer-centric organizations
Around the world, ever more banking customers are feeling discomfort. They despair at terms of contract they cannot understand, are shocked by hidden costs, and bristle at sluggish complaints handling. Demonstrations on Wall Street and elsewhere around the world accusing the industry of greed and corruption have further shaken customer confidence. To brush off these expressions of consumer sentiment as simply outliers or overexaggerations would be mistaken. Banks should see these signals as a call to action. What is needed is a fundamentally new direction – a business model that consistently puts the customer at the heart of all activities. Companies from other industries achieve huge success using dedicated customer centricity. Banks have the chance to not just enhance their customer satisfaction but achieve sustainable growth and above-average profitability by embarking on a customer-centric transformation.
Why customer centricity matters
Most banks have never created a close relationship with their retail customers and understand little of their actual needs. Tailored products and services are rare.
Instead, complaints about inadequate advice, disproportionately high interest rates for overdrafts or call center issues surface in the news with depressing regularity.
Customer resentment was already running high before the financial crisis. Since then, trust in banks has plummeted even further.
At the same time customers have found a new, loud mouthpiece in online forums and consumer portals. News about negative experiences can spread through these media like wildfire. Initiatives like the “Occupy Wall Street” movement have attracted media coverage as never before.
Banks realize that they can no longer afford to develop products
Banking on customer centricity
Transforming banks into customer-centric organizations
3
Banking on customer centricity Transforming banks into customer-centric organizations
Around the world, ever more banking customers are feeling discomfort. They despair at terms of contract they cannot understand, are shocked by hidden costs, and bristle at sluggish complaints handling. Demonstrations on Wall Street and elsewhere around the world accusing the industry of greed and corruption have further shaken customer confidence. To brush off these expressions of consumer sentiment as simply outliers or overexaggerations would be mistaken. Banks should see these signals as a call to action. What is needed is a fundamentally new direction – a business model that consistently puts the customer at the heart of all activities. Companies from other industries achieve huge success using dedicated customer centricity. Banks have the chance to not just enhance their customer satisfaction but achieve sustainable growth and above-average profitability by embarking on a customer-centric transformation.
Why customer centricity matters
Most banks have never created a close relationship with their retail customers and understand little of their actual needs. Tailored products and services are rare.
Instead, complaints about inadequate advice, disproportionately high interest rates for overdrafts or call center issues surface in the news with depressing regularity.
Customer resentment was already running high before the financial crisis. Since then, trust in banks has plummeted even further.
At the same time customers have found a new, loud mouthpiece in online forums and consumer portals. News about negative experiences can spread through these media like wildfire. Initiatives like the “Occupy Wall Street” movement have attracted media coverage as never before.
Banks realize that they can no longer afford to develop products