CX for BFSI – Importance and why your organization needs it
Banking and Emerging Payments

CX for BFSI – Importance and why your organization needs it

Rupa Ramamurthy - 09.30.2022

Is your Customer Experience strategy scaling revenue growth? Customer Experience is the new marketing. Financial information drives financial resilience. Personalization and on-demand customer service being the frontline trends, having an intelligible and extensive CX design that supports the business’s strategic vision, is critical. A Bain survey highlighted that 50% customers demand preferential treatment and that they purchased financial products through personalized offers.

Why is Customer Experience (CX) the top priority for a business in 2022-23?

A survey by Microsoft states that 86% customers prefer to pay more if they experience better customer service. Meanwhile, Zendesk survey shows that 96% customers worldwide identify customer service as the deciding factor for brand loyalty. Salesforce research found that 76% customers believe it’s easy to switch brands for a better customer experience. SuperOffice CRM adds that 39% customers will not do business with the company for the next two years after a bad experience and the Temkin Group published a study and found that companies that earn $1 billion annually can expect to earn, on average, an additional $700 million within 3 years of investing in customer experience.

Long-Term Digital Vision with Customer Service in BFSI

The Financial Services sector is developing a long-term Digital Vision and Customer Service in BFSI to evolve as a partner-in-life strategy. A Cognizant report says that by 2023 banking and financial services expect to boost the percentage of revenue obtained through digital channels by 54% average. Utilizing technology to personalize and humanize the customer experience through the financial and banking lifecycle, while reinforcing compliance, fraud detection and ensuring financial well-being of customers, will create the future champions in the digital economy.

Let’s eyeball the essential components and key factors that help CX leaders meet and exceed expectations. Emphasizing a smooth and easy interactive UI for digital self-service will rebuild a close relationship between customers and their phones. Although the banking and financial services sector realized the need to improve the customer experience through enhanced self-service, there has not been much development in delivery mechanism for human advice, around lending, investment or small business needs. Beyond technology, deploying talented workforce through video chats with document sharing, combined with a back end that allows the organization to gain insights into their customer using smart CRM technology will improve a rich online experience.

Evolving Technologies in Customer Support for BFSI

Hyper-personalization is enabling BFSI firms to predict customer needs through behavioral data science and the use of Artificial Intelligence (AI) to offer relatable products and services to consumers even before they need them. Embedded finance is the latest business model that’s transforming the digital future. Embedded finance in banking is a banking-like service offered by non-financial players which replaces the checking or authenticating savings/current accounts provided by banking institutions. Embedded finance makes access to financial services fast, seamless and hassle-free, thereby improving customer satisfaction. This consumer-centered approach to digital banking is an opportunity for financial services to personalize customer journeys end-to-end through real time contextual communication.

In a digitally evolving world, companies with strong omnichannel customer support capabilities can retain on average 90% of their customers. According to Deloitte, client-centric companies are 60% more profitable compared to companies not focused on their users. Availability of multiple channels reduces inbound customer phone calls, reduces operational costs without compromising customer service quality, increases customer satisfaction across every touchpoint, fosters trust, increases loyalty and generates higher business revenue. Speed and efficiency remain the primary drivers of omnichannel experience.

Chatbots are raising the bar of CX Intelligence. Sophistication of mobile technology is helping us exchange details, authenticate and conduct transactions seamlessly, eliminating the need for human support. A well designed chatbot learns and converses like a human and answers ad-hoc queries in realtime and provides the same experience irrespective of the channel, mobile, web etc. The chatbot can seamlessly interpret common languages, it remembers customer preferences, learns from customer responses, suggests products and cross-sells effectively. They can be configured to send valuable reminders and regular alerts, such as bill payment deadlines or the delivery of specific documents for financial transactions. Financial institutions are investing in chatbots to deliver ‘contextual insights’, they are transitioning to ‘conversational banking’ and are viewing chatbots as new age contact center executives.

Importance of Analytics in CX for BFSI

Creating a balance between customer experience with security, privacy and fraud control is colossal. Fraud prevention is key to any financial institution. Customers want fast, efficient interactions, but they also want their identities and financial information guarded. Financial institutions are investing heavily on cutting-edge security and fraud tools that are invisible to the customer, they are also using intelligence, analytics and data to drive down some of the customer-managed security and fraud controls. Leading financial institutions offer proactive fraud alerts to customers using high-end fraud diagnostic tools. Their threat assessment control identifies current and future risks and vulnerabilities. Banks utilize optimization of fraud management processes and tools for customer authentication strategies, business rules, and other anti-fraud measures, thus enhancing the customer experience journey.     

Outsource Your CX Needs to Teleperformance

Achieving CX excellence through outsourcing. Every second the customer loses waiting for a solution is an inch closer to losing their loyalty. Research by Boston Consulting Group says personalization at scale can increase annual revenue by 10%. Lack of personalization, latency in service delivery and lengthy IVR wait times is spawning a gap between organizations and the consumer. The outsourcing industry bridges this gap by helping organizations improve business agility, survive the constantly changing business dynamics and combat unprecedented disruptions like the pandemic. The Global BFSI and Teleperformance affinity.

For 20+ years Teleperformance (TP) is the trusted CX partner for over 190 BFSI clients globally, including traditional, retail, digital banks as well as Fintech Companies, credit card providers, insurance providers, and payment processors among many others, the BFSI sector is the largest vertical for Teleperformance. As an extended enterprise, TP's attention to risk categories such as strategic risk, operational risk, regulatory & compliance risk and reputational risk are constantly monitored for privacy, security, quality of service, continuity of operations, oversight over the outsourced process, and compliance with regulatory requirements

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