Most financial institutions would like to think that their customers view them in a favorable light. They want their customers to appreciate the effort they put forth to bring them the best technology and products they can find.
Sure, there are some finer details that haven’t been completely smoothed over—like the two different passwords for online banking and the mobile application; the “online account opening” that still requires the customer to visit a physical branch; or the “real time” card alerts that are more of a “couple of hours after the fact” alerts.
The customers won’t mind these shortcomings, right? They understand that your bank has their best interests at heart. They can overlook those little inconveniences, or develop workarounds to navigate applications that don’t play well together.
Not so understanding
Let’s gain some perspective. In 2016, Digital Banking Report completed a study called The Power of Personalization in Banking which examined consumers’ most valued aspects of their financial institution and how they feel about their financial institution. The study showed that only 34% of consumers believe their financial institution has their best interests in mind, while 43% of financial institutions think their customers believe their financial institution has their best interests in mind.
Additionally, 57% of consumers think their financial institution is a necessary utility, while 38% of financial institutions think their customers believe the same.
The data in Digital Banking Report’s study shows a significant perception gap between financial institutions and their customers, and that financial institutions consistently believe their customers think more of their bank than they actually do.
In general, consumers are not a forgiving bunch. They may temporarily tolerate your “not actually free, free checking” or a password for online banking, and another for the mobile app.
But with financial institutions adopting convenient new technologies and fintechs making it even easier to bank without leaving the couch, your customers won’t stick with you for long if the experience continues to be less than convenient.
Also, remember that your customers don’t see the “behind the scenes” processes at the bank. They don’t understand that your core processing vendor doesn’t want to play nicely with your mobile application vendor. They don’t know you’re trapped in a contract with your outdated online banking vendor for the next five years.
People want it now
And they don’t care—they just want their applications to work. When their applications don’t work, they blame your bank, not your vendor.
Although it may not technically be your fault that your bank’s digital front is not as seamless and snag-free as you wish, your customers don’t perceive it as such.
What they may be seeing is a bank that is cutting corners, a bank that is unable to keep pace with the modern world. They see a bank they don’t want to be associated with.
- Third-Party Risk Management “Essential” As More Banks Partner with FinTechs
- M&A: First Western Announces Purchase of State Bank of Lismore
- Majority of Americans Reliant on Credit Card Rewards During Holidays
- Congress Votes to Scrap CFPB Small Business Lending Data Rule
- FDIC “Missed Opportunities” in First Republic Bank Supervision