Financial services is no stranger to disruption. From fintech to blockchain and beyond, the industry has bobbed and weaved through a decade of constant change.
The good news is that this experience makes the industry uniquely positioned to lead through the challenges of COVID-19. The bad news is that those financial organizations that can’t rise to the task can lose the trust of customers counting on them in their time of need.
This is an important moment for the financial service industry, and those that can deliver consistently stellar customer experiences are more likely to rise to the top.
The key to great customer experiences
It’s been said that trust is the ultimate human currency. It can’t be bought and, once attained, can be lost in an instant. For financial institutions this is especially true, which is why the ability to deliver great customer experiences even while responding to the massive spike in customer requests is critical.
In a 2018 North America Banking Operations Survey, Accenture found 74% of bank operations leaders say customer experience is their top strategic priority. Creating the customer experiences that lead to enduring trust and loyalty begins with building a truly connected financial institution.
This goes far beyond creating a slick customer interface. Many financial institutions have focused their digital efforts on the engagement layer, but the key to delivering truly exceptional customer experiences is the ability to connect the front office to the rest of the organization.
In 2018, JPMorgan Chase spent about 40% of time in global operations on servicing client accounts, including answering queries. As we develop systems to better direct those requests, we will spend less time searching for answers and more time responding to client needs.
Fragmentation across systems and departments is the prime culprit for this damaging lack of agility and operational resilience. Because when the front, middle, and back offices can’t connect, customers can’t get the services and answers they need.
Reaping the rewards of connection
With today's growing cost pressures and low interest rate environment, margins are thinner than ever. Inefficiency is expensive—unwieldy processes and disconnected systems lead to lower productivity and soaring compliance and audit costs. The financial institutions that have already backed their engagement layer with connected operations are reaping the rewards.
According to a recent McKinsey analysis, scaling up to the entire global banking industry might generate new value of $30 billion or more, assuming core business processes representing 15-20% of spending could be digitally streamlined to improve productivity by 8-10%.