A changing environment for banks
Keeping up with shifting consumer behaviors is no small feat. Throw a global pandemic into the mix, and things get even more complicated. The demand for better customer experiences in banks is a clear example of how the world has changed.
COVID-19 fast-tracked digital transformation across all industries, but especially in the banking, financial services and insurance industries, where consumers needed ways to interact with these institutions virtually … and virtually overnight.
Examining customer behavior
As institutions respond to this demand for digital, Signavio set out to take the pulse on consumer behavior shifts and explore how these changes are affecting the way financial institutions do business.
A survey of 1,000 U.S. adult consumers in April 2021 shows that customer experience (CX) is the foundation of the banking industry, fueled by digital capabilities and offerings. With an increase of digital banking during the pandemic, banks and financial institutions need to address this potential Achilles heel.
Digital and CX are interconnected
The pandemic has changed consumers’ approach to banking, with 53% using digital banking more now than they did before COVID-19. Despite this shift to digital, and the demand for better customer experiences from banks, many organizations have not moved quickly enough to capitalize on the opportunity to provide value through digital experiences.
Find out more about the challenges facing banks and financial institutions with our infographic on pandemic paradoxes. (No registration required!)
Consumers are eager to use digital banking services, but most are not impressed with the current digital offerings:
- More than half of consumers are still more likely to bank in person (56%)
- 54% would switch banks if their new bank offered an improved digital experience
- Only one-third (33%) will continue using digital banking more following the pandemic, while 20% plan to go back to brick and mortar
It’s also clear that digital capabilities and customer experience are tightly intertwined:
- 47% of consumers cited digital capabilities are an important factor when choosing a bank
- 48% noted great customer service is also something they take into consideration
Operational excellence cannot be ignored
Banks understand the importance of digital banking transformation and improving customer experience, as each of these have been identified as a top priority. However, innovation and operational excellence — key drivers of successful digital customer experience strategies — landed at the bottom of the same priority list.
Adding to this paradox, PwC found that 61% of bankers say a customer-centric business model is “very important,” but only 17% are “very prepared” for it.
In order to take a customer-centric approach and create real value for customers, banks must first understand what the customer needs. This can be difficult in the financial industry, as processes and data often span multiple systems and business units through complex workflows, making it difficult for banks to grasp what their current processes actually look like.
Process mining offers a solution
This is where process mining comes in. Business process intelligence gives financial institutions the tools to analyze processes, identify where they can be improved, and increase the speed and accuracy of process execution.
By tying process mining to customer journey mapping, banks can better understand customer behavior and predict opportunities to influence greater customer satisfaction, including the demand for better customer experiences from banks.
The success of financial institutions hinges on how well banks deliver on customer wants and needs. In fact, our survey found that 51% of consumers would invest more money if their bank paid more attention to them. That's a payment banks and financial institutions should be more than happy to make!
How Signavio can help
Signavio technology combines process mining for an inside-out approach to business improvement, and process modeling to support business transformation by designing and testing processes that are entirely new. In practice, this means:
- Reducing complexity, improving controls, enhancing documentation and retention practices
- Improving governance and communications across teams
- Mapping core processes in preparation for cost-reducing automation and change initiatives
- Identifying opportunities for new digital experiences
The combined approach is what sets the Signavio approach apart from single-purpose tools, and it means we can support banks and financial institutions to optimize existing business processes to reduce costs, enhance performance, and safeguard their competitive advantage.
To learn more about how process mining can address key challenges for banks and financial institutions, contact us or register now for a free 30-day trial of the SAP Signavio Process Transformation Suite.