The return of confidence in the
While questions remain to be resolved on the restructured debts in their lending portfolios,
However, the key challenges for the future may lie not with the coming round of debt restructuring but with addressing rising customer expectations. Around the world, according to the
The report noted 33 per cent of customers gaining confidence in the past 12 months and only 19 per cent losing confidence, compared with a 40 per cent decline in the previous survey. "While much of the improvement may simply be a restoration of the confidence lost in the wake of the global financial crisis, this improved sentiment can only help financial institutions as they work to solidify and expand relationships with their customers.
"There is significant business opportunity associated with customers who are true 'advocates', those who are very likely to recommend their primary financial services provider (PFSP). Specifically, 44 per cent of advocates opened new accounts or services at their PFSP in the past 12 months..."
BOOSTING WALLET SHARE
With a majority (85 per cent) defining their PFSP as a bank, EY described this 'as an opportune time for banks to increase advocacy and expand their customer relationships'. The report says that customer experience drives not only trust, advocacy and referrals but also the amount of business customers place with their PFSP.
Financial institutions looking to boost their share of customer wallet and broaden their range of product take-up should, said EY, be focusing on three key areas:
??making banking simple and clear through transparency of fees, simplicity of offers and communication and delivery of an omni-channel experience;
??helping customers make the right financial decisions in a complex environment through more and better advice and through greater use of data and digital channels to offer customer empowerment; and
??working with customers when problems arise, becoming their advocate through improved problem resolution capabilities.
Separately, in a report sponsored by
"If you fail to look after your customers, it's not long until your business will fail. Retail companies know this better than most and could take advantage if retail banks falter. It is clear banking has fallen behind in the digital age, but now it needs to catch up," said
More optimistically, EY said, "After mastering the basics of day-to-day banking, banks have a tremendous opportunity to differentiate by helping customers achieve their financial goals. Thus far, many of the opportunities to realise benefits from improving the experience have related to simplifying it, which often equates more to reducing pain points than to adding incremental value. Also, the introduction of technology and self-service channels into the customer experience delivered a level of convenience that customers quickly integrated into their daily lives. Constant access to banking and the security procedures enabling banking to be conducted in a safe manner now represent seemingly universal requirements and minimum expectations for which customers generally are not willing to pay more."
In other words, the bottom line is this: the seductive siren call of technological development for its own sake must not be allowed to drown the service requirement that should underpin any successful financial product set, whether targeting the retail or corporate client.
In January this year
Recent regulatory developments, such as pre-emptive measures to curb property speculation, the imposition of large exposure limits and the setting up of a credit bureau, are steps in the right direction
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