Banks have consistently improved their customer experience over the last decade. Is this enough to battle the new digitally native entrants?
The fourth revolution has dramatically changed customer expectations of banking services. Banks have responded by moving from building user friendly banking portals and apps to value added services like Tikkie, Tellow or Yolt. However, Gartner predicts that by 2020 89% of all organisations will compete on customer experience alone, and also that most banks will be made irrelevant by 2030. PSD2 has just opened the market for new entrants.
So, what does this mean for the customer experience of banks?
In the Netherlands, many banks have made significant progress on the customer experience (source: KPMG NL Customer Experience Excellence analysis 2018). However, compared to (online) retailers, that set the base for the customer experience expectation, banks are still lagging behind. Customers find the processes cumbersome, and don't feel well understood by their bank.
Imagine the future when Amazon would introduce their "one click payment" principle to banking services, or Google would use their data set in understanding what banking services the client needs at that exact moment – how can incumbent banks differentiate themselves in the market and deliver real value to customers?
The Economist research shows that 80% of companies are seeing a change in how their customers want to access and pay for goods and services. Customers are willing to pay for the value they experience. However, for banking, our research shows that customers are rating the value banks deliver low. So despite the year over year improvements in customer experience, there is a disconnect between the customer experience investments and the value experienced. We believe that the customer experience leaders of the future will be those companies that combine the experience and economics of the customer journey rather than having an absolute desire to amaze. KPMGs Connected Enterprise framework helps clients prioritizing to get that balancing act right.
KPMG is recognized by VanGuard as leader in customer service consulting. Would you like to know more about how your bank is experienced by your customers, and learn more about how KPMG can help you improve this, contact us.
KPMG Up Close and Personal research in The Netherlands has covered 10 sectors, 209 brands over 5004 respondents over 6 pillars of customer experience.