An improved user experience can help retain customers plus find new revenues streams.
Customer experience – delivering an equal or better user experience than fintechs
As a bank, you are responsible for ensuring services are delivered securely while providing a good customer experience that rivals new agile competitors in the form of neo-banks and fintechs. In our experience, this means you are left with little choice – either you partner, merge or acquire a competitor or you transform your operations. If not, your customer journey roadmap will get held back by legacy systems and operating processes that can’t manage the necessary “escalating” change.
Automating card services and offering customers instant availability options and thus increase profitability, through new services and features.
For instance, virtual cards can be instantly issued and made available for purchases in e-commerce or uploaded to different wallets for immediate use in brick and mortar stores, before the physical card even arrives. Customers can set their own PIN code, create reminders, should they forget the PIN, and even create rules and restrictions for use, i.e. daily limits and geographical restrictions – something that we have found is becoming more and more popular among users.
New revenue stream segments
In recent years we’ve all seen how the margins within the consumer business are shrinking, especially now that there is a cap on interchange rates in Europe. Therefore, there is a greater need to explore new business segments that offer higher margins.
Providing new services to corporate clients is the perfect example of this. Not only can a corporate client benefit from all the above mentioned services, but through automation, you could also provide them with the insights and solutions necessary to help them control corporate expenses, drive savings and grow their businesses. We believe new services such as these, will be instrumental for banks and financial institutions to secure long-term relationships with key corporate clients. And just as importantly, it will enable you to grow your customer base – by entering new customer segments and gain access to new revenue streams.
Go beyond a typical commercial card solution and deliver something that will enable you to stand out in what is becoming a crowded marketplace! This could include such things as offering unlimited, multi-hierarchy account and transaction authorization processes that resemble corporate client’s structures and internal policies, offering different limits and restrictions on each hierarchy level. An advanced commercial card solution will also provide much more flexibility when it comes to reporting and billing options based on a client’s requirements moving forward.
Internal processes – the key to delivering optimal customer experiences
As great as all these technical opportunities sound, in our experience we know that an internal shift is also required. Modern architecture and new, dynamic systems will have to be reflected in internal processes– which will require change. In many cases customers are looking for a new modern platform to embrace their digital journey however don’t put enough focus on their business and operational processes which should be reviewed and challenged as well. For example – a typical card issuing process often takes over a week as usually there are internal application approval processes even for low risk segment and a card is delivered in the post, before a customer can use it for the first time. Digital experience required by the customers change this, and your internal processes must be able to cope with the changes.
At the end of the day, it’s going to come down to a question of how to act, not if to act. You can start today by reviewing your customer experience and fine-tuning your internal processes. The quicker you start, the quicker you can secure your customer base and explore new opportunities.