“Experience” can be defined as “an event or activity which leaves a lasting impression”. From a customer’s perspective, this lasting impression is usually the result of needs well fulfilled. Organizations that deliver exemplary customer experience share a set of integrated business disciplines that drive their success. Their efforts are paid back in the form of higher customer loyalty. In the service and relationship-driven business of banking, customer experience is an important competitive differentiator. It is also becoming a key driver of innovation, as the realization that experience will drive customer retention, growth and perhaps even future sustainability, sets in within banks. Technology integration is playing a key role in enabling differentiated customer experience through innovation.

1. Enhancing Retail Banking
Customer Experience
Universal Banking Solution System Integration Consulting Business Process Outsourcing

2. “Experience” can be defined as “an event or banking, which is currently riddled with tedious
activity which leaves a lasting impression”. IVR menus and authentication procedures. If
From a customer’s perspective, this lasting banks were to introduce voice verification
impression is usually the result of needs technology to automatically confirm the caller’s
well fulfilled. identity, it would make phone banking hassle-free.
Organizations that deliver exemplary customer Broadly, the pursuit of better customer experience
experience share a set of integrated business revolves around:
disciplines that drive their success. Their efforts
are paid back in the form of higher customer loyalty. 1. Improving speed, efficiency and personalization
of service
In the service and relationship-driven business
of banking, customer experience is an important 2. Finding out other ways to retain customers
competitive differentiator. It is also becoming a
key driver of innovation, as the realization Here, it must be said that enriching customer
that experience will drive customer retention, experience does not mean acceding to
growth and perhaps even future sustainability, every customer request. Rather, it involves
sets in within banks. Technology integration is understanding the needs and expectations
playing a key role in enabling differentiated of the customer, working out practical ways to
customer experience through innovation. meet them, institutionalizing this knowledge
as official policy, and most importantly, ensuring
Need for Enhancing Customer Experience that it is implemented.
Starting from the time of the first contact and Measures for Achieving Customer Satisfaction
continuing until the association lasts, a bank may
meet, exceed or belie a customer’s expectations. Specifically, a bank needs to do the following to
improve customer experience:
Today, a customer planning to buy a product or
service is confronted with a bewildering array of • Communicate
options. Faced with two or more similar products,
the customer is more likely to choose the one It should schedule regular team meetings
offered by a company with a track record of with the branch office staff to reinforce desired
sustained positive customer experience, even attitudes and motivate them to deliver
if it is priced at a premium. Clearly, customer excellent service. It should also highlight the
engagement and experience is crucial to importance of the “customer first” policy in
competitiveness and revenue realization. every internal communication.
Enriching the Retail Banking Customer Experience • Create Distinct Positioning
Building great customer experience is a The bank should aim to create not just good,
complex and strategic endeavor. A judicious mix but distinctive customer experience, resulting
of technology and human intervention by staff that in a unique positioning for its brand.
is both courteous and competent is required to
make any banking experience memorable. • Eliminate Roadblocks
Technology can create positive experience in Each division of the bank should identify the
many ways. Consider the example of a customer obstacles that prevent it from enhancing
who withdraws a particular amount of cash from customer service and implement steps to
an ATM machine on a regular basis. The ATM eliminate them.
can, by default, take the customer directly to this
transaction to simplify his task. • Improve Organizational Culture
Another area where technology could improve The manner in which a bank serves its
the quality of customer experience is phone customers reflects its organizational culture.
Enhancing Retail Banking
Customer Experience

3. Therefore, positive customer experience can The “Customer Experience Index”
only be delivered when the bank’s culture is
oriented towards it. A recent report on the state of global retail
banking, by a leading consulting firm, has
• Innovate introduced a “Customer Experience Index” based
on the most important factors that contribute to
The bank should continuously look for new
positive customer experience. Banks can gauge
ways of satisfying the customer. Besides
their position against this indicator and bring
studying successful customer experience
about improvement in the areas where they lag.
enhancement initiatives conducted by its
competitors, the bank must leverage new Going forward
technology tools, such as social media, to
continuously engage with customers to Enhancement of retail banking customer
ascertain market trends, take feedback and experience will help improve customer acquisition,
co-create towards new product development. retention and contribution per customer – factors
vital for organic growth and success. In the
Focus on Perception coming years, the banking sector will witness
intense competition from traditional and non-
The processes to improve perceived service
banking sources. Banks will have to deal with
quality which will ultimately enable the delivery
rising consumer power and keep pace with
of a differentiated customer experience, should
innovation. In addition, they will have to ensure
be designed after deliberating on three
that their customer engagement programs –
different aspects:
which could make or mar their fortunes – are
robust and of high quality.
Perception of the customer
• What are the factors that satisfy, delight and Banking channels will play a key role in the
put off the customer? delivery of customer experience. The retail
banking study mentioned earlier reinforces what
• How does the customer rate the bank’s we already know by observation – namely, that
service vis-à-vis that provided by others? for a customer, experience is all about what
transpires at the touch point.
• How do the above differ across the various
customer segments served by the bank? Therefore, banks must not only provide high
quality experience on every channel, but in this
Perception of the employee or service provider age of multi-channel banking, also ensure a
unified and seamless one that enables customers
• How do bank employees perceive the
to switch effortlessly between touch points.
bank’s ability to deliver on critical drivers of
customer value and address drawbacks, Finally, although many banks have launched
resolve customer problems, communicate customer engagement programs, very few have
effectively, etc.? been able to show tangible results. Re-launching
• How do employees themselves experience a brand or revamping a channel or branch network
the bank? What drives their perception of is futile without a well-designed and perfectly
exceptional experience? executed plan for enhancing customer experience.
Operational Perspective References
1. www.wordreference.com/definition/experience
• Regardless of the above perceptions,
does the bank actually deliver reliably, 2. www.businessweek.com/magazine/content/
consistently and accurately on issues that 06_48/b4011429.htm
matter to customers and employees? 3. www.peerinsight.com
Enhancing Retail Banking
Customer Experience

4. 4. www.peppersandrogersgroup.com/view. 6. www.growthconsulting.frost.com/web/images.
aspx?docId=32646 nsf/0/95A67C0FAF9ACEDB802571CA00548
5. Leading European Financial Institution AB1/$File/Successful_Voice_Verification_
Implements Voice Verification Biometrics Implementation_VoiceVault_July% 2006.pdf
to Enrich Customer Experience, Frost and
Author
Sullivan, July 2006
www.growthconsulting.frost.com/web/images. Vijayan Sundaram
nsf/0/95A67C0FAF9ACEDB802571CA00548A Senior Consultant – Finacle
B1/$File/Successful_Voice_Verification_ Infosys Limited
Implementation_VoiceVault_July%2006.pdf
Enhancing Retail Banking
Customer Experience