Big Tech poses a serious threat to legacy banks. Google, Apple, Amazon, WeChat, Facebook – are all offering services that have traditionally been the purview of retail banks.
These companies have several advantages over traditional banks – large digital customer bases, proven transaction processes and interestingly, a higher level of trust.
In a 2018 Bain study, 29% of respondents said they trust at least one tech company more than their primary bank and 54% said they trust one tech company more than banks in general.
Big Tech companies are digitally advanced in both services and engagement methods. It is therefore vital that traditional banks catch up and stem the tide of customers signing up for alternative ways to bank, pay, save and invest.
How can banks transform digitally to retain customers?
Our experts view:
Achieving the right customer experience is vital if banks want to stop customers from trying alternate financial services offered by Big Tech. Broadly speaking, customers want the following when it comes to customer experience:
- Highly personalized products and services
- Relevant, easy to understand and contextual information
- Immediate and consistent service via any channel they choose
Not all of this can be achieved in the short term, but there is an opportunity to gain quick wins by improving customer communication.
Delivering relevant and personalized information contributes significantly to creating a great customer experience.
Customer communication can be used to address many elements that make up a customer’s experience of a brand. Providing the right information at the right moment saves time and helps to reduce anxiety that can be a factor in managing personal finances.
Furthermore, by gathering data on customer preferences, banks can improve the relevancy and usefulness of every communication.
Forbes says that customer experience is the new brand. To compete in today’s landscape, banks need to provide a better CX than Big Tech brands.
James Hall
Commercial Director, UK
Read more about how banks need digital technologies to compete with Big Tech
Striata is a leading provider of digital customer communication solutions that improve customer experience and advance the digital transformation of a company’s communication strategy.