5 Qs With Shalini Warrier On CX In The Banking Sector
Banking is a highly commoditised product and increasingly the cost of switching between Banks is showing a declining trend. Federal Bank's research with customers indicates that the only real difference between banks would be the kind of customised bespoke experiences they give to customers. The power of 'one' that denotes a truly personalised experience for every customer will drive NPS (Net Promoter Score) up and such an experience can come only from the implementation of robust Customer Relationship Management (CRM) solutions with analytics as to the bedrock thereof.
Shalini Warrier, Executive Director and Head - Retail, Federal Bank witnesses a complete change in attitudes, behaviours and purchasing habits of customers and to manage isolation, they’re using digital to connect, learn and play and we expect that will continue, even after the threat of Covid 19 reduces. With the ease and convenience of fast-paced apps for shopping, food delivery, travelling etc, consumers have come to expect a similar experience from banks too.
Today, banks have started to recognise that there is a tremendous shift towards digitisation in the ecosystem which will further get amplified by the increasing number of tech advancements. Therefore, it is critical to understand customers’ digital body language, priorities and new buying behaviors in this new normal as they’ve become centred towards the most basic needs, sending demand for hygiene, cleaning etc. "To manage this core group, banks need real-time intelligence for this personalisation," she asserts.
Excerpts:
Q. Has there been an increased need for a more immersive/ deepened CX post-pandemic in the banking industry?
The modern financial services customer is mobile, tech-savvy, socially connected and is empowered with increasingly higher expectations around the customer experience front. In the case of financial services, if institutions are unable to deliver the experience they want, they have more options now than ever to switch to or engage with new companies that can satisfy their needs. As digital disruptors and economic uncertainty reshape the business landscape, customers are increasingly demanding digital services that meet them wherever they choose to engage.
In the post-pandemic world, the need for simple, contactless and digital has been increasingly evident among customers. To deliver a truly immersive experience, at a cost that is not prohibitively expensive, we have invested in advanced technologies, such as cloud, AI-based chatbots and virtual assistants, and collaboration applications, among others. Investments are being made in order to ensure business continuity and optimise their operations by upgrading their online banking and mobile banking systems.
Feddy, our conversational chat bot is a prime example of how AI is used effectively to deliver on customer expectations.
We have also been adopting open APIs, in partnership with fintech players, to create unique customised experiences for customers.
Q. What according to you are the key pillars of placing CX at the heart of your strategy and how are you going about this?
Today, the customer is at the heart of banking and its strategy, and it is only fair if CX is placed at the core of business operations. Federal Bank was one of the first movers in the BFSI space to embrace digital transformation in India.
There are three key pillars of placing customer experience at the core of our strategy:
1. Our core theme is "Digital at the fore, human at the core." What this means is that we make sure we have all digital technologies and can meet all of our customers' digital needs. Moreover, we value human relationships and want to be available for our customers when they need assistance. We have Digital Banking Ambassadors in all the major cities and Digital Angels in key branches as examples of this
2. Our second principle is "Light Branch, Heavy Distribution" From 2010 to 2015, we have significantly increased our physical distribution. We haven't really expanded our physical distribution since then, but that doesn't mean we haven't reached out to customers. For instance, we have invested in Relationship Managers across business units. The work that we are doing with Fintechs is the most visible example of our Heavy Distribution. Our future expansion will involve branches too; however, the look and feel of the branches will change to make them lighter in terms of activities but highly productive from a customer experience standpoint
3. The third principle is the effective use of data. If we closely look at this third principle this is about more than just effective use of data; rather it is about converting data to information and deriving insights from it. Our goal with this is to provide a better experience to our existing customers while also reaching out to new and potential customers by leveraging data-driven insights.
Q. What according to you is the role of emerging technologies like AI, Cloud, and SaaS in shaping the future of the banking industry?
We truly believe that efficiency is the key and we welcome technologies that help us raise the bar further whether it is AI, Cloud or SaaS-based applications. The pandemic has given precedence to digitalisation more than ever and the pace and scale at which technology disruption is happening since last year are truly fascinating. Banks have to be able to meet customers’ needs in more ways and places and technologies are potentially uplifting the health of India’s banking sector.
As for the future, judging by the current trends and the increasing shift towards digitisation, we foresee the banking industry transforming completely and technology will be kept at the center of this transformation. These technologies have opened up a slew of opportunities for banks ranging from human resource management to streamlining financial processes and of course customer experience like we just talked about. In fact, new and emerging FinTechs are recognising the benefits these technologies bring in and are already banking on it. This is only going to multiply in the coming years.
Q. What have been your key partnerships in terms of implementing a seamless CX experience?
We identified a critical gap in our ability to provide holistic sales, service, and marketing experiences to customers, which triggered the development of our entire CX proposition with Oracle. As said, one of our principles is “Effective use of data” and Oracle’s CRM solution (delivered through our implementation partner, Infosys) fits right into it. To give you an example, we recently launched our credit cards, and during this phase of the launch, we focused on providing pre-approved credit cards to existing customers. We identified the right set of customers who would be eligible for each of our three credit card variants using a massive amount of analytics. We drove offers to them centrally using the email and SMS marketing capabilities from the Oracle CX solution. As part of this process, the customer receives an email/SMS, clicks on the link, and with 3 clicks, the virtual credit card is delivered to his Mobile Banking app, which he can use immediately for ecommerce purchase. Our vision is to remain completely connected in the ‘To Be’ world of CX and Oracle has been a great support on that front.
Q. What are your views on the era of ‘phygital’ experiences and how cloud technology and CX can blend physical and digital experiences to support brands in their journey?
The BFSI sector in India is going through an unprecedented transformation. Fintechs are increasingly prevalent, and digital disruptors are enticing customers with new products and optimised, holistic CX journeys.
Moreover, customer expectations are changing with almost three-quarters of customers wanting a seamless phygital banking blend. As I mentioned before, customers are demanding a Swiggy like an experience from their Banks and this would be possible only through the use of contemporary technology.
Technology like Cloud and CX solutions help to ensure a truly omnichannel experience for customers. This is best encapsulated in our mantra of “Digital at the fore, human at the core”.We have unique and differentiated digital banking capabilities for customers; however, we pride ourselves on the fact that our human relationship is at the core of what we offer customers. Through our CX solutions, we ensure that customers can switch from a digital experience to a physical experience – either at the branch or in a Contact Centre – quite effortlessly and with no friction in the flow of the transaction. That ensures a truly phygital experience for the customer.
