3 Things Banks Have to Do Right Now to Stop Losing Customers
More and more, financial consumers are voting with their feet and moving on from banks they believe underperform on customer service. A July study from cg42, a Wilton, Conn., management consultancy says that customers will pull out $92 billion in deposits from U.S. banks in the next year due to increasing dissatisfaction.
"Customers still feel that their financial institutions aren't serving their best interests and they're frustrated," says Stephen Beck, founder and managing partner of cg42. "Comparing the brand vulnerability of big banks from 2011 to today shows that while the industry suffers from many of the same frustrations, institutions that addressed their customers' concerns significantly improved their competitive position in 2013."
So what can banks do to improve customers' banking experiences? Industry experts point to a few emerging trends from institutions designed specifically to keep deposits where they are and bolster their relationships -- and reputations -- with customers:Get face to face. To rebuild trust, there is a big push for banks to get employees in front of their clients, face to face, and begin rebuilding one relationship at a time. Even in the digital banking age, business customers still want to have face-to-face contact with their bank. "The only way to do that is to put feet on the street and begin having conversations with clients," says Corey Ross, co-founder of Finagraph, a financial services technology company. "One important caveat is that the banker must come to the table with knowledge about the customer, which is why so many financial institutions have focused on increasing the business acumen of their bankers either through internal or external training programs." The Relationship Banking Academy. Educate clients. Banks need to be experts who can help consumers solve financial problems. "Sponsoring educational opportunities and events for their clients on topics such as financial management, QuickBooks management and business succession and transition are all good ideas," Abrahamson says. These are just starting points for banks looking to improve their customer experience. But banks have to start somewhere -- or risk losing billions in assets.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV