When the Coronavirus first made headlines last November, I could not have fathomed the chaos it would wreak across the globe. Like many I listened, and then continued with my life assuming a virus in the far east Asia would have no impact on me in Luxembourg. Eight months later and we have seen lockdown measures put in place, borders closed and all sense of normalcy cease.
This crisis has had a significant impact on banks and the traditional relationship with the customer. Banks need to adapt alongside the customer as we continue in this pandemic period and beyond. This blog highlights the six key areas banks can look at and invest in to champion customer loyalty in any situation.
What impact did the crisis have on banks?
In order to remain functional, businesses made dramatic changes overnight. Banks saw radical operational and IT transformations. However, it’s been difficult to get a real sense of how the banking industry is coping months later. In order to better understand the situation, KPMG teamed up with the Digital Banking and FinTech Innovation Cluster of the Luxembourg Bankers’ Association (ABBL) to conduct a survey. 43 of the ABBL’s members participated, and the results reveal the main impacts, and how transformation will continue in a post COVID-19 reality.
Banks were able to react quickly and maintain service levels
We know that banks have faced many challenges during the crisis, but our data shows that they did a great job of limiting the impact on customer relations. Two in three institutions managed to be fully operational within five working days of lockdown.
Customer service may even improve in the future
Almost two in three banks say the crisis helped accelerate long-standing digital initiatives. Automation or digital signature projects were silently waiting in drawers and their reemergence is great news for the customer. Shorter wait times and speedier service will likely follow when the projects come to fruition in a few months’ time.
Tips and guidance on championing customer loyalty
The way that banks managed to maintain great customer experience and outstanding customer service during the crisis will undoubtedly be the cornerstone of their growth going forward.
At KPMG, we have defined what we call the “Six Pillars of Customer Experience”—the universal principles that govern all positive human experiences with both customers and employees: empathy, personalization, time and effort, expectations, resolution and integrity.
At the best of times, these pillars are powerful tools for creating successful, sustainable and ethical businesses. But with the global threat of COVID-19, they can act as an invaluable guide to understand behavior in uncertain times. Simply put, they are a set of easy-to-follow principles that help you take a “customer-first approach” in any situation.