Banking on Better CX:
Strategies for Improving Customer Satisfaction in BFSI

Banking on Better CX: Strategies for Improving Customer Satisfaction in BFSI

The Banking, Financial Services, and Insurance (BFSI) industry stands at the forefront of global economic growth, undergoing a transformation marked by dynamic technological advancements and shifting customer expectations. Projected to reach a staggering $29.1 trillion in market value by 2023 (Market Research Future), the sector is experiencing seismic shifts such as the rise of disruptive fintech, the implementation of blockchain technology, and a relentless pursuit of enhanced cybersecurity. Mobile and online banking are dismantling traditional banking models, while insurers leverage digitalization for personalized services and streamlined claims processing. Amidst regulatory changes and fierce competition, the BFSI industry is poised for unparalleled innovation and sustained expansion.

The intersection of customer experience (CX) and the BFSI industry has become pivotal in shaping the competitive landscape. With evolving consumer expectations and digital transformation accelerating across sectors, the BFSI realm faces a paradigm shift. According to a report by PwC, 73% of consumers consider experience a vital factor in their purchasing decisions. Moreover, in a survey by econsultancy, 68% of BFSI executives believe CX is a differentiator for their brand. As technology continues to reshape the industry, understanding and enhancing CX have become imperatives for BFSI players to thrive in an increasingly competitive market.

The Future - CX in BFSI

The future promises a dramatically transformed landscape for customer experience (CX) in BFSI. Customers will crave a truly holistic financial experience. The customer expectations will continue to evolve, demanding a seamless, hyper-personalized, and frictionless experience across all touchpoints. They will expect their bank or financial institution to not just manage their money, but to act as a trusted financial advisor. This includes proactive financial guidance, personalized product recommendations based on real-time data and spending habits, and seamless integration with third-party financial apps. Security and data privacy will also be paramount, with customers demanding complete control over their financial information.

Technology will be the cornerstone of this enhanced CX. Artificial intelligence (AI) will power hyper-personalized experiences, tailoring financial products, investment advice, and even risk management strategies to individual needs. Chatbots powered by natural language processing (NLP) will evolve into virtual financial assistants, capable of handling complex inquiries, resolving issues in real-time, and providing 24/7 support. The rise of augmented reality (AR) and virtual reality (VR) technologies could create immersive experiences, allowing customers to virtually visit branches, visualize investment options, or receive personalized financial education. Here are the top 5 technologies impacting CX in BFSI in the near future:

  • AI-powered Personalization: Artificial intelligence will become even more sophisticated, analyzing vast amounts of customer data to predict needs, recommend products, and personalize communication. Imagine an AI chatbot that understands your financial situation and suggests saving goals or investment options tailored to your risk tolerance.
  • Frictionless Interactions: Biometrics and voice recognition will streamline authentication processes, allowing for secure and convenient access to financial services. Imagine logging into your bank app with a simple voice command or using facial recognition for secure transactions.
  • Augmented reality (AR) and virtual reality (VR): AR and VR hold immense potential for enhancing financial literacy and simplifying complex processes. Imagine receiving mortgage advice while virtually touring a property or using AR to visualize your future financial health based on different savings models.
  • Hyper Automation: Repetitive tasks like loan approvals and account management will be automated using robotic process automation (RPA) freeing up human resources to focus on more complex customer needs and personalized advice.
  • Embedded Finance: Financial services will be seamlessly integrated into our daily lives. Imagine automatically saving a portion of your paycheck into a designated goal account every time you make a purchase or receiving insurance quotes embedded within your travel booking platform.

The Future of BFSI - Top 10 Use Cases for CX in BFSI

The BFSI industry is on the cusp of a major transformation driven by CX. We can expect to see a significant shift towards hyper-personalized experiences that leverage cutting-edge technologies like Artificial Intelligence (AI) and automation. Here are 10 key use cases for CX that will shape the BFSI landscape in the coming years:

  • #UseCase1- Hyper-personalization: Leveraging AI and ML to create personalized financial products, recommendations, and marketing campaigns tailored to each customer's unique needs and preferences.
  • #UseCase2 - Conversational AI Utilizing chatbots and virtual assistants powered by natural language processing (NLP) to deliver 24/7 customer support, answer questions, and resolve issues efficiently.
  • #UseCase3 - Proactive Customer Engagement: Employing AI and data analytics to anticipate customer needs and proactively offer solutions or recommendations before issues arise.
  • #UseCase4 - Biometric Authentication: Implementing secure and convenient biometric authentication methods like fingerprint or facial recognition for secure and streamlined access to accounts.
  • #UseCase5 - Augmented Reality (AR) and Virtual Reality (VR): Utilizing AR/VR technologies to enhance customer education and product demonstrations, allowing for remote walkthroughs of financial products or services.
  • #UseCase6 - Emotional AI: Integrating emotional intelligence into customer interactions to understand customer sentiment, identify frustration points, and personalize interactions accordingly.
  • #UseCase7 - Blockchain Technology: Leveraging blockchain for secure and transparent transactions, streamlining processes like loan approvals, claims settlements, and identity verification.
  • #UseCase8 - Ethical AI and Data Governance: Ensuring responsible use of AI and customer data, with clear guidelines around transparency, security, and customer privacy.
  • #UseCase9 - Focus on Financial Wellness: Shifting from pure product sales to a more holistic approach that prioritizes financial wellness by providing budgeting tools, financial literacy resources, and personalized financial planning advice.
  • #UseCase10 - Omnichannel Experience: Providing a seamless customer journey across all touchpoints, including mobile apps, online banking platforms, physical branches, and social media.

SoftClouds & BFSI CX Implementations

#ClientImplementation1 – Knowledge - Our client is a prominent health insurance organization in America, dedicated to providing high-quality, accessible, understandable, and affordable experiences, outcomes, and solutions to over 7+ million customers.

In a strategic alliance with our client, we delivered robust support for their Oracle Knowledge Management system. Our comprehensive suite of services, including 24x7 server management, rapid issue resolution, and seamless reporting and data migration, fortified their operational backbone. By guaranteeing uninterrupted operations and streamlining data management, we empowered our client to surge ahead with unwavering confidence in the ever-evolving healthcare landscape.

Results & Advantages:

  • Reduced cost
  • Streamlined data retrieval
  • Enhanced team efficiency & insights
  • Improved return on investment (ROI)
  • Accurate search results
  • Personalized & on demand reporting
  • Better decision making
  • Structured for optimal efficiency
  • Efficient UI/ UX

#ClientImplementation2 – Sales, Service & Social Cloud – Our client is a well-known financial cooperative that helps members save time and money, while also earning money. With more than 60 branches, they serve members and the community. Originally focused on providing financial services to military service members and their families, they now serve over 1 million members across Texas and worldwide.

We automated and linked business objects with workflows and established a territory management process. Products were associated with price lists and customer data was deduplicated via Customer Data Management. Had set up role-based visibility and an organization-wide reporting structure. Additionally, we deployed CX cloud mobile and enabled Oracle Social Cloud for internal chat and sales activities. Created dynamic dashboards and reports and integrated them with Outlook.

Results & Advantages:

  • Faster & easier to track daily activities; total control over products & sales teams to maximize sales
  • Unique customer data with multiple associated addresses provides data control visibility
  • Mobility helps manage sales activities, view & edit Oracle CX Sales & B2B data without network connection, auto-sync when connection is established
  • Oracle Social Cloud enables internal & external users to share new ideas
  • Sync calendar with OEC & integrate map profiles with contacts/leads & activities

#ClientImplementation3 – Knowledge, Service Cloud - The client was a not-for-profit financial cooperative based in Sandy, Utah, serving members across the United States. With a strong commitment to its community, our client offers a range of financial products and services, including savings accounts, loans, credit cards, and investment options. The company prioritizes customer satisfaction and financial education, striving to provide personalized and reliable service to its members.

The implementation of a scalable knowledge management system provided easy access to comprehensive documentation for users. Existing content was successfully migrated to OKA, streamlining knowledge resources. Personalized branding for the MACU UI/UX enhanced user engagement and consistency. Notifications were enabled for user feedback on knowledge articles, allowing for continuous improvement. Customized reports and interactive dashboards offered valuable insights for decision-making. SLAs were established for incident management to ensure prompt resolution and user satisfaction.

Results & Advantages:

  • Managed customer service effectively with personalized customer portal
  • Designed accurate & efficient search mechanism
  • Deployed end-to-end solution for customer service
  • Content management embedded in customer portal for ability to search content
  • Ability to see search results in SharePoint based on search string
  • Ability to export analytics & reporting data from OSvC to external systems

#ClientImplementation4 – Siebel – Our client is an American multinational payment card services corporation and a trusted leader in digital payments headquartered in San Francisco, California. Founded in 1958, the organization is considered as one of the world's most valuable companies.

By leveraging expertise in Siebel Open UI, we resolved various UI rendering issues using JavaScript, CSS, HTML, and custom plugins. Addressed functionality-related issues across multiple layers of the application by making changes in Siebel configuration, e-script, application level, and workflow level. These efforts ensured a seamless and efficient user experience while optimizing the system's overall performance and reliability.

Results & Advantages:

  • Fixed Siebel rendering modern browsers issue
  • Fixed complex functionality issues like Gantt chart dispatch board, auto commit & other issues
  • Fixed email related issues that helps the users to send email from Siebel using short keys to the customers

#ClientImplementation5 – Sales & Service Cloud – The client was a leading provider of innovative technology solutions that cater to a diverse range of industries. Known for its exceptional customer service and cutting-edge products, the company consistently delivers high-quality services to clients worldwide. With a focus on continuous improvement and sustainability, the organization is dedicated to driving progress and success for its clients and partners.

SoftClouds effectively configured sales campaigns by incorporating attachments to enhance the engagement and impact of marketing efforts. We have built personalized marketing templates that resonate with the target audience, boosting conversion rates. By automating lead scoring and ranking, I streamlined the sales process, allowing teams to focus on high-priority leads. Enabled multiple addresses for contacts and accounts, ensuring greater flexibility and accuracy in managing client information. Account prioritization and enrichment strategies were implemented to optimize business opportunities and client relationships. Integrated the system with Oracle Social Network and Microsoft Outlook, facilitating seamless communication and data sharing across platforms.

Results & Advantages:

  • Incredible campaign process with an ability to associate multiple contacts, groups & segments
  • Automated scoring retrieves qualified leads
  • Modernized business process saves time & money
  • Hierarchy-based data visibility ensuring data reliability

The Future of BFSI with Tech

The future of the BFSI industry is undeniably intertwined with technological advancements. As we hurtle towards the future, we can expect a landscape characterized by hyper-personalization and seamless, data-driven experiences. AI and ML will be at the forefront, enabling institutions to tailor financial products, recommendations, and marketing strategies to each customer's unique needs and preferences. Imagine receiving real-time investment advice based on your financial goals or having a virtual assistant proactively suggest a budget plan that aligns with your spending habits.

This tech-driven transformation will extend beyond product offerings. We'll see a rise in omnichannel experiences, ensuring a smooth customer journey across all touchpoints, whether it's a mobile app, online banking platform, physical branch, or even social media interaction. Biometric authentication will become commonplace, offering a secure and convenient way to access accounts. Additionally, technologies like AR and VR hold immense potential for enhancing customer education and product demonstrations. Imagine a virtual walkthrough of a complex financial product or service, all from the comfort of your home.

However, navigating this tech-driven future comes with its own set of challenges. Ethical considerations around AI and data governance will be paramount. Financial institutions will need to ensure responsible use of customer data, with clear guidelines around transparency, security, and privacy. Striking a balance between technological innovation and human connection will also be crucial. While AI-powered chatbots can offer 24/7 support, there will always be a need for human interaction, especially when dealing with complex issues or building trust. The future of BFSI lies in harnessing technology to empower both customers and institutions, fostering a future of financial well-being and personalized service.

Balaji Ramachandran, Founder and CEO of SoftClouds, wrote this article. He has over two decades of experience in technology, business development, and operations. Balaji has a solid foundation in customer relationship management for SMBs and enterprises. Utilizing his profound expertise, he has spoken at many conferences about CRM/CX and technology worldwide.

SoftClouds is a CRM, CX, and IT solutions provider based in San Diego, California. As technology trends are proliferating, organizations need to re-focus and align with the new waves to keep pace with the changing trends and technology. The professionals at SoftClouds are here to help you capture these changes through innovation and reach new heights.