Finance is generally known as a very traditional industry, but recent digital trends in technology and customer expectations have made it necessary for organizations to become technologically advanced. They can no longer rely on the same old experiences to please and retain customers. Most companies in this space are constantly upping their game and trying to stay ahead of the curve. This means that to truly stay competitive, financial institutions must consistently innovate their digital customer experience (DCX).
According to the 2023 BAI Banking Outlook, which surveyed financial services leaders, 44% of respondents said the DCX they deliver is merely average. Institutions need a method to create digital experiences in a way that gives them agility and flexibility — as well as the enhanced security they must provide to protect customers’ sensitive data. Here are the most common challenges financial companies face in this journey toward better DCX and how they can address them.
Balancing Changing Customer Expectations With Strong Data Security
From Instagram feeds to Netflix recommendations, customers are used to many of their digital experiences being expertly customized. Their finances should be no different. Only 44% of banking consumers feel their banks are delivering personalized support, according to J.D. Power’s 2022 U.S. Retail Banking Satisfaction Study. This percentage is especially concerning given that 78% of respondents said they expect personalized support from their bank.
Financial institutions face a unique dilemma in that customers’ personal financial information is extremely sensitive. At the same time, they must be able to collect illuminating insights from customer data to create worthwhile digital experiences. Comprehensive customer data allows institutions to extract insights such as predicted customer behavior and risk assessment, but companies cannot let data security fall to the wayside as they pursue stronger personalization.
One valuable solution to balance both personalization and security is a composable content management system. This solution enables faster implementation of security updates, which helps your organization lessen the possibility of cyberattacks. Traditional digital experience platforms are generally slow to update security protocols, giving cyber criminals more time to take advantage of gaps in security. In an industry that is especially vulnerable to security threats, a composable solution with quick updates and easy content management will help you maintain security.
Maintaining Consistency Across Channels
What further complicates CX even more is that customers increasingly use multiple channels to interact with their financial accounts and ask for support. Their options include websites, apps, phone calls and visits to their institutuion’s physical branch. There may even be multiple bank locations to choose from. These channels must all have access to the same customer data so that customers have consistent experiences across channels. Without a way to streamline experiences and customer data, financial institutions cannot guarantee the personalized, reliable CX that people expect. This is especially important as more customers choose their preferred digital channel over a physical location or a call center.
One of the biggest obstacles in providing customers with the experience they expect is the internal silos that prevent integrated views of their journeys. A composable digital experience platform (DXP) — a versatile digital platform that lets organizations easily customize different digital tools to create unique and engaging online experiences for users — is ideal for organizations looking to overcome this roadblock and streamline content across channels. It allows digital teams to manage all their content in one central hub and maintain consistency across channels.
Moving Past Outdated Strategies
When people think of a bank, they often think of long lines and time-consuming interactions at a service counter. While some customers may continue to use this method to manage their finances, most others have migrated to digital channels that are more conducive to their fast-paced, digital lifestyles. Having a strong digital presence isn’t just a powerful differentiator anymore — it’s a necessity. Eventually, people will leave their more traditional institutions that continue to provide slow, outdated services in favor of more digital-friendly options.
One noteworthy advancement of recent years is the digital-only bank, which offers fast, convenient banking solutions. More traditional banks may struggle to keep up with the improved customer experience these digital-only banks provide. This is one prime example of an advanced solution that could not function efficiently without the help of a composable DXP, which gives these digital-only banks the ability to wow customers with personalization, innovate quickly and ensure that data security is always a priority.
Adopting a Composable DXP
A composable DXP is a must for financial institutions trying to thrive in an increasingly digital world. It’s also the foundation of a headless content management system (CMS) like ContentStack. Contentstack’s composable capabilities give organizations the ability to manage content consistently across channels and personalize content based on customer data. In this way, it helps organizations like yours that are constantly competing to attract and retain customers. Large investment firms, small businesses and every financial institution in between can benefit from these tools and achieve three key benefits — agility, flexibility and enhanced security.
Learn more at contentstack.com.
