In the fast-evolving landscape of the Banking, Financial Services, and Insurance (BFSI) sector, the heartbeat of success resonates not just in transactions and policies but in the growing relevance of Customer Experience (CX). As financial institutions strive to distinguish themselves in a highly competitive sector, the significance of CX in BFSI customer support becomes the linchpin for sustained growth, customer loyalty, and market prominence.

Understanding the significant role CX plays in the success of financial institutions, we delve into the trends that are shaping BFSI customer support in 2023:

- Humanized Digital Experiences
In 2023, financial institutions are shifting their focus towards humanized digital experiences. Instead of merely selling products, the emphasis is on partnering with customers around their financial needs and goals. With 89% of consumers switching to a competitor after a poor customer experience, providing answers on the customer's terms is crucial. This necessitates a seamless omnichannel experience that is mobile-first and user-friendly.

    • - An impressive 85% of customers express a readiness to invest more for an enhanced customer experience, according to Adobe.

    • - In the decision-making process for purchases, 67% of consumers prioritize customer experience over price, as reported by Salesforce.

    • - Forrester reveals a substantial growth advantage for retail banks that consistently focus on optimizing customer experience, showing they grow over three times faster than those neglecting this aspect.

Customer Experience Trends

to Consider in 2023

- Omnichannel Support
The demand for an omnichannel experience is on the rise, with 76% of consumers expecting their banks to provide it. Whether through online banking, mobile apps, or virtual advice, customers anticipate flexibility and accessibility. The Zendesk Customer Experience Trends Report 2023 highlights that 62% of respondents believe experiences should seamlessly flow between physical and digital spaces. Integrating AI-driven chatbots is a significant component, with operational cost savings projected to reach $7.3 billion globally by 2023.

  • - According to Capgemini's 2021 World Retail Banking Report, more than 76% of consumers expect their banks to offer an omnichannel experience, while 59% anticipate on-demand customer service anytime, anywhere.

  • - Capgemini reports that among High Net Worth Individuals (HNWIs) under 40, 50% express a preference for exclusively virtual advice from their financial firms, in contrast to 39% of HNWIs overall.

  • - Deloitte's findings indicate that 84% of customers utilize online banking, and 72% rely on mobile apps for their primary banking needs. Remarkably, digital channels are more frequently used across all generations and countries than traditional branches and ATMs.

  • -Businesses adopting omnichannel strategies achieve a remarkable 91% greater year-over-year customer retention rate, as per a survey conducted by Aspect Software.

- Self-Service Options
Modern consumers, known for their self-sufficiency, are increasingly seeking self-service options from financial institutions. A Zendesk benchmark reveals a 5.4x growth in self-service adoption among financial services customers. The Global State of CX in Financial Services survey indicates that 75% of respondents prefer using self-service channels when dealing with their financial institutions. Functional and easy-to-use self-service portals are essential to meet customer expectations.

  • - According to Microsoft, a staggering 90% of customers worldwide expect brands or organizations to offer an online self-service customer support portal.

  • - Zendesk's benchmark data indicates a substantial 5.4x growth in the adoption of self-service among financial services customers. Their survey reveals that 75% of respondents find self-service a convenient means to address customer service issues, with 67% expressing a preference for it over speaking to a customer representative. Additionally, 91% of customers express a willingness to use a knowledge base if it is available or tailored to their needs. Interestingly, 40% of customers turn to a call center only after exploring self-service options for answers (Zendesk).

  • - Engageware's survey reports that 59% of banks and credit unions consider consumer self-service as highly important in their institutions, highlighting the industry's recognition of its significance (The State of Banking Self-Service 2019).

  • -A report from Aspect Software reveals that 73% of customers desire the capability to independently resolve product or service issues, showcasing a growing preference for self-service support. Intriguingly, the same report notes that a third of surveyed individuals would prefer cleaning a toilet over engaging with customer service representatives (Aspect Software).

  • - According to Capgemini's 2021 report, 71% of High Net Worth Individuals (HNWIs) in Asia-Pacific (excluding Japan), 63% in Europe, and 53% in North America express a preference for conducting transactions and accessing information independently rather than through an advisor. This underscores the trend of autonomy in financial dealings among this demographic.

- Contact Centers
Driven by heightened demand from banks and financial institutions to enhance customer experience, contact centers are at the forefront of CX evolution. The customer service sector, encompassing messaging, social media, and phone interactions, stands as the primary driver of BPO market growth, projected to achieve a robust CAGR of 7.5% from 2023 to 2031. Intense competition within the banking sector has prompted numerous companies to embrace BPO services for effective customer relationship management and retention, with a specific focus on delivering superior customer service and personalized experiences. Furthermore, the global BFSI contact center analytics market, valued at USD 260.2 million in 2020, foresees a 16.3% CAGR from 2021 to 2028. Financial services represented 26% of global call center usage in 2019, underscoring the pivotal role of contact centers.

  • -McKinsey's 2020 insights reveal a 65% preference for telephonic interactions in resolving banking-related issues. This preference propels banks to prioritize advanced contact center solutions, solidifying their role in the ongoing evolution of CX trends.

  • -As per Research and Markets' analysis report on the Global BFSI Contact Center Analytics Market, the market reached a valuation of USD 260.2 million in 2020. Forecasts predict an expansion at a compound annual growth rate (CAGR) of 16.3% from 2021 to 2028, projecting a market size of USD 842.5 million by 2028.

  • - According to a market analysis report by Grand View Research, Contact center analytics play a key role by delivering tangible benefits such as reduced operational costs and call volumes. When it comes to service, the integration and deployment segment, claiming an impressive 42.0% share of global revenue in 2020, takes center stage. Contact center analytics solutions have played a pivotal role in seamlessly integrating CRM applications, agent desktops, and CTI connectors in BFSI customer service, driving segment growth through customer engagement and agent performance. Furthermore, the managed services segment is expected to expand at the highest CAGR over a forecast period of 2021 - 2028 due to BFSI firms looking to streamline operations across applications, networks, and infrastructure.

  • -The American Customer Satisfaction Index highlights an average customer satisfaction rate of 79% for call centers within the banking and financial services industry. This figure reflects recognition and prioritization within US banking institutions for effective customer support. In the Indian banking industry, which has been on an increasingly upward trajectory due to strong economic growth, rising disposable incomes, increasing consumerism, and easier access to credit, banks are more and more incentivized to place similar recognition and prioritization for customer support.

- AI Integration
AI, particularly chatbots, plays a pivotal role in BFSI customer support. With 87.2% of consumers reporting a neutral or positive chatbot experience, the operational cost savings are projected to reach $7.3 billion globally by 2023. Chatbots in mobile banking apps are expected to dominate customer communications, handling 75-90% of queries by 2022. This not only saves time for customers but also results in substantial cost savings for banks.

  • - According to Drift, an overwhelming majority (87.2%) of consumers express a neutral or positive experience with chatbots, while only a minimal fraction (12.8%) report negative encounters.

  • - Juniper Research predicts a significant surge in operational cost savings through the use of chatbots in banking, reaching $7.3 billion globally by 2023, a substantial increase from the estimated $209 million in 2019. This translates to an impressive 862 million hours saved for banks in 2023, equivalent to nearly half a million working years.

  • - The potential of chatbots to reduce excessive operational costs in financial services is evident in Juniper Research's findings, showcasing a remarkable growth of almost 3,150% in successful banking chatbot interactions between 2019 and 2023.

  • - Juniper Research anticipates that the integration of chatbots into mobile banking apps will emerge as the dominant channel for chatbot-driven customer communications, accounting for 79% of successful interactions by 2023.

  • - The future role of chatbots is highlighted by Juniper Research, projecting that by 2022, these automated systems will handle 75-90% of healthcare and banking queries. This is expected to result in an average time savings of just over 4 minutes per inquiry and cost savings of up to $0.70 per interaction.

- Personalization
Customers now expect personalized experiences tailored to their specific needs. Leveraging data and analytics is essential for providing personalized recommendations and offers. With 72% of consumers rating personalization as "highly important," and 86% willing to share their data for a personalized banking experience, financial institutions need to embrace personalization to enhance customer satisfaction and loyalty.

  • - Epsilon reports that a significant 70% of consumers express a preference for conducting business with companies that provide personalized experiences.

  • - In the contemporary financial services landscape, personalization holds substantial importance, with 72% of consumers surveyed by Capco rating it as "highly important."

  • - The potential of chatbots to reduce excessive operational costs in financial services is evident in Juniper Research's findings, showcasing a remarkable growth of almost 3,150% in successful banking chatbot interactions between 2019 and 2023.

  • - McKinsey's report emphasizes that 71% of consumers expect personalized interactions, and three-quarters are willing to switch companies if their experience lacks personalization. TELUS International's survey further indicates that 43% of customers insist that interactions should become more personalized.

  • - Capco's findings reveal that 86% of customers are willing to share their data to personalize their banking experience. Additionally, 86% of individuals recognizing the importance of personalization express a willingness to provide feedback on their experience at least once a year.

  • - According to research by the Boston Consulting Group, effective personalization at scale has the potential to lead to annual revenue uplifts of 10%.

  • - Banks and credit unions prioritizing improved customer experience are generally 60% more profitable than their competitors less focused on delivering innovative customer experiences, as highlighted by BAI. However, a mere 9% of bankers define their customer experience in banking delivery as excellent.

CX Trends and Investments

Despite the recognized importance of CX, investment in customer experience initiatives remains in the bottom third of priorities for many financial institutions. A McKinsey report indicates that companies effectively managing CX can realize a 20% improvement in customer satisfaction and a 15% increase in sales conversion. However, only 37% of organizations have a formal CX plan, emphasizing the gap between acknowledgment of importance and actual investment.

In conclusion, the landscape of BFSI customer support is evolving rapidly, driven by the imperative to provide exceptional customer experiences. Institutions that successfully navigate these trends are not only enhancing customer satisfaction but also positioning themselves for sustained growth and competitiveness in the dynamic financial services sector.


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