An uncertain economy—highlighted by high inflation and increased cost of lending— will force banks to pivot to build momentum and provide high-quality customer experiences in 2023. The future is about understanding customers, building experiences both digital and interpersonal, and evolving multi-channel strategies to meet customer needs and effectively ride out an uncertain economy.
Because customers increasingly desire greater technology and sustained personal relationships, 2023 will be a year of multi-channel, integrated banking finding its momentum to best meet customers where they are. Data, automation, and customer segmentation will position companies to evolve along with client and industry needs.
Banks can’t expect to benefit from market uncertainty by deploying a purely defensive approach— such a stance could leave them at risk of falling behind their peers and even non traditional competitors.
The macroenvironment will put pressure on them to grow, and they will need to have firm customer segmentation, optimized to highlight where areas with most revenue and cross promotion can occur. Having a deep understanding of who each client is and what their potential revenue is will help teams prioritize and adjust the customer experience in a way that facilitates long-term relationship building and growth.
Coupled with the generational wealth transfer already underway, the ability to segment and identify your most valuable customers will be essential for any bank seeking to outperform competitors and serve both their clients and stakeholders.
Leverage customer data
There’s an increasing need and sense of urgency for organizations to have a clear approach to finding and sharing data. Having this central point of data enables simpler access to analyze, identify, and prioritize relationships and initiatives more effectively—in turn driving growth amid a turbulent economy.
Enhance technology to offer a good digital experience
Technology is no longer perceived as just a cost center—it’s a fundamental element of a financial institution’s strategy. Digitally focused banks are more resilient, have lower costs, provide a better client experience, and are well-positioned to retain their current customers and experience growth. While banks might be meeting basic digital needs, customer expectations have already moved on from basic functionality to next-generation digital experiences.
Know your customers
Generational changes and shifting attitudes in the post-pandemic environment are retiring the one-size-fits-all approach for banks—the one institution that still has credibility and trust on their side. Identifying highly profitable client segments and tailoring strategies around them can allow a bank to differentiate itself and attract prospects like those identified as profitable, carving out new industry verticals and client segments in a different, momentum-building way.
Customers will expect their banks to be proactive in outreach during an unstable market; take advantage of that time to continue building relationships and learn what their other needs are, what changes they expect, and any concerns they may have. Now isn’t the time to sit back and see where the economy goes. Instead, dive into data, relationships, and digital, and see how you can best serve customer needs on both the commercial and retail fronts to retain deposits and build stickiness.