The retail banking sector has recently been rocked with scandal and investigations, causing market reverberations across the entire banking industry. The traditionally accepted norms surrounding product sales, incentive management and monetary-based metrics are now being challenged in the face of recent customer fraud cases. Despite the availability of technology and the amount of customer data in hand, the retail banking industry is struggling to pick up the pieces. Banking as a whole is now facing a major pivot point – reimagine the customer engagement experience to focus on value and transparency or risk regulatory repercussions.
Concepts surrounding cross-selling and incentive-based compensation tied to product sales have been wiped off the vernacular. In their place, a strategy based on understanding, customer needs, enforced consent and goals based metrics – all rooted in customer satisfaction – are beginning to fill the vacuum. What today’s banks need to recognize is that customer value and transparency go beyond how banks advise their customers. These foundational customer-based metrics also need to be woven into how banks attract, acquire, and onboard new accounts as well. There’s a reason why banks are turning to CRM solutions to shift their monetary metrics to a primary focus on customer value and satisfaction throughout the customer lifecycle.