People want more than just basic financial services from banks — they want effective customer service experiences that build consumer confidence. In fact, 74% of consumers desire more personalized services from their banks, while lack of trust in banks was the second most cited reason for not having a bank account, behind not meeting balance requirements, according to the survey.
What’s more, in the same survey, about 50% of all households used nonbank online payment services such as PayPal, Venmo and Cash App in 2023, representing an increase from 46.4% in 2021. In a related finding, Accenture discovered that 59% of customers recently selected a financial product from a provider other than their primary bank.
These trends suggest a disconnect between traditional banking services and today’s customer needs. Banks must offer exceptional service if they are to earn customers’ trust. Banks can cultivate lasting relationships with their account holders by prioritizing clear communication and personalized attention.
Customers expect excellent service from banks
Customers want banks to provide the same seamless experiences they already get from digital-first businesses. Yet, traditional financial services models typically involve rigid hours, complex processes and a reactive approach to problem-solving. These pain points motivate customers to look for more modern, customer-centric alternatives.
According to a J.D. Power Survey, poor customer service was a leading factor among customers likely to switch their primary bank. Common difficulties include long wait times to get help, inconsistent experiences across different channels, and trouble resolving their problems efficiently. Customers are especially frustrated when they must repeat information during a service experience or when navigating complex authentication processes becomes burdensome.
Younger banking customers have even higher expectations. They seek 24/7 accessibility, instant issue resolution and personalized financial guidance. They want their banks to anticipate their needs and give proactive recommendations instead of waiting for problems to arise. Banks must begin focusing their customer service efforts on relationship-based engagement rather than transaction-focused interactions to remain competitive over the long run.
How banks can earn consumer confidence
Banks can improve the quality of service they offer and, in doing so, strengthen customer relationships. For starters, transparent communication is a must when building trust. This means clearly explaining financial products, fees, and processes while giving customers real-time updates on their requests or issues.
Personalized financial guidance is also key. Banks should responsibly use customer data to create tailored recommendations and educational resources, allowing customers to make informed decisions about their financial futures. According to J.D. Power, financial advice…
Read More: How banks can build consumer confidence with stellar customer service
