Does your online banking site provide the same exceptional experience that is delivered in your branches and over the phone?
Superior service has been the long-time competitive advantage credit unions and local banks have used to attract customers from the mega banks. And it worked. Especially during the 2008 banking crisis and subsequent “War on Wall Street” when customers were defecting from mega banks at a high rate.
Now your customers want the Mega Bank experience… online.
The playing field has since changed since 2008 and the difference in customer satisfaction isn’t as large as some may think. The 2015 JD Power Survey on Banking Satisfaction showed that mega banks have raised their customer satisfaction scores dramatically. In fact, the customer satisfaction score gap between local banks and mega banks has been cut in half! When you dig into the numbers, you see that much of the increase in the mega banks’ performance comes from providing a superior online banking experience for their customers.
Over 60% of customer interactions occur… online.
How much of a difference does online banking make? JLL Research published findings that showed well over 60% of banking transactions occur in digital channels. “It is past time for credit unions and local banks to put focus on the digital customer experience,” said Stephen Bohanon, Founder and Chief Strategy & Sales Officer for Alkami Technology. “Already a majority of customer touches are happening online, and we recently read McKinsey research predicting that 95% of all banking transactions will take place in a digital channel by 2020.”
So, how do credit unions and local banks compete with the mega banks that seem to have unlimited resources to build digital platforms? Bohanon believes there are three simple ways credit unions and local banks can provide a markedly better digital experience and regain their customer satisfaction prowess.
- Model the Best
Which retail websites get the highest user ratings for ease of use and design? Banking sites are rarely, if ever, among the award winners. It’s names like Amazon, iTunes, and Sony that are consistently recognized for their superior ecommerce experiences. “Credit union and bank customers use ecommerce sites frequently, and it’s great online retail experiences that set their expectations,” Bohanon commented. “By taking a cue from top retailers, local banks and credit unions can provide a better experience than the mega banks do.”
- Make It Simple
“Go with what made you successful in the past,” advises Bohanon. “Credit unions and local banks always seek to make transactions as easy as possible. In the online space this means keeping the look and feel the same for every product and in every platform.” Whether the user is checking a credit card balance from a mobile phone or transferring money into a savings account from a home PC, the screens and transaction tools should have the same appearance and functionality throughout.
- Know the “Why”
Why do members and customers use online banking? In a word, convenience. They want to take care of transactions quickly and easily. A simple look at page view data shows that most of those transactions involve balance inquiries, money transfers and payments. “Site construction should begin with making those everyday transactions as smooth as possible,” says Bohannon. “Intuitive tools such as Touch ID and pre-populated account applications are examples of functionality that can make a user’s life easier.”
Great online experiences lead to growth.
Using these foundational ideas is a strong starting point when embarking on an online banking project. “We see this approach work for our clients,” says Bohanon. “On average, we see their online user populations consistently grow by 5% month over month. That’s more than double the average acquisition rate for local banks and credit unions; which is about 2%.”
To see a free demonstration of how these ideas can easily be incorporated into an online banking platform, contact Alkami Technology by clicking HERE.
About Alkami Technology
Alkami Technology, Inc. provides online and mobile banking solutions for credit unions and banks. Based in Plano, Texas, the company’s flagship product, the ORB Platform, delivers unparalleled security, flexibility, extensibility and a superior architecture for the future of digital banking. With its modern interface, intelligent content delivery system and customizable feature set, the ORB Platform is the ultimate digital banking solution for financial institutions. Alkami provides the ORB Platform as a SaaS solution. For more information about Alkami, please visit www.alkamitech.com, or follow them on LinkedIn or on Twitter at @alkamitech