Global Banking & Finance Review: Head of Cognizant’s Banking and Financial Services Practice in the UK & Ireland Writes About Using Technology To Enhance Customer Service In Banking

The continuing technology advancements—and hence disruptions—present an opportunity for banks to continue to reinvent and rethink their business, where the customer continues to be the focal point of innovations, writes Tony Virdi. “Ultimately, banks need to ensure they retain the customer relationship,” he writes, “they will do so by providing trustworthy services with an optimal customer experience.”

However, he warns, there is a risk that banks could become a ‘commodity or utility’ in the mobile payments industry as the communications and technology industry evolves and lures customers away from the traditional bank to embrace new payments methods, leaving the bank stagnant in its role as a repository for retail savings. “Banks are well-placed to assist with financial transactions, but what is really at stake is the customer mind share,” he points out. “What additional value will they bring to the table is an important question.”

Virdi writes, “Banks can remain relevant to the customer by creating end-to-end services that add value and help keep them ahead of the competition. They should also, for example, embrace social channels to meet the needs of the millennial customer, whether promoting new products on the social networks or utilizing these channels to improve brand awareness, track product feedback and leverage new technology, such as analytics, to improve the prediction rates at contact centers. New technology can also be adopted to improve customer experience and streamline process lifecycle effectiveness as a result.”

According to Virdi, the key considerations banks need to have front of mind are: “whether to invest in building capabilities to support a strong mobile strategy, creating an interface between their legacy banking systems and mobile operations, and which partnerships to form.”

Disruption can be beneficial, he observes, but only if traditional players in the value chain are willing to adapt and change the way they do things. “If banks want to retain their customers, they need to remain relevant and offer services that foster loyalty, and this is where embracing disruption can come into its own,” he writes.

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