In the world of Banking and Finance, Customer Centricity plays a vital role in transforming a corporate bank into a customer-driven organization.
Over the years, Banking sectors have followed the thumb rule of making their immediate account holders happy. This practice is now recognized as “Customer Centricity”.
In practice, “customer centricity” revolves around taking collective actions to improve service offerings based on customer feedback and behavior. The old adage – “Customer is King”, seems to be the motto of banking firms, especially in the 21st century. The DNA system of the firm is aligned to the core requirements of customers.
To achieve customer centricity, one needs to apply good listening skills and take customer feedback positively in order to improve their business strategies.
Why Customer Centricity is important?
BFSI Industry is fragmented into local and regional branches and face constant competition from multinational units. Some of the payment options like PayPal, We Pay and Google Wallet also impose pressure on their day to day service offerings.
After the worldwide recession in 2008, which shook big conglomerates and changed the way banking operations were undertaken, downsizing mortgage demands and customer behavior that concentrated on a more ‘secured’ approach by choosing multinational banks instead of local ones; the scenario was that customers were greeted informally.
Customers are now aware of different banking options that can help them lead a tension-free life for themselves. A multinational credit card holder opts to keep savings and checking accounts separately for the sake of convenience as well as security. Flexible interest rates have made the customer apply for a home loan with a regional bank or a well-known group of company offering easy loans in exchange of assets.
A customer centric approach helps all types of banks to address the underlying issues of customer grievances and find out a way to mitigate those issues in a tactful manner. The solution often transforms into a ‘winning strategy’ for the bank. Moreover, customers have changed their way of preference from drawing a cheque in a queue physically to transferring money online. People who carried two-three credit cards, now have opted for maximum two. Banking mobile applications have made their transactions convenient and hassle-free. They no longer want to depend on call centers to address their queries or visit their local branch due to a busy schedule.
In order to gain customer satisfaction, banks must concentrate on building 3 things:
Organization, People Power and Technology. Among the three, people power ascertains how their customers are going to be treated. For example, a banking officer who understands the importance of maintaining credit score and counsels for debt-recovery is a valuable employee for any banking institute. Impeccable HR Consulting P. Ltd offers BFSI Recruitment Service to all-sized banks who create value through their own human resources and are interested to adopt the “customer centric” approach for the long-term benefit of all involved.
