BANKING CUSTOMER TRENDS: LESSONS AND WAY FORWARD FOR ISLAMIC BANKS

Ernst and Young released third global consumer banking survey 2014 titled "Winning Through Customer Experience". This report reveals important insights for banks that are determined to meet and exceed customer's expectations and a warning to those that have for years bullied their customer or took them for granted.

This article provides some key lessons learned from the report for Islamic Banks to capitalise in order to satisfy and exceed customer expectation as well as stay on top of competition.

Lesson One: Winning customer trust is a key to success. Trust is the perception from the heart and mind about you based on the way you look (brand), behave ( communication and customer service)and what you know ( expertise and quality of advise). The survey reveals top reasons to win complete trust from the customers which banks should strive towards them or maintain them to succeed. 1. Bank financial stability, 2. The way customer is treated, 3. Quality of advice, 4. Communications and 5. Complaint handling.

Lesson Two: Enrich wonderful customer experience, be transparent and customise products with customer's needs. The survey has shown that top reasons for customer to open or close account depend on them. Customer wants transparency of fees and how to avoid them, simplicity of offers and clear communications.

Lesson Three: More and better advice in order to help customers make right financial decisions in complex environment. The survey reveals that customer's are ready to increase balances and accounts in exchange for banks helping them develop:
1. Financial plans and goals.
2. Provide advice that is customer centric based on holistic perspective of the customer unique situation and needs.

Lesson Four: To stay competitive, banks need to continue building channel capabilities to provide 24/7 real time banking, seamlessly accross channels.

Lesson Five: Important to increase customer advocacy and expand bank-customer relationship.

Lesson Six: Work with customer when problem arise and become their advocate.

WHAT NEEDS TO BE DONE?

No easy answer. However, the following measures if exists or taken shall position the bank on the right track:

1. Monitor customer service delivery, standards and customer satisfaction by not only conducting customer satisfaction surveys but having in place customer service champions in branches and every customer contact centers to train and monitor customer service delivery and standards.

2. Place schedule of fees in branches, website and be prepared to explain and defend them emotionally but reasonably. Bank employees must know the bank tarrif and know the 'why' and 'how' it is charged and ways for customer to avoid it.

3. Complaint handling policy and procedures should be in place and informative. Every person in the bank should be prepared to handle complaint professionally and reach resolution that guarantee customer satisfaction.

4. Institute customer advocacy strategy that is mutually beneficial between the bank and the customer.

5. Expand communications channels to include social media channels and service delivery channels such as agency banking, internet and mobile banking.

6. Develop banking products that take into account individual life cycle, customer risk appetite and customer pocket size. Furthermore, banks should not wait for customer insights but go for them through institutionalized customer feedback mechanism and various market research tools.

All the best.