6 Banking customer experience strategies for 2024

The customer experience is a critical part of every business, as it builds customer loyalty and improves the overall brand image and equity. When looking at the retail bank customer experience, there are multiple considerations to keep in mind in 2024.

Because many banks are cutting back on branch presence, according to data from Statista, this can create a major problem for customers who may need to drive much farther to reach a convenient branch location. As a result, it is more important than ever for financial institutions to deliver a good banking experience.

Here are six strategies to follow for 2024.

Gather customer feedback

Before beginning any efforts to improve the banking experience, banks should gain a firm idea of how customers are using their branches and what they expect from it.

For example, banks should know:

• How often customers visit the bank.
• What tasks customers commonly perform when visiting the branch or retail location.
• Learn what individual demographics want from a banking experience.
• Discover the most common complaints customers have about the retail banking experience.
• Improve customer experience with a financial guidance focus at the retail bank branch.

To gather this information, banks should conduct surveys and studies on their customers. They should then take a look at how the branch itself is conforming to customer expectations and what needs to be transformed.

Transform your retail bank customer experience with financial guidance

Customers are increasingly going digital for basic banking transactions such as transferring or checking balances, but that doesn't mean they are forgoing branches entirely.

A survey by TD Bank, revealed that 84% of respondents had visited a branch at least once in the past year and 40% said a branch is their first point of contact when they have an issue or question.

Steve Turley, head of consumer distribution, strategy, planning and innovation at TD Bank said, "Three out of five respondents noted that they prefer to visit branches when making important financial decisions, such as taking out a mortgage, opening a new account or choosing a new credit card."

Although customers come to branches to get financial advice and guidance, traditional branch designs may impact this, since customers are not comfortable asking for advice in long teller lines where others can hear them.

Bank of America fixed this bank branch experience issue by converting teller windows into offices and adding iPads for quicker transactions.

"We have iPads where we can have conversations for quick transactions. They can go in and out or set up an appointment," Amber LeGrett, SVP of business strategies and initiatives at Bank of America, said during a session at the Bank Customer Experience Summit.

Other tactics include creating more inviting environments such as providing refreshments and more relaxed designs (i.e. removing the intimidating teller windows and providing coffee for visitors).

Train universal bankers

In order to meet customer expectations for a financial guidance-focused retail bank customer experience, financial institutions need to have employees that can offer that advice.

LeGrett said that Bank of America trains their bankers to act as "relationship managers," that, "show people how to do things in the lobby and transition conversation to other banking topics, like purchasing a car."

According to ZipRecruiter, a job searching website, "while both Teller and Universal Banker roles involve customer interactions in a banking setting, Universal Bankers have a more extensive range of responsibilities and are trained to provide a wider array of banking services beyond basic transactions. They are often seen as a more comprehensive and flexible resource for customers seeking various financial services and solutions."

For example, universal bankers will be more likely to cross-sell to customers and answer questions related to loans, mortgages, account types and more. In other words, these employees deliver a traditional retail customer experience in a bank environment.

The role of self-service in retail bank customer experience

With modern businesses, it's not just about creating a physical or digital space, brick and mortar spaces need to act as a "phygital" space that integrates both elements. Self-service technology is a key component in this area.

Banks have traditionally used ATMs to provide cash dispensing after hours, but these devices may not deliver the right customer experience by themselves.

"I believe we are living through the death of the single function," Leland Englebardt, president, E-Squared System Inc. said in a phone interview. "It used that an ATM that just dispensed cash was an ok business proposition, but now ATMs have to be multifunctional utility for managing your financial life."

There are several features that banks can add to their ATMs that will improve the customer experience such as:

• Cash/check deposit.
• Video banking.
• Contactless login.
• Mobile integration.

Teller Assist Units are another area that is expanding rapidly, according to data from RBR Data Services, as there are now 40,000 of these devices installed in 20 markets, with two thirds in the USA. More than 60% of these devices are video enabled to allow the bank to deliver banking services to customers after hours, expanding the reach of the branch.

The role of digital signage in the retail bank customer experience

Digital signage can also play a role in boosting the retail bank customer experience, especially for Gen Z audiences.

"Digital signage plays a crucial role in branch marketing, offering increased control and flexibility to display content that resonates with Gen Z customers. It enables branches to showcase their values and key messages to suit different demographics at any given time – allowing marketing teams to stay relevant and timely," Sam Vise, CEO of Optimum Retailing, said in an email interview.

He brought up that digital signage can deliver personalized content for customers. However, many banks do not focus on content that reveals their brand identity, but instead 75% focus on banking-related content.

"To engage more effectively, particularly with Gen Z customers, banks should focus on showcasing their unique brand voice and value-driven purpose through their digital signage. This approach not only differentiates them from competitors but also resonates with Gen Z's preference for brands with clear values and identities," Vise said. "Finally, personalizing the content based on local demographics is crucial. By collecting and analyzing data specific to each region, banks can tailor their digital signage to better suit local preferences and needs. This localized approach acknowledges that effective communication is not a one-size-fits-all strategy, enabling banks to connect more meaningfully with their diverse customer base."

An example of a bank that did this well is Valley Bank which used direct view LED displays to represent its brand to the public, in particular its presence as a member of the community.

Expand the bank's footprint

Lastly, banks should examine methods to expand their retail reach outside of traditional branches both through smaller footprints and more advanced ATMs off-branch.

For example, banks and credit unions are beginning to explore mini branches that feature more technology as a way to meet a community's needs while saving money.

Alliance Catholic Credit Union for example deployed ITMs at small locations that have a smaller staff, allowing it to deliver more banking services within a smaller footprint.

On the ATM side, banks can deploy more of the devices or leave them active at branches that have been shut down, essentially turning it into an ATM only location, so that customers can still have a good retail bank customer experience even if their branch has been shut down.

Banks can also improve the overall banking experience by offering customers reimbursement options for using non-bank ATMs as a way to reduce the impact of fees on their wallets.

Conclusion

For any of these strategies to be successful, financial institutions must maintain a close relationship with their clients. Don't let the survey be the only communication with customers regarding the retail banking experience.

Speaking about the Alliance Catholic Credit Union ITM implementation, Adam Tonge, VP of retail services said, "It is very important for the credit union to engage with membership when implementation happens."

Tonge also recommended that FIs take time to do their research and have conversations with peers that have already upgraded to ITMs.

However, this advice applies to any effort to transform the retail bank customer experience. Take a close look at what other banks are doing and identify potential strengths and areas for improvement.

The bank branch is here to stay, and banks must continually innovate to keep customers satisfied.