The Importance of Digital Customer Service in Banking to Businesses

As customers become more tech-savvy and demanding, their higher expectations extend to when they go to work and represent their businesses. This has become especially true in recent years, as the pandemic created more pressure for banking transactions to be completed digitally. A seamless experience and convenience in banking is key to businesses of all sizes. And it starts right from the beginning. 42% of U.S. based businesses view onboarding experiences at fintech companies to be more efficient than those at their banks. 

Businesses are an ever-growing opportunity. A decade ago, 2 million businesses were formed per year. Before the pandemic, it was 3 million. Now, by the end of 2022, 5.4 million new businesses are expected to be formed. Neobanks and challenger banks are of course capitalizing on this market, making it vital for traditional financial institutions to compete with their digital capabilities. And these capabilities are significant. Small firms are avid users of digital channels. For instance, almost half (46%) of surveyed small business stakeholders use their mobile banking app daily. For surveyed larger firms, online self-service was the most important factor that business clients cited when weighing a bank's digital offering. 

Alacriti’s partner, Glia, offers digital-first experiences, including Alacriti’s payment technology, for financial institutions to connect to their customers or members. We sat down with Jenn Markus, Director of Technology Partners at Glia to discuss how important digital customer service is in banking to businesses. 

1. According to Aite-Novarica Group, 5-10% of new online treasury product applications never get completed due to poor onboarding capabilities and experiences. With online customer service like co-browsing, imagine not missing any business because you can help continue to deliver the online experience, even when assistance is required. What other ways would you say financial institutions should leverage online customer service to increase revenue?

There are a number of different ways that online services can grow revenue: a recent Harris Poll showed that 40% of banking customers are willing to leave their primary financial services provider for one that provides a better digital experience. By providing them with that better digital experience, FIs can avoid losing customers through attrition and improve customer retention. Just a 5% increase in customer retention can improve profits by anywhere from 25-95%, according to Bain & Company. Making sure existing users don’t have any reasons to leave goes a long way in securing profits.

Additionally, digital tools can allow Customer Service Reps (CSRs) a greater insight into the needs of website users. With Glia’s Live Observation tool, a CSR could watch a user’s journey through the website, including seeing them struggle with a form, and proactively reaching out to them and offering assistance. 45% of consumers say they’re likely to go elsewhere if a business doesn’t provide a personalized experience, so the ability for CSRs to reach out proactively at the first moment of struggle can make all the difference for customer loyalty. 

2.  What are the benefits of online customer service for business banking? 

Online service really wins a lot of people over with its convenience: almost everyone (over 90% of the US according to Statista) can reach the internet with 24/7 access, and with features like AI-powered chatbots, you can truly use banking services digitally 24/7. They can do all their important banking whenever they want, wherever they need to, without all the hassle of visiting a physical branch. Being able to get in touch with you on their terms, when it's most convenient for them, is a valuable selling point.

Digital Customer Service will also benefit businesses by providing the FI with more insights into their business customers’ finances. FIs can take advantage of a wealth of data and digital tools to better provide for their business customers, helping individual accounts with unique plans for long-term financial success. 

3. In a survey of 358 small businesses, 45% said they banked with Paypal, 55% said they could consider doing so; and 30% said they currently work with Square, and 43% said they would consider doing so. In your experience, how important is the digital customer experience in banking important to businesses? 

Digital Customer Service has become an increasingly crucial platform for maintaining loyalty. Users become frustrated with the digital experience when it doesn’t meet the needs of their business and can quickly erode their trust. They often expect the same kind of service experience they receive from tech giants or major retailers, and if you don’t deliver it then they may want to seek out someone else who can. It’s easier than ever in the digital age to switch FIs, so maintaining business’ loyalty with great digital experiences is paramount. If you can avoid giving someone any reason at all to leave, you should. 

4. Of businesses surveyed, 52% of surveyed businesses state a seamless experience across the bank is required for or very important to keeping their business; an additional 36% state it is important." Is it safe to assume the same about businesses? What do you think businesses expect when it comes to online customer service from their institution?

It’s usually safe to assume that the same kinds of things that can cause friction for consumers will also negatively impact businesses. Most people may, in fact, have a higher standard for the banks they trust with their business than the ones they use for their personal finances. Financial institutions should definitely make sure they’re meeting their business clients’ needs as well as their personal account holders. 

Businesses will want to be able to easily monitor their accounts and finances from anywhere, ensuring they have ready access to them and can easily make changes in the event of an emergency. Businesses also want to be able to perform actions like paying bills and transferring money quickly, so they should be easy to find on your site and intuitive to carry out. They expect to be able to quickly get in touch with a specialized business CSR should they ever have any issues: over the phone, online, or however else they like to get in touch. They also will expect support staff to be knowledgeable and trustworthy, so they can feel comfortable trusting them with their business’ finances. At the end of the day, we are serving the people within the business, so providing a seamless, personalized experience makes a difference.

5. Considering nearly 3 out of 4 consumers are willing to go to a competitor, driven by the digital disconnect, what is the best strategy to personalize the digital customer service experience?

At Glia, we often talk about meeting account holders where they are and in their moment of need. By offering multiple avenues to connect online and via phone, you can provide a personalized experience, remove the digital disconnect, and streamline the experience. Whether utilizing online chat, SMS, video, voice, or phone, giving people a lot of different options for how they want to get in contact with you makes sure that you’re meeting them where they already are, which creates a personalized journey. 

It’s also important to ensure that these channels are interconnected, and can communicate with one another: nothing makes someone feel more ignored in a customer service interaction than when they have to repeat what they’ve already said! Make sure that your channels can communicate between one another, passing along context when transitioning the users to ensure that nobody needs to explain themselves all over again. It not only makes service feel more personal, but reduces frustration and makes them much more likely to want to keep coming back.

Alacriti and Glia have partnered to assist financial institutions in providing their members with best in class digital-first service. Glia’s Digital Member Service Platform combines all communications into one unified digital experience. With the partnership, members have access to Ella, Alacriti’s AI chatbot that’s fine tuned to answer bill pay questions and is fully integrated within Glia’s Digital Member Service platform. For more information about Digital Member Service powered by Alacriti and Glia, please please call us at (908) 791-2916 or email info@alacriti.com.