We all know that consumers have increasingly demanded a smoother and faster-paced purchasing process for products and services across all industries. With our leaps in digital over the past decade, the “Now” economy not only expects this type of purchasing process, they demand it. In financial services, this certainly needs to become the standard as well.
In a recent article by The Financial Brand, Why Millennials Refuse To Open Bank Accounts Digitally, they’ve provided some very intriguing statistics on why financial brands need to make it a priority to map the customer journey with a specific focus on their digital properties. On average, more than 75% of e-commerce shoppers choose to leave a website before completing a purchase. That is a tremendous amount of people across all industries that are openly considering buying a product or service, but for a reason decided to leave your funnel. My advice, don’t encourage them with poor customer experience digitally.
When it comes to financial services customer journey, it is hard to ignore these facts. Millennials made up 49% of those who opened bank accounts last year. Credit cards were the most common type of new account opened on web or mobile — 61% of individuals who opened a new credit card did so digitally.
I recently wanted to open a savings account with my current financial institution that already handles my checking and personal line of credit. I went through all of the steps digitally only to arrive at the end where they required a phone call confirmation. I thought no sweat, except they required a phone confirmation from the number listed on my account. This number happened to be my parent’s landline phone that I most likely used when setting up my account in 2006. Guess what happened? I definitely never confirmed the account with that number because the only time I am at my parents is on weekends when I am visiting, and not interested in handling my personal banking needs.
This whole process stuck out to me, and I wondered, why can’t I open an additional savings account with the financial institution who already handles my checking account? I was never angered by this, but slightly annoyed. I know a little savings account sounds like small potatoes, but these stats make it slightly more of a problem for banks. 31% shared their negative experience with a friend or family member, opened an account at another financial institution, filed a complaint, or discontinued their relationship. In my case, this experience planted a seed of doubt in my mind. Is this how they handle mortgages, car loans, other products? If it is, I don’t know if I would want to keep my money there or continue to explore other financial services. I certainly didn’t up and leave my bank, but it was an inconvenience for me. I never actually did open that savings account, and certainly shared my experience with others.
Now my experience was definitely not a crisis, but I think it should concern a financial services company into digging deeper through their digital customer experience. My advice, help people who want to spend their money with you, the cost is too high if you don’t.
If you would like help on mapping or furthering your customer journey or positioning your financial products, especially to Millennials, please let me know. Our agency would be more than happy to assist.
JOHN CARUSO, BUSINESS DEVELOPMENT
John heads up business development at Elisco. His primary focus is to build awareness about the agency’s unique capabilities among prospective clients, in addition to developing and maintaining relationships with current and past clients. Prior to joining Elisco, he established and fostered supply chain management relationships at PLS Logistics. John graduated from La Roche College with a B.S. in Marketing and Business Management.