Summary

• BFSI companies are floundering, trying to adapt to a rapidly digitizing market.
• A top-to-bottom infrastructure re-alignment towards customer-centricity is imperative.
• Holistic service suites can help BFSI companies compete with fintech disruptors.

When we think about creative marketing campaigns with instant recognition value, chances are a bank or an insurance company is not the first thing that comes to mind. The BFSI sector has coasted along in the past, by virtue of being an “essential” service.

However, fast forward to the era of fintech solutions, and the banking sector finds itself competing for visibility. Today, BFSI companies are pondering two fundamental questions: where did we drop the ball, and what is next?

The fundamentals

Our search for answers to these questions begins at the sector’s roots. 

• Core banking services: Bank-centric services for account-holding customers
• Financial services: Stocks, shares, and mutual funds for customers with financial portfolios
• Insurance services: Serves customers seeking life insurance and other general insurance policies.

Across these three categories, you will notice one common buzzword: customers. Neglecting this aspect has had an adverse effect on their perception, as shown by Accenture’s 2020 survey, where a paltry 29% of consumers trust their bank to safeguard their long-term financial interests. What can the BFSI sector do to step up its game?

Paradigm shifts

According to the 2020 Digital Banking Report, industry leaders agree that digital transformation, personalization, and education are the focal points for better CX going forward. With these three anchor points in mind, the shortcomings of the sector become more apparent.

• Lack of digital service implementation: Today’s banking customers prefer a smooth account management experience at their fingertips. Most banks, however, offer niche functionalities, complicating online interactions for their customers. Since popular fintech companies stand out with innovative applications linked to bank accounts, the banks themselves are falling by the wayside.

Solution: Remote access banking is the need of the hour for over 50% of customers. By investing in dedicated apps that offer holistic financial services, banks can improve customer retention due to streamlined access.

• Interactivity issues in services: Most financial services, while fully functional, lack immersive interaction with customers, especially for complex finance portfolio management demands that require scrutiny. This one-size-fits-all approach ends up denting customer loyalty.

Solution: The inclusion of online touch points like chatbots can make customers feel heard, assisting with their queries in real time. Integrating these capabilities with live customer support can streamline CX from start to finish.

• Educational content deficit: Over the past couple of years, there has been a surge in interest across the board to learn the art of managing finances. People want the assurance that their money is in safe, capable hands. Lack of transparency, unsurprisingly, can sow general distrust among your audience.

Solution: Putting up short explainer videos of service offerings on your social platforms can have a dual benefit, propelling your online reach and building customer loyalty. Some finance giants have gone the extra mile and developed standalone LMS-style apps to “teach” financial concepts, like Varsity by Zerodha.

Customer first

The BFSI sector currently exists in a state of flux, requiring members to adapt to changing trends and audience demands. To compete with the fintech disruptors and established brands alike, shifting to a customer-centric approach is top priority. Smarter, intensive marketing can bridge the gap to the big leagues.