The Age of Consumer Convenience and Peace of Mind
The banking industry has undergone a profound transformation from AI that places focus on personalisation, privacy and direct engagement, says Palesa Nhlapo, Customer Growth Head at FNB Personal Segment.
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As a child, I vividly recall accompanying my parents to the bank. It was a significant event for them, and they would dress up for the occasion. We’d stand in long queues, patiently waiting to withdraw substantial sums of money from the teller. There was a dusty old “compliments or complaints” book, largely ignored by consumers who preferred not to draw unnecessary attention, reminisces Palesa Nhlapo, Head of Customer Growth Head at FNB Personal Segment.
Fast-forward to the present day, and the banking industry has undergone a profound transformation from AI, personalisation, privacy and direct engagement. We now inhabit an era dominated by platform businesses and mobile applications that place utmost importance on consumer convenience and peace of mind.
“Trust remains paramount, consumers need assurance that their assets are well cared for. In this dynamic landscape, banks navigate the fine line between innovation and responsibility, all while safeguarding the financial well-being of their customers,” says Palesa.
As the Customer Growth Head at FNB Personal Segment, Palesa prioritises gaining a comprehensive understanding of customers and promoting empathy across the organisation through dedicated customer advocacy.
Her responsibilities include both attracting consumers and cultivating long-lasting connections. Palesa achieves this by proactively addressing the obstacles customers encounter during pivotal moments, such as offering guidance on optimal savings and credit strategies to help them navigate their lives with ease and security.
Martechvibe spoke to Palesa about the state of the banking industry, customer loyalty, and the emerging technology that excites her.
Excerpts from the interview:
How are customer expectations changing? What are the challenges that banks face?
As a child, I vividly recall accompanying my parents to the bank. It was a significant event for them, and they would dress up for the occasion. We’d stand in long queues, patiently waiting to withdraw substantial sums of money from the teller. There was a dusty old “compliments or complaints” book, largely ignored by consumers who preferred not to draw unnecessary attention.
Fast-forward to the present day, and the banking landscape has transformed dramatically. We find ourselves in the era of platform businesses and mobile apps that prioritise consumer convenience and peace of mind. Some notable shifts being:
24/7 Availability: Gone are the days of rigid banking hours. With apps and digital platforms, customers can access services anytime, anywhere. The angst around time constraints has dissipated.
Privacy and Direct Engagement: Customers now interact directly with service providers from the comfort of their homes. Privacy is assured, and personal engagement is facilitated through digital channels.
AI and Personalisation: Artificial intelligence and machine learning algorithms help sift through vast amounts of content, tailoring recommendations based on individual behaviour. It’s like having a personalised financial advisor at your fingertips.
Innovation Abounds: Consumers are exposed to innovative and superior experiences. Whether it’s seamless fund transfers, investment advice, or real-time notifications, banks strive to stay ahead of the curve.
However, banks face a delicate balancing act. While meeting evolving consumer expectations, they must also adhere to regulatory requirements. These demands ensure control, prevent misuse, and maintain the institution’s integrity. Trust remains paramount, consumers need assurance that their assets are well cared for. In this dynamic landscape, banks navigate the fine line between innovation and responsibility, all while safeguarding the financial well-being of their customers.
How do you gather and utilise the voice of the customer to inform decision-making and increase market share and value creation?
As we delve into the world of customer interactions, it becomes evident that they leave subtle trails—breadcrumbs—across their habitual activities. The “voice of the customer” can manifest in various forms: direct feedback from surveys, sentiments expressed on social media, commissioned research, and more. Alternatively, it can be extrapolated through data analysis, where countless customer data points are aggregated to reveal trends or weave compelling narratives.
Once all these facets are harmonised, a comprehensive customer context emerges. Often, within this context, we identify micro segments —distinct groups with shared characteristics. These insights serve as the foundation for crafting improved value propositions. By addressing trends that hinder customer consideration and adoption of our offerings, we can create more compelling value propositions that resonate with our audience.
Can you share your vision for the future of customer value propositions at FNB South Africa?
The vision for the future of customer value propositions at FNB SA revolves around leveraging existing and new customer frameworks that enhance our understanding of a typical day in the life of our customers. By doing this, we can craft customer-centric solutions that go beyond their expectations. The invaluable insights we gain from our customers allow us to integrate seamlessly into their lifestyles in a helpful, safe, and easy manner. This organic alignment with their needs must always be our North Star.
This is why as FNB, we have strategically and consistently positioned ourselves as a platform-based and advice led financial and lifestyle service provider.
How do you measure and track customer loyalty at FNB South Africa, and what strategies do you employ to drive up profit through customer loyalty?
Customer understanding and empathy are pivotal in our approach to onboarding, engagement, and customer retention. To gauge loyalty effectively, we rely on metrics that meticulously monitor engagement levels and the utility of solutions for each micro segment. As part of monitoring engagement levels, we take into consideration the feedback received on our customer experience so we can still fine-tune our efforts to still retain our customers and their loyalty.
These metrics allow us to pinpoint disengaged customers, uncover the underlying issues, and explore potential remedies.
Loyalty, a critical lever, directly impacts profitability. As the age-old marketing wisdom suggests nurturing existing customers is more cost-effective than acquiring new ones.
Also Read: How Can BFSI Reimagine Customer Value?
If you could design a CX metric, what would it be and why?
In constructing a Customer Experience (CX) matrix, I propose drawing insights from the marketing customer journey. This journey encompasses several pivotal stages: customer need, research, consideration, decision-making, purchase, usage, and loyalty. At each juncture, it is critical to assess how customers perceive their interactions with your brand.
In our current information age, the process of obtaining such data has been optimised. Consumers leave digital footprints across various touchpoints—within our business and on public platforms like social media. These footprints provide valuable cues for measuring and enhancing the customer experience.
What emerging tech excites you? How do you see CX evolve in the next decade?
From a CX standpoint, several technologies excite me:
Machine Learning (ML): ML empowers providers to construct algorithms that learn from customer behaviors. By analysing patterns, ML can predict future actions, leading to more precise customer prompts.
Platform Businesses: These dynamic ecosystems facilitate seamless interactions between customers and services. They enable personalised experiences, efficient transactions, and holistic engagement across previously unrelated journeys.
Extended Reality: Extended Reality immerses customers in captivating environments. It enhances engagement, product visualisation, and interactive storytelling.
Big Data: The aggregation of diverse customer contexts through big data opens exciting possibilities. Imagine a world where customers can simulate “what if” scenarios with enhanced accuracy. For instance, consider skipping dinner and saving your weekly take-away allowance. With AI and integrated technologies, we could approximate the real-world outcome more closely.
In this ever-evolving landscape, who knows what remarkable transformations await?
