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Creating the smarter knowledge bank
October 2008
Banks already hold an enormous amount of customer information, and admit this is perhaps not currently used in the most advantageous way to offer customers better advice and better service. The main issues stem from having the right information, in the right place, at the right time. In many banks the customer advisory and relationship model is based around the branch.
However, customers are increasingly demanding a multi-channel advice model. There is considerable scope for banks to offer a more integrated customer advice service which is available across all distribution channels and makes the very best use of customer knowledge and product knowledge available within the bank. The Council members accept that banks are currently weak in this area and significant improvements are required.
Banks need to decide on the extent to which they pursue a self-help model for the provision of advice, or how much the service is personalised and available at the branch level. Segmentation is likely to play a key role in how customers see future improvements in the way banks offer advisory services to them. Personalised face-to-face quality advice is likely to be made available only to high profit customers, whilst low profit customers will be moved to a low-cost self-service model.
Banks will need to become more sophisticated in the way they collect and utilise customer information. More advanced methods will be required to ensure banks have the right information available at the right time to offer timely advice to customers. Banks that can demonstrate a coordinated use of customer intelligence are likely to gain a considerable competitive advantage over others that do not have this capability.
Technology is not seen as an inhibitor in the creation of a smarter knowledge multi-channel bank. Indeed technology is available to enable banks to coordinate both customer intelligence and product information, and therefore offer more personalised and tailored advice. As with the previous two Banking Advisory Council reports, people and staffing remains an area of concern to our members. The greatest difficulties are associated with getting the right people skills and training to provide quality service and advice, and providing frontline staff with better information.
Increasing compliance and regulation will force banks to dedicate more resources to ensuring they collect and utilise customer information in a ‘best advice’ manner, and can demonstrate this compliance to regulators.
However, customers are increasingly demanding a multi-channel advice model. There is considerable scope for banks to offer a more integrated customer advice service which is available across all distribution channels and makes the very best use of customer knowledge and product knowledge available within the bank. The Council members accept that banks are currently weak in this area and significant improvements are required.
Banks need to decide on the extent to which they pursue a self-help model for the provision of advice, or how much the service is personalised and available at the branch level. Segmentation is likely to play a key role in how customers see future improvements in the way banks offer advisory services to them. Personalised face-to-face quality advice is likely to be made available only to high profit customers, whilst low profit customers will be moved to a low-cost self-service model.
Banks will need to become more sophisticated in the way they collect and utilise customer information. More advanced methods will be required to ensure banks have the right information available at the right time to offer timely advice to customers. Banks that can demonstrate a coordinated use of customer intelligence are likely to gain a considerable competitive advantage over others that do not have this capability.
Technology is not seen as an inhibitor in the creation of a smarter knowledge multi-channel bank. Indeed technology is available to enable banks to coordinate both customer intelligence and product information, and therefore offer more personalised and tailored advice. As with the previous two Banking Advisory Council reports, people and staffing remains an area of concern to our members. The greatest difficulties are associated with getting the right people skills and training to provide quality service and advice, and providing frontline staff with better information.
Increasing compliance and regulation will force banks to dedicate more resources to ensuring they collect and utilise customer information in a ‘best advice’ manner, and can demonstrate this compliance to regulators.
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