If The Future of Retail Banking is About Relationships, Why Do Automated Phone Systems Exist?
In many retail banking articles and conference speeches today, you hear about retail banking shifting away from a transactional business, with phrases like “relationship banking,” the “importance of customer relationships,” and “the future is about building a trusted advisor relationship with our customers.” Certainly, the transactional side of consumer banking has changed dramatically as more financial transactions are now done via digital channels than in branches. The last 20 years have witnessed new digital capabilities introduced annually that siphon more and more functions out of the branch. This shift-to-digital has led to a reduction in the number of branches and branch staffing. In some quarters, it has led to predictions that branches will disappear in the coming years. Not everyone agrees with those predictions. There is, however, growing consensus that branch functions need to focus more on advisory services, making the branch of the future an “advice center.”
J.D. Power divides U.S. banking consumers into four broad categories. In a 2019 customer satisfaction ranking, they found that branch-using consumers were far more satisfied with their banking provider than digital-only consumers and that bias was seen in every age category. The customers who are least happy with their institution are those who are digital-only, who feel they do not have a relationship with their primary financial institution. [Reported in Financial Brand]
Forming “relationships” with anyone takes work. Psychology Today reports that four of the key elements of building healthy relationships are Trust, Respect, Commitment, and Communication. Trust is earned over time through a series of interactions that show you respect the other party, are committed to helping them, and communicate clearly and honestly to reinforce those elements.
By now, you are probably thinking, where the heck is he going with this line of thought. Bear with me for another few minutes.
The movement to digital was prompted by efforts to reduce expenses, at least initially. Over time, customers’ increased adoption of these channels for routine transactions made them a table stake for competing in today’s marketplace. In that same vein, banks and credit unions have been making changes to the other channel where customers interact with bank staff … the call center.
Over the last several years, firms have made significant changes to automated screening programs that customers must navigate to get to a live call center agent. Initially, the goal was to have the customer self-authenticate so that their information would populate on the agent’s screen when the call was routed to them, reducing the call time and reducing expenses. Then, additional screens were added, such as choosing which type of account you were interested in and what type of problem you were calling about. Purportedly, these additional screens were attempts to route you to the right department the first time, but in reality, were deployed as barriers at each screen so the bank could remind you that “many questions could be answered either in the online or mobile app.”
Today, it is not uncommon for the customer to spend up to five minutes navigating the multiple layers or routing choices. In the past, you could often bypass these screens by hitting “0” on your phone or saying the word “agent.” Those options seem to be mostly gone nowadays until you are well in the phone maze. In fact, even if the phone recognizes your request to speak to a live agent, the response is typically “Are you sure? You know that you can typically answer your questions online or in the mobile app. Call wait times may be long if you want to speak with a live agent.” If you persevere, you will ultimately get “Please hold for the next available agent. We apologize for the wait but call volumes are higher than usual.” God forbid you make the wrong selection in the journey and the call ends before you get to the right person. I can honestly say I get frustrated when I must call my bank, but my nearest branch is 15 minutes away. As an aside, I did contribute to that situation by closing lots of branches in my previous career. It’s not uncommon for me to end up yelling “AGENT!” into the phone—repeatedly.
Some banks and credit unions are making it eminently clear that they do not want to talk to you. Go away! People cost money and we’d rather you deal with us only via the lower-cost digital channels. Of course, along with this comes the standard phrase “Your business is important to us.”
When customers need to speak with someone about an issue, they either go into the branch or make a phone call. Some firms offer online chat sessions as well. We’ve all witnessed what happens when events force large branch closures, and all those millions of calls are funneled instead to the call center. Long waits, exasperated staff, and dissatisfied customers result.
I don’t have any statistics on how many people explore online options for answers before making the call to their bank or credit union as I do but given the high adoption rates for digital channels and the knowledge based on past experiences that call centers can be frustrating, I have to believe the rate is high. If I could quickly resolve an issue online, why would I call? So, when I call you, know that I have already tried the alternatives you will suggest.
Digital users claim no relationship with their providers. Relationships form from human interactions. Branch interactions are declining. With these factors and trends in place, why in the world would financial service providers want to make it even harder for you to talk to someone, especially if they “value your business”?
This customer experience inconsistency must be addressed. Keep in mind that most branches now have greeter staff to welcome you and quickly decide how best to help you. Imagine that in-person experience if the automated phone screening model were implemented in branches. Now that’s a horror movie.
