The banks’ customers have very varied demographics, ranging from businessmen to salaried personnel, an uneducated farmer to a corporate CEO, and the most interesting and contrasting set is that banks have customers who are Baby Boomers and older members of Gen X who typically value human interaction and prefer to visit physical branch locations and also gen z, who want to experience the meta-verse world only. These millennials were also found to make up the largest percentage of mobile banking users, at 47%.
This presents banks and credit unions with a unique challenge: How to satisfy older generations and younger generations of banking customers at the same time? The answer to this banking industry challenge is a hybrid banking model that integrates digital experiences into traditional bank branches.
Currently, banks have traditional or hybrid branches in urban areas, where people hardly visit the bank, even if it is just 500 m away because they are digitally literate and also keep on upgrading themselves. The rural population, who is not digitally literate also does not have any traditional branches in its vicinity.
So, managing such diverse expectations of customers is not an easy task and it is not just customers’ expectations.
The organizations that put in the effort to articulate, understand and address the customer’s expectations, surely are able to control customer churn and retain their customers and these are the institutions that see every challenge as an opportunity.
So banking leadership must adopt a “business of Relevance” approach for each existing or potential customer and be obsessed to create a Value-based experience for him.
