02/15/2018

Customers Are Switching – Is Your FI Safe?

Mehul Patel February 15th, 2018

How to switch-proof your financial institution by putting the customer experience first in your RDC offerings

Lines. A generation ago, standing in line was routine for almost any sales or service-related activity: Checking out at the grocery store. Buying a ticket at the movie theater. Getting a cab from the airport taxi rank. Checking into a hotel. Paying tolls on the highway. Depositing your checks at the bank. Even asking a question or solving a customer service issue usually meant waiting on hold or navigating a complicated phone tree.

Fast forward to today. To most customers, waiting now signals an outdated or broken experience. That’s because technology innovators have revolutionized every single example in the previous paragraph:

  • The new Amazon Go store leverages sensors to track customer purchases; just bag your items and head out.
  • Apps make it simple to buy your movie ticket at home, download a digital hotel key or hail a rideshare to your exact location.
  • Vehicles with telematics transmit real-time data to pay tolls automatically, erasing interruptions from your drive.
  • Sleek and intuitive self-service tools have proliferated, putting answers at your fingertips.

And of course, in financial services, Remote Deposit Capture (RDC) solutions have eliminated the time and effort of depositing paper checks.

What does this evolution signal for businesses—and banking?

It means that the customer experience is now a critical driver of satisfaction and loyalty. Businesses and consumers alike expect fast, intuitive and frictionless experiences.

In financial services, increasingly, it is the quality of these tech-driven solutions—rather than fees—that triggers a banking switch. Customers are placing a premium on digital tools that make it faster, simpler and more convenient to manage their funds. Absent these, businesses and consumers are not afraid to shop around.

Consider two demographics that are often underserved by banks and credit unions, Millennials and small and medium-sized businesses (SMBs):

  • One in five SMBs “probably” or “definitely” plan to switch financial institutions in the next two years.¹
  • For businesses run by Millennials, the number rises to one in four.¹
  • Across both demographics, 70% want a robust mobile RDC (mRDC) solution in a new banking partner.¹

The caliber of your RDC solution—and the customer experience it creates—can be a make-or-break service. Done right, RDC can help increase customer satisfaction, boost loyalty and deepen relationships—all while fueling growth and boosting revenue for financial institutions.

Take a proactive approach

SMBs and Millennials, in particular, value time-saving tools and intuitive experiences. However, just 1 in 10 banks today offer an mRDC solution that meets SMB needs.²

As the RDC market enters maturity, financial institutions must move beyond a passive, one-size-fits-all approach that serves all customers with a singular solution. Banks and credit unions must be proactive in customer outreach, deliver relevant messages and offer RDC capabilities that match the specific needs of each market segment.

Make a start with these three essential strategies:

Put customer experience first. Evaluate your current RDC offering with a critical eye. What’s missing that might hamper adoption by new customers? Likewise, what would persuade current RDC users to deploy more scanners, combine desktop and mRDC or boost deposit volumes? Communicating the value of multiple capture points and easing daily deposit limits are two simple switches that can make a sizeable impact.

Help businesses do more. As RDC becomes essential to personal and corporate receivables, demand will move beyond basic scan-and-deposit features. To win at customer experience, financial institutions must develop RDC packages tailored to the specific needs of business customers. Must-have capabilities include depositing multiple checks in one session, capturing payment-related documents (such as invoices and remittances) and updating accounts receivable systems automatically.

Team up with the right provider. Just as solution functionality is growing, so is the impact of an RDC provider on a bank’s long-term success—good news for banks and credit unions with limited internal resources. With the right provider, you can transform your customer RDC experience into a competitive differentiator. Through a combination of innovative technology, industry experience and dedicated resources, leading RDC providers now help streamline administration, optimize onboarding and accelerate customer engagement. Working together, both first-time onboarding and platform migrations become swift and painless for customers

With these strategies in place, financial institutions can deliver the next-generation capabilities, full-featured service and ease of use that customers now expect. Doing so will increase customer satisfaction, deepen relationships and unlock new revenue streams with untapped market segments.

Ready to win big with customers? This new playbook highlights nine proven ways to maximize your RDC opportunity and delight more customers.


¹Aite Group,“Unlocking the Revenue Potential of Business Mobile Capture,” September 2017

²Celent,“State of Remote Deposit Capture 2017: The Final Stretch,” March 2017

 

This content is accurate at the time of publication and may not be updated.