Poor Customer Experience Costs Financial Institutions $10 Billion Per Year
1 out of 3 Financial Institutions Lost Customers Due to Inefficient or Slow Onboarding Processes
31st January 2019 – Fenergo, the leading provider of digital Client Lifecycle Management (CLM) software solutions for financial institutions, today announced findings from the company’s industry trends report series, which found that “poor customer experience” is costing financial institutions $10 billion in revenue per year. The report, the first of a three-part series, provides insights from global decision makers within large scale financial institutions towards customer experience within CLM, the end–to–end process management of a client relationship. Touching upon the need to improve the customer experience and obtain an enterprise-wide view of client and counterparty data, the report also highlights how financial organizations are being driven to digitally transform their entire customer journey, from the very first touchpoint to day-to-day trading.
Some findings from the Cost of Poor CX Report include:
- 1 out of 3 financial institutions have lost customers due to inefficient or slow onboarding (36%)
- Improving data and document capture is ranked the highest critical business issue and pain point across the board (31%), against complying with the rising number of regulatory requirements (19%) & improving data management (18%)
- 81% believe poor data management lengthens onboarding and negatively affects customer experience
- 84% believe the client experience during the onboarding process impacts the lifetime value of the client
- When it comes to the types of banks that have lost a client or prospect due to inefficient onboarding processes, commercial banking leads the charge (42%) followed by business banking (37%), investment banking (37%) and corporate banking (30%).
Commenting on the Report
Marc Murphy, Fenergo’s CEO, said:
“This report clearly shows the impact that client onboarding inefficiencies and a hesitancy to digitalize processes have on the customer experience and how it directly effects financial institutions’ bottom line. With challenger banks disrupting the customer experience, the efficient handling of client data through digital transformation must be achieved by organizations if they are to gain a competitive advantage in today’s digital-first world,”
Greg Watson, Global Head of Sales at Fenergo, commented:
“2019 will be the year when financial industry will be challenged to digitalize the entire customer journey end-to-end. Medium-to-large scale businesses want to be onboarded in days not weeks, while retail consumers expect to open accounts in minutes not hours. Combine this with the global economic environment, it’s never been more important for financial institutions to deliver value to their customers and differentiate themselves from competitors. The adoption of a digital CLM solution will be imperative in achieving this.”
The three related research reports are based on the findings from a global proprietary market survey commissioned by Fenergo. The survey engaged with 250 C-suite executives across commercial, business, investment/institutional and corporate banking institutions. Respondents were based in financial institutions of varying sizes, from 0-500 employees to those boasting 10,000+ employees, with their primary location of operation spanning UK & Europe, Middle East and North Africa, Asia Pacific and North America.
Download the report here.