Why banks and insurers must improve the digital experience

Posted by media on October 22, 2015 at 9:00 AM

The banking and insurance sectors are often characterized by the high degree of customer loyalty. In the case of financial institutions, a recent study by Lukkap1 revealed that 50% of participants stayed with the same institution without switching banks. However, both this and other research underscore that in most cases, there is no correlation between this duration and real satisfaction. Many customers do not change bank or insurance company because they perceive these changes as complex and cumbersome.

Given this situation, it is natural that these two industries have managed to delay the reinvention process that is already affecting many others, such as the housing or transport industries. But this “quiet status” is already changing.

What should banks and insurers do?
Improve the user experience.

This post is also available in Spanish.

On the one hand, a change comes from the emergence of a new type of consumer (called millennials) characterized by being much more demanding when they acquire or enjoy products and services than previous generations. This client/user profile expects further customization of the companies with which it interacts.

And, on the other hand, a changes comes from the emergence of tech companies that are redefining banking and insurance services: Fintech companies are revolutionizing the way we make payments, investments or request loans.

In this context of increased demand from consumers and expanded competition, banks and insurers must focus on improving the user experience they offer to their customers.

With respect to the topic, Anne Pascual, Design Director at the global design firm IDEO, pointed out in an interview with Wired that "finance, money and banks are part of our daily life and are common sources of tension." She concluded the interview adding that "design is an approach to deal with the complexity and can help us meet the challenges and problems that we face daily".

Javier Añorga, Sales VP at ING Direct Spain, was even more direct when picking up a prize for his company, precisely because of their user experience, in the last IMEX congress. Añorga said that "financial products are easily replicable, but the user experience is not; hence its importance."

The challenge is obvious, but where do banks and insurers start?

According to the report "Investing in Customer Experience to grow" by Boston Consulting Group and the DEC Association2, the challenge is considerable. In Spain, the average customer satisfaction in respect to banks is the second lowest in fifteen sectors. The companies that are doing the worst have a prescription level of -35%, which means that more than 3 out of 10 dissatisfied customers advise against using their own bank.

The same study shows a second interesting conclusion: the best banks in user experience are those most recently created or those with less infrastructure. In particular, Bankinter, ING Direct and EVO. This should be understood as a warning to traditional banks, but also an encouragement to those who are thinking to enter the sector with a disruptive value proposition.

How can you  improve the user experience?

The report by Lukkap mentioned above includes some macro trends on user experience that can be extrapolated to both the banking and insurance industry:

  • Consumers are increasingly demanding one click systems, in which a single mouse click or a single touch on the mobile screen completes a task and saves time.
  • The positive perception towards going cashless is becoming widespread: the use of cash loses strength over other types of transaction tools.
  • There is growing demand that providers of banking and insurance services should not only sell their products and services, but they should also offer personalized advice and tips.  
  • Customers increasingly want to make fast, simple and secure transactions and appreciate that companies anticipate their needs.
  • Continuous support and omnichannel presence is the new normal.

These trends may be related to the five areas in which banks and insurers should review further the experience they are offering to their users: operations, monitoring, access to information, proactive services and troubleshooting.

In all cases, the changes must be oriented in four directions at once:

  • The experience must be user friendly: close, friendly and simple in traditionally opaque policy areas, such as bank fees or the coverage that a particular policy provides.
  • Greater personalization: Users must perceive that their bank or insurance company offers them new products based on the analysis they made of already contracted products and services.
  • Transmit greater confidence: try to make the user feel accompanied in complicated decision-making processes like financial management or insurance choices.
  • Agility, speed and agility again: the process should be fast and seamless. In the digital world, users are used to immediacy.

Signaturit is an electronic signature tool that can help banks and insurance companies to provide a friendly, agile and reliable user experience when carrying out any type of transaction: opening a bank account, taking out a loan, a mortgage or a home insurance policy, etc.

Any of these activities can now be performed remotely via the Internet, but often, the buying process should be completed offline. The realization of the signature of contracts still often requires the presence of the client in the office. Or the other option is that he/she has to print and scan the required documentation, sign it, and send it back by email to the bank or insurance company.

The solution we offer at Signaturit is easy to implement, is scalable and meets the current legislation, in the EU and in the USA, to sign contracts and documents online. Without electronic signatures, no transaction can be completed in a 100% digital way.

Why not incorporate electronic signatures to provide an enhanced user experience in the financial and insurance industry? Try Signaturit for free. And if you have any doubts about its safety, legality or implementation, please contact us at (+34) 935 511 480.

This post is also available in Spanish.



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1. Medición Experiencia de Cliente en Banca - Lukkap (In Spanish)
2.  Invertir en Experiencia de Cliente para Crecer - BCG y Asociación DEC (In Spanish)

Topics: Finance & Insurance

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