6 CX Predictions for 2019 & Beyond

As companies across all industries evolve to remain competitive in today’s blossoming economy, it’s more important now than ever that banking institutions not only meet but exceed their customers’ or members’ demands. Modern consumers want help as soon as they ask for it and they want it on a variety of channels, whether in-person, on a mobile app or by phone.

Traditional financial services players like Suntrust and BB&T have recognized the evolving market, merging in order to meet their customers where they are, committing resources and implementing technology to be “digital first.” But this merger is only the start, as the banking industry as we know it continues to change, and companies need to re-devote themselves to the consumer, or risk falling short of their competition.

In order to deliver an experience to consumers that rivals the likes of global leaders like Amazon, financial institutions will shift focuses in 2019 and begin to implement not just emerging technology, but experience management (EX) strategies in order to meet their customers or members in the middle. Here are six predictions as financial institutions cultivate the experience they deliver their customers or members, in 2019 and beyond:

1. Brands will prioritize texting, in-app and social channels for millennial feedback. Often times, brands experience low customer feedback response when emailing millennials. Because this demographic conducts most of their banking on mobile devices, brands will focus their feedback approach based on the preferred channel and demographics in order to gain important insight into customer experience.

2. Customer support representatives will make a comeback. Consumers have expressed increasing frustration with the lack of human interaction when it comes to customer support, especially in those transactions requiring specialized advice and guidance. While the drive to digitization will continue, it will be complemented by the use of human agents for those more complex interactions. In the years ahead, there will be a return of the customer support representative that, when coupled with digital, self-service options, can help to address all customer frustrations, both simple and complex.

3. Millennials will no longer be the only demographic to win over. The recent census showed that the 55-plus age group is the fastest growing adult demographic in the U.S. and the only one expected to grow over the next dozen years. In addition, Gen X’s share of national wealth will grow faster than any other generational segment, according to Deloitte, making them an attractive target for financial services firms. Since consumers under 55 are reportedly more satisfied than respondents aged 55-plus across all sectors, financial services firms will need to make sure their customer or member experience efforts understand the specific needs of the older generations as well as millennials.

4. The era of instant gratification will only get more demanding. With the projected progression of offerings like Amazon Prime and same-day delivery, consumers’ demand for quicker response times and more immediate solutions to their complaints and questions will only continue to build. Whether implementing automated chatbots online or improving banking apps’ capabilities, financial institutions must up their ante as they battle these heightened consumer expectations.

5. Experience symbiosis (CX = EX) will gain importance. For many institutions, meeting consumer needs while maintaining profitability can need careful calculation. In the year ahead, companies will begin to value and reward their employees as much as their customers. Starting in 2019 and continuing for years to come, companies will start to understand that they are unable to provide customers with an exceptional experience without first ensuring their employees are content in their roles. Companies will recognize the importance of empowering their employees, both with feedback from customers and with the information needed to excel in their positions. This shift will have a lasting impact on their overall brand perception from both employees and customers.

6. The importance of AI will continue to rise. Financial institutions have access to tremendous amounts of data – both transactional and experiential. Determining how to use this information in a way that is helpful to consumers without being intrusive is critical, particularly given the existing disruption in areas such as lending, risk assessment and wealth management. In 2019, the industry will continue its focus on creating artificial intelligence-enabled solutions that safeguard consumer data while using it to better their experience with the brand.

As we look ahead to the next 10 months or the next 10 years, it’s easy to see that the financial services industry is evolving. Big-name banks, fintech startups and every company in between will work to remain agile and competitive, moving experience – for both consumers and employees –to the forefront of their business models.

The recent merger between SunTrust and BB&T proves the need for financial institutions to become more efficient and invest more and more resources in technology. With a merger of this size, there could be a seismic shift in the marketplace toward M&A, as more small and mid-level banks invest in the tech space and commit to fintech practices. Because in the end, change is constant, disruption will remain and the bar will continue to be raised, so banks and credit unions must be agile and innovative in order to keep up.

Diane O’Hara is Solutions Principal for Medallia. She can be reached at dohara@medallia.com.