Connect with us


Maintaining customer loyalty should be the no1 priority

Customer loyalty is one such paradox which remains high in spite of the overall trust in the banking systems being very low. This has been the longest at the heart of the finance sector. However in any other sector, comparatively the low trust would lead to a different direction for the customers looking for services. The major banks are being able to pertain their client despite of these trust issues and more.

Even though the customer loyalty does not always pay, the right research suggesting consumers could over pay them by £2.9 billion. Especially in the areas such as mobile, broadband, home insurances, notably, mortgages and also in the area of savings. The results of customer weariness, lack of awareness on the possible cost savings or low expectations of the service banks provisions has encouraged the satisfaction in this sector. But this is about to change when the post pandemic reality will hit. All the extra time would have been used to do a little extra research and this will make the necessary shifts for the better alternatives. All this is a result of housing frustrations and the lack of support in recent times. Going through a season of negative interest rates, we can be heading towards a big storm. And in this storm, both the retailors and the SMEs will start to investigate their values, their current banks are providing.

One main reason of why the digitally naïve challengers are making the shifts of landscape is that the expected loyal consumers have towards the major banks has been the lack of the real alternatives. All these traditional high streets institutions which offer services that are largely inter changeable and which switch services have seemed to be putting more effort than what is really worth. But the perceived benefits were so small and minimum. This changed however, when the challenger banks arrived in the recent years. Banks such as Monzo, Starling and Revoult will continue to grow in the popular opinions due to the easy usage and better customer experience from the sing up to the app usages, throughout the process.

Liquidity is the primary advantage of these big banks and to that adding are the historical reputations and the long standing customer bulk. But the agility and accessibility of the challengers is ever-changing the landscape, and the continued dependence on legacy systems leave the traditional players hostile to exceed, or in most cases contest, the innovative services and the products fintechs are able to carry to the market.

Retail and other similar offerings, personalization with smooth tech intergrations, all these raises the expectations from the customers across many service industries and this is soon to be turned into battle field for the banks in the coming days. There are however few steps such as Embracing human science, adapting to the modern trend cycles, usage of innovative level to play the fields and personalizing the entire process, which the banks can follow to be well equipped in order to modernize the services they offer in order to retain the customer loyalty.  

The major banks retain a vital position in UK society for the sustenance and assurance offered to their customers. But in so many other sectors, the coronavirus pandemic could be seen as a crisis moment of evolution. It is the ability to have a data and technology driven method that can help them retain their supremacy and justify customer loyalty. But if they tend to fail in these, then there might be a chance of changing the landscapes as said.

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *


LexisNexis risk solutions study reveals sharp rise of financial crime compliance costs

Decision makers inside banks, investment firms, asset managers and insurance firms identify the drivers impacting financial crime compliance. LexisNexis® Risk Solutions revealed that the results of its annual True Cost of Financial Crime Compliance Study for the U.S. and Canada. The total projected cost of financial crime compliance for the region is approximately $49.9 billion. The survey illustrates the sharp increase in financial crime compliance costs.

The study projects the average annual cost of financial crime compliance for U.S. financial institutions with $10 billion. Pandemic Continues to Spur Growth. The pandemic continues to negatively impact compliance operations. Sixty eight percent of U.S. respondents report longer times required to complete due diligence. Fifty five percent of U.S. respondents report reduced productivity compared.

More U.S. financial institutions now rank real estate and hospitality as top money laundering risk segments. Crime involving digital payments, trade-based money laundering and money mule schemes are on the rise. Digital currency is a growing problem for Canadian firms. Crimes involving digital payments have the greatest impact on compliance costs. Cryptocurrency crimes have the greatest impact on compliance costs for Canadian firms. The survey results demonstrate that financial institutions are battling a broader set of issues.

Survey respondents indicate that a lack of current and extensive data tops the list of Know Your Customer (KYC). Leslie Bailey, vice president of financial crime compliance strategy for LexisNexis Risk Solutions stated that the study shows clear linkages between the pandemic, digital crime and increasing regulations. Hence, financial institutions need to prepare for expanded compliance obligations and risks from emerging financial crime. Bailey added that digital transformation is a game-changer for financial crime compliance operations.

This will require a sophisticated approach that incorporates insight into digital behaviors. This study surveyed 145 decision-makers in the U.S. and Canada. Responses were collected in June 2019, August 2020 and June 2021. Organizations such as banks, investment firms, asset management firms and insurance firms. The total annual cost of compliance across firms was calculated using survey data. The spend amount was generated by multiplying the average percent allocated to financial crime costs.

Continue Reading


COP26 delegates agree on need to deliver on $100 BLN climate finance pledge

Delegates heading to the COP26 U.N. climate summit in Glasgow. These delegates agreed that they must deliver on the $100 billion per year pledge. COP26 president Alok Sharma said that, it is to help most vulnerable nations for tackling the climate change.

After many days of meetings at the pre-COP26 climate event, which happened in Italy, Sharma said that there was a consensus to do more. Which is to keep the 1.5 degrees Celsius target within reach, adding more needed to be done collectively in terms of national climate plans.

The COP26 conference in Glasgow aims to secure more ambitious climate action. This is from nearly 200 countries, those all that have signed the 2015 Paris Agreement for limiting the global warming, well below 2.0 degrees Celsius. And to 1.5 degrees, above pre-industrial levels.

Continue Reading


City’s exposure to Evergrande is very minimal-Hong Kong finance Chief

Hong Kong’s exposure to debt-laden developer China Evergrande Group is very minimal at 0.05%. This is of banking assets, South China Morning Post reported, citing the city’s finance minister. Financial Secretary Paul Chan told the newspaper that it is very minimal and won’t cause them any systemic risks. He added that he had arrived at the conclusion after a recent audit of the local banking sector’s exposure to the company.

Chan also said that the Hong Kong’s stock market was inevitably subject to some volatility. This is amidst a recent mainland crackdown on some industries. But still he believed any setback would be temporary. With liabilities of $305 billion, Evergrande has sparked concerns its cash crunch could spread through China’s financial system. This may reverberate globally and that is a worry that has eased with the Chinese central bank’s vow, to protect homebuyers’ interests. Evergrande has missed two bond interest payments. Bondholders have said this and its offshore debt, amounting to about $20 billion, trades at distressed levels.

Continue Reading