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.