The recession playbook has changed and Quadient’s banking trends for 2023 suggest that banks need to step up their support for customers. With economic uncertainty on the horizon, banks need to move from reactive to proactive support to help customers overcome financial pressures and maintain excellent communication. In this blog, we'll explore three key trends that banks need to pay attention in order to meet the changing needs of their customers in 2023.
1. Moving from reactive to proactive support
Banks must proactively seek out customers who are likely to struggle and offer advice and help in advance. This will require a shift from the current reactive support model where customers reach out to banks for help. By analysing monthly outgoings, banks can provide early warnings and give customers the time they need to adjust and prepare before problems arise.
In providing advice, banks need to take into account that the recession playbook has changed, and consumers now have higher standards of living. For example, while satellite TV packages were considered a luxury in the 1990s, today’s streaming services are a basic expectation. By offering practical and proactive help, banks will earn the loyalty of their customers.
2. Segmenting the customer base to meet their duty of care
As mortgage rates climb and the recession takes hold, the way banks communicate with their customers will become increasingly important. Banks can no longer simply inform customers of price increases or rate changes. Instead, they need to dig deeper and understand the potential impact that these changes may have on individual customers.
To meet this challenge, banks will need to segment their customer base and understand where their customers are at. This means providing support as they make payments and helping them understand what’s happening to their finances and why. Banks that segment their customer base will be better equipped to deliver personal and considered news to their customers.
3. Compliance with tightening regulation
The bar for customer experience has been raised and this trend is likely to continue. The Consumer Duty now requires organisations to put the customer first and provide them with the best possible outcomes. This means that for those customers who may be struggling, banks need to be offering products with the best interest rates or more flexible overdrafts. Banks have until July to get their house in order. Financial organisations have until July to comply with this regulation. Banks that use customer data to understand their customers’ needs and offer the best products will be better positioned to comply with this regulation and avoid regulatory action.
In conclusion, banks need to step up their support for customers in order to navigate the uncertain economic conditions ahead. By moving from reactive to proactive support, segmenting their customer base, and complying with tightening regulations, banks will be better equipped to meet the changing needs of their customers in 2023.
With nearly 2 decades of experience at one of the worlds largest banks, Andrew is ideally placed to ensure that Quadient’s product suite continues to evolve to meet the needs of today’s financial institutions. His resume covers all aspects of banking operations and technology with respect to customer communications management and customer experience, and he has built a reputation as someone that can successfully execute complex international transformational projects in these fields. He earned his law degree in his home town of Sheffield, UK.