‘Don’t Annoy Me’: A Cardinal Rule for Banks to Keep Consumers’ Trust

Consumers are sending a crystal-clear message to the banks and credit unions that have been trusted partners in their everyday financial lives, according to Doug Brown, president of NCR.

That message is just three simple words: “Don’t annoy me.”

For the banks that find the right mix of engagement, at the right time, the rewards are significant. Financial institutions (FIs) can cement customer loyalty and create new revenue streams. But they need to do so with a long-term strategy in place.

The greenfield opportunity to leverage digital channels and create long-lasting personal relationships with end users is significant.

Consider the fact that, as noted by global research conducted by PYMNTS, digital banking is an activity embraced by 60% of the population across 11 countries. As many as 16% of people “check in” with their FIs on a daily basis.

None of this is to suggest the physical footprint established by these FIs falls by the wayside. Digital has a place within the brick-and-mortar setting, said Brown. The branch, after all, is still where many people go for wealth and advisory services.

“You want to say hello, shake hands, ask questions,” said Brown, who added that “the big win is to get the whole wallet share.”

That frequency of interaction sets the stage for banks and credit unions to help guide those digitally engaged users toward better financial health, whether they are banking solely online or across a continuum of channels. There’s never been a better time for proactivity on the part of providers, given the fact that there is so much turmoil in the economy. And yet, these same consumers have some money in the bank, are employed, and are seeking ways to improve their balance sheets and stretch their dollars.

Reaching Out

The FIs are most appreciated by their end users when they set up curated outreach programs, and where promotions, services and financial products can be extended in real time, and in context.

“A few things are top of mind with consumers,” he said, especially given the soaring prices at the pump. The FIs that reach out and inform consumers where to find the best deals to get gas, to maintain their car and help save money through rewards programs will gain a leg up on the FIs that don’t.

NCR’s clients, he said are leveraging that opportunity to ping consumers “in the moment and in context, when it matters” on how to save 10% — and what to do with the money they save.

Beyond the current volatility as drivers fill their tanks, Brown noted that the app-and-cell-phone wielding customers tend to skew younger, and may have not faced the challenges of soaring inflation (or the vagaries of investing across platforms like Robinhood). Therein lies another opportunity for credit unions and their traditional FI brethren to help guide and even reassure them.

“These FIs can whisper that they’re in for the long term with those customers,” said Brown. Along with that assurance comes the importance of giving individuals the knowledge they want, when they need it. It must also be noted that their collective attention span is getting shorter. Banks have to leverage data, and advanced technologies such as artificial intelligence (AI), to pre-qualify offers and extend them in real time.

Call it a case of doing the necessary homework on the back end quickly, he said. If opening a mortgage account is going to be done better in person, the credit union can facilitate that service right away to an effective scheduling model, integrated with applicants’ calendars. Convenient placement of remote tellers in the branch can help get critical banking get done even outside of traditional hours. Tellers become trusted advisors rather than just helping to facilitate transactions. Bankers with tablets in tow can bring a range of services in the branch setting that had not been there before.

“It’s white-glove service,” he said, “and offers a full, rounded education model beyond the dollars and cents in the bank account.”

That white-glove service can, in an aggressive outreach (even using social media), help banks re-engage with consumers who may have lessened their financial interactions during the pandemic. And re-engaging customers can cut down on churn and new subscriber acquisition cost.

Making the branch more inviting and boosting digital interactions will pay dividends, said Brown.

“We’ve been invited ‘in’ by the consumers as an industry,” he said, “and now we need to capture the opportunity to deliver for them.”