Today's financial services and insurance providers (FSI)
are facing heavy pressure to increase revenue. The market
is unpredictable, competition is steep and new fintech startups
are emerging to compete with established players.
The competition for wallet share has quickly turned into a race
to appeal to new customers. The most valuable prospects are
members of younger generations (millennials and Gen Z), who
offer the potential for a long relationship. However, these younger
clients are accustomed to a digital-first consumer environment
and have high expectations for FSIs. To appeal to them, the
traditional service delivery model has to be entirely rebuilt.
According to Salesforce's The Future of Financial Services,
only 25% of customers are satisfied with the apps and websites
of their current insurance/wealth management provider. Since
more than 40% of new customers are initiating FSI relationships
on those platforms, it's important to improve the digital
customer's experience.
Across all types of financial services, ease of use tops the list
as the most common reason customers switch providers. As
FSIs modernize their services, the most important area of focus
should be reducing customer friction and delivering a convenient,
personalized cross-channel experience. The right investments
in this area will ensure better customer satisfaction, lower
abandonment rates and accelerate new business.