It’s no secret that the banking industry is in a customer experience crisis. Adding to the challenge, retail banks are having difficulty retaining customers, according to a new Capgemini report. Over 70% of cardholders are indifferent or dissatisfied with their banking experience.
Despite 73% of credit card customers seeking exclusive experiences and rewards, only 26% report satisfaction with their current card offerings. The findings expose a significant disconnect between what customers want and what banks deliver. With nearly half (47%) of prospective customers abandoning onboarding due to poor experiences, the stakes have never been higher for retail banks to overhaul their card services.
The research points to a competitive landscape where traditional banks struggle to differentiate themselves from new-age rivals. The most common challenges include ineffective messaging, insufficient customer insights, and cumbersome application processes, with 75% of applicants facing delays due to incomplete documentation and identity verification issues.
Turning contact centres into intelligent hubs
Banks’ contact centre experiences are not shining either. Only 24% of customers find satisfaction in their interactions with contact centres, largely due to long wait times and inconsistent communication. However, 86% of banking executives plan to prioritise omnichannel experiences within the next year to boost client engagement.
Gareth Wilson, global banking industry leader at Capgemini, noted the need for a culture reset within banks: “Appealing to experience-driven urban consumers requires a shift toward customer centricity at every stage of the card journey.” Wilson said contact centres, often perceived as the industry’s Achilles’ heel, could be transformed into intelligent hubs that enhance customer engagement.
To navigate this loyalty crunch, banks must modernise their approach to onboarding and customer service. The report suggests that leveraging AI and generative technology could streamline processes and improve customer interactions, setting the stage for stronger relationships with cardholders.