Importance and scope of CX in the BFSI sector

The Indian BFSI sector finds itself in the throes of a monumental shift, a digital metamorphosis of sorts, stirred up by the burgeoning fintech revolution, stringent regulatory updates from the RBI, and a rising tide of fraud. This upheaval poses a pressing question: how can BFSI entities keep pace, maintaining clear, transparent communications and a robust rapport with their customers?

It is not just the BFSI industry, but customer expectations are on hyperdrive, too. The customer engagement landscape has been dramatically reshaped by burgeoning digitalisation across various industries, most notably consumer and e-commerce. Accustomed to the immediacy and interactivity offered by such sectors, consumers now expect similar app-based and gamified engagements from their BFSI providers. This expectation has necessitated a swift departure from traditional, legacy-oriented modes of engagement, compelling the BFSI sector to accelerate even faster their adoption of the digital tide.

Thus, the BFSI industry stands on a precipice, caught between a firmly rooted past and a rapidly evolving future. As they teeter on this edge, it is the sector's ability to adapt to these digital pathways of customer engagement that will dictate their survival and success in this brave new world.

BFSI: Surviving the Hypercompetitive Space with Enhanced CX

In this new environment, customer experience (CX) has emerged as a crucial factor for BFSI entities to keep customers informed about the status of their relationship, particularly in the face of increased digitalisation in other business sectors such as consumer and e-commerce.

Amidst this complex transformation, the BFSI sector finds itself at a crossroads, with enhanced CX becoming a significant tool in its survival kit. The industry, rife with competition from both private and public entities, is in a race to revamp its traditional brick-and-mortar branches and online portals to attract more customers. In this era of digital-first banks, the battlefield has shifted towards delivering exceptional CX to not only retain customers and gain a competitive edge, but to also offer a wider portfolio of services to the same customer.

Personalized CX: The New Norm

Personalizing CX has become a priority for BFSI companies, as it allows them to meet their customers' unique needs, reduce acquisition costs and increase revenue through effective cross-selling. This delicate balance between automation and personalized services is critical for companies seeking a competitive edge in this cutthroat environment. Achieving this can be challenging, but it is essential for BFSI companies aspiring to maximize the potential of their relationship with customers.

Leveraging Digitalised Tools for Superior CX

The rise of digital channels has transformed customer interactions in the BFSI sector. Advanced tools such as artificial intelligence (AI) are increasingly being deployed to enhance customer experience. AI-powered chatbots, for instance, provide round-the-clock support, freeing customers from the constraints of time zones, location or the fixed hours of human support agents.  And with all the noise around ChatGPT, various organizations are also testing out what can be done within the regulatory framework to enhance customer experience, either directly or by enabling customer facing teams. 

Customer Relationship Management (CRM) tools are another key resource that BFSI companies are leveraging to gain a comprehensive overview of customer behavior. Such tools can create cross-selling and diversification opportunities, enhancing CX in the process.

Prioritising Data Security in CX

In an industry that regularly handles sensitive and confidential customer data, data security and privacy concerns can't be overlooked. Access to a single number can expose the whole history of transactions and activities of the customer to unauthorized personnel. As a result, partnering with credible CX partners that prioritize data protection is crucial for BFSI companies. 

Ensuring that customer information isn't exposed to unauthorized individuals is essential in maintaining a secure digital environment while providing advanced digital features. This is especially important in a highly competitive market, where customers have numerous options to choose from.

Conclusion

In conclusion, to optimize CX, BFSI businesses must adopt a customer-first approach, actively listening to their customers' feedback, observing their behavior, and leveraging their suggestions. By prioritizing data security and accessibility, they can build a strong reputation, establish trust with their customers, and stay ahead of the curve in this fiercely competitive industry.

The article has been written by Angira Agrawal, India and SAARC Business Head, Exotel