The concept of client experience (CX) is not new to the financial services industry but increasingly is a hot topic within Capital Markets – both in terms of delivering a better experience to clients across the lifecycle as well prioritising the right initiatives required to enable that change. While a CX focus can provide new perspectives on value, working methods and efficiency, the tangible benefits and impact delivered so far have been mixed.
This blog looks at why that is the case, and what steps leading firms can take to move the needle through innovating the client experience.
Human-centred design embedded within design and delivery teams is becoming the industry standard. This approach, which prioritises the client experience, is increasingly applied to tackle more complex, areas, where numerous attempts at transformation have not delivered results. By applying client-first thinking to challenge operational, technical, and cultural siloes, banks can help shape programme roadmaps based on client impact – be it in terms of revenue gained/lost or servicing cost.
Leading practice use cases, where CX applications can deliver impact include:
Common to each of these use cases is that, in many cases, the focus on clients and impact that matters has been lost. In its place, enabling technology, process flows, and data have been prioritised for delivery, with little consideration on the client impact.
Whilst banks have started to use more client-centric approaches in critical digital transformation programmes, results have been patchy so far. Nevertheless, moving from CX in name to CX in practice is critical to ensuring that outcomes deliver value. Specifically:
Using the existing client or internal journey as a baseline – including identified interim states – prioritise moments that matter for clients in automation or, in the case of onboarding, additional data requests that quickly shift the experience from acceptable to poor, especially where such a shift could be enough to trigger a client to switch to a competitor.
Shifting the focus from delivering transformation from the inside-out (e.g., people, processes, and technology) to an outside-in approach, where the client experience drives prioritisation is already delivering value for some forward-thinking organisations. Not only is it leading to greater client impact, but it is also helping firms to optimise the effort (and cost) expended to deliver.
Understanding where client pain points are through direct client engagement, and the canny use of data to understand both the target state and its impact, are the first steps on this journey.