Why customer trust is crucial in digital banking and how to make customers trust

Surprisingly, despite entrusting their life savings to financial institutions, only 43% of customers feel banks care about their long-term financial well-being, according to reports. In today’s increasingly computerized world, client loyalty is more dependent on trust.

With pandemics driving customers to rely on digital channels, banks are under even greater pressure to persuade customers that they can be trusted to conduct increasingly broader and more complex financial transactions.

Previously, the majority of loan applications could only be handled at physical branches, but there is now a growing demand for it to be done online. As a result, we’re seeing a rise in the demand for mobile banking apps and cloud-based solutions.

Emotional connection with customers

Because of the quick rate of technical improvements, banks were intended to serve a crucial societal function that has become somewhat ignored. Only 28% of consumers seeking financial help from a bank, according to the Accenture survey, turn to a bank when they are facing major financial issues.

Turning the tide, in this case, requires ensuring that conversation with a human advisor appears to be an important occurrence. Focusing on developing an emotional connection with customers is crucial for first-line bank personnel. These employees should evolve from being a third-party intermediary between a consumer and a service to becoming a service in and of themselves.

Not blending visibility with transparency

Transparency in banking can take many different forms.

For example, clearly saying how long a given transaction would take and then following through on this promise can be quite helpful to the average client. Being able to demonstrate dependability in the context of these seemingly minor matters can go a long way.

Furthermore, transparent, clearly worded, and basic terms and conditions free of legal language can increase client trust.

According to the 20th Annual Edelman Trust Barometer, the most essential component in increasing client trust in financial services is simply understanding terms and conditions.

Banks must emphasize consumer trust and determine ways to develop more meaningful relationships with their customers. Every transaction and client interaction should be viewed as a chance to earn trust.

Prevent scams

All forms of financial scams have increased in practically every corner of the world in comparison to the previous year. This is unsurprising, given that pandemic-induced anxiety and an overall surge in digital transactions provided a wealth of chances for criminals.

Customers’ trust in banks has dropped as a result of this. To address this problem, banks must reassess their security protocols and ensure that the risks associated with transactions are proportional to the security robustness of the system.

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Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing