How To Build Customer Loyalty in Digital Banking - BCCS Cluster - Innovate. Develop. Integrate

12/23/2020 How To Build Customer Loyalty in Digital Banking? - BCCS Cluster: Innovate. Develop.
Integrate
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How To Build Customer

Loyalty in Digital Banking?
December 12, 2019
Illustration by Alex Krugli
Retail banks have been offering different reward programs for many years. However,
things have changed. Customers don’t recognize these programs as appropriate loyalty
anymore. Banks should challenge the hegemony of the traditional system and nd new

ways to build customer loyalty.
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12/23/2020 How To Build Customer Loyalty in Digital Banking? - BCCS Cluster: Innovate. Develop. Integrate
With the digital disruption in nancial services making it easy for customers to ee 
elsewhere, and with ntech startups hot on the heels of nancial institutions, banks that
don’t invest in loyalty will lose the game.
In this article, we will share our expert insights and tips that will help you get a
comprehensive understanding of what boosts modern banking customer loyalty.
Go digital to drive loyalty

Small banks are often afraid of being out-invested by big national banks. However, even
regional banks can win the competition if they position themselves as ntech innovators.
At the age of digital transformation, customers feel more loyal to banks that digitize
nancial services since it helps them save time and effort in many cases. Virtual wallets,
digital deposits, mobile banking applications, and other innovations can signi cantly
improve the customer experience.
Illustration by Andrew McKay
An excellent example of progressive banking digitization is Frost Bank, based in Texas. In

2000, it became the rst regional bank that launched online banking. It offered its
customers options that helped considerably improve banking experience and increase
loyalty.
Frost Bank provided digital deposits, suggested customers joining Zell virtual wallet
network, and allowed people freezing their debit cards by merely replying to text
messages. All these digital innovations helped Frost Bank lead the competition among
American banks on Net Promoter Score.
7 Practices to increase loyalty in


digital banking Services Fintech About News Contact Menu

To increase customer loyalty, banks started creating their own custom banking software
aimed to improve customer experience. Here we will consider some of the digital
banking tips and solutions.
1. Use mobile wallets for loyalty card management

The possibility to manage loyalty programs directly from a digital wallet is a great feature
that can signi cantly simplify user experience and increase loyalty even more. Capital
One has become one of the rst banks that have started incorporating this innovation in
its system, managing customer loyalty programs through a mobile wallet.
Another excellent example is a forward-thinking Singaporean bank, DBS Bank Singapore.

Its mobile wallet, DBS PayLah!, is the fastest-growing digital wallet with more than
785,000 users and 15,000 P2P transactions per day. One of its methods to boost
customer loyalty is the possibility to open a new deposit account online as well as
transfer money using a QR code scan in real-time.
Animation by Johny Vino
2. Personalize digital banking experience

A great instance of the banking experience personalization is an innovation provided by
S&T Bank. This nancial institution has created the My Reward program for its
customers who often use debit cards. The system offers personalized reward cards
designed according to particular online shopping preferences of users.
My Reward program shows the user’s most favorite stores with a full range of in-store
and online offers and discounts. This approach to user loyalty takes into consideration
the customer’s tastes and preferences, granting even more chances for continuous
interaction with a bank and increasing customer retention. 
3. Attract and retain a younger audience, Generation Z 
The future is now dictated by a younger generation of tech-savvy customers –

Generation Z. Regardless of the industry,
Services a brand will
Fintech lose outNews
About on the game if it won’tMenu
Contact
adjust its traditional system to innovations that satisfy the needs of Generation Z. The
nancial sector is not an exception.
To mitigate the risk of losing these up-growing customers, Zions Bank has created the
Pays for A’s program to reward students who have been particularly diligent in their
studies and support education. The system is also aimed at student engagement and
motivation in using more nancial services in the future.
The Pays for A’s program lets students earn one dollar for each A on a student report
card that is deposited right to a deposit account at this bank. Furthermore, Zions Bank
has organized a lottery for students. It gives a chance to each participant to earn a bonus
of $100 or even a scholarship at a size of $1000. It sounds like an awesome opportunity
for students and can considerably drive the loyalty of this demographic group.
Besides, this loyalty program helps Zions Bank collect data about these students and
build a new target audience for their future marketing campaigns.
Animation by Latham Arnott
4. Incorporate a banking CRM system

CRM systems enable banks to run smart and highly-personalized reward programs
based on the e cient segmentation of customers. CRMs allow keeping a whole
customer database in one place and easily manage contacts of different customer
groups.
A banking CRM helps make precise target audience segmentation according to income
and demographical data, and even customer lifestyles and the buyer’s behavioral
patterns. With a needed set of data in hand, banks can identify and target the most
pro table customers. It also helps determine ine cient loyalty programs and stop them

if needed.

5. Provide the omnichannel view of loyalty programs
Customers will like it if you provide the omnichannel view of their digital banking
Services
experiences. Let them track Fintech
their reward points on About News fromContact
various devices, Menu
mobile phones
to tablets and desktop computers. A great idea is also to allow users to set up automatic
redemption toward deposit accounts, credit lines, or to purchase speci c merchants’ gift
cards.
6. Gamify loyalty programs

Gami cation is often used in mobile apps and websites as a tool for customer
engagement and loyalty. By applying gami cation elements in customer loyalty
programs, you can signi cantly boost the popularity of these programs among your
target audience. Imagine, a cute and funny pop-up message congratulating users about
receiving bonuses for keeping a desirable threshold money balance for a particular
period.
7. Use digital customer onboarding

Usually, an onboarding process ends with a few interactions with customers aimed to
gather their information and ll out a loan application. However, it can be much more if to
take a creative approach to it. Customer onboarding is an excellent opportunity to show
customers that a bank cares about them. You can create a feature of online assistance in
your mobile banking app that helps users start using new nancial products and
services.
To make an onboarding process smoother, you can follow the next tips:
1. pay particular attention to creating an intuitive navigation

2. better not to redirect customers to physical channels, develop a mobile or web
experience that can solve all customer problems online 
3. build a trustful online identity veri cation
4. enable auto ll to avoid answering customers the same questions 
5. provide fast access to the account or product after onboarding is complete.

To Wrap It Up
Hopefully, these practices will help you challenge patterns of traditional banking systems
and incorporate innovations that will engage your customers. To stay competitive on the
market today, you need to adjust all the company’s processes to the requirements of the
new digital transformation era. Find here the seven best tips and practices that will help
you change the face of your nancial institution and build strong customer loyalty.
Want to know more about BCCS, or have an interesting idea? Contact Us

https://bccs.tech/#contact
Article source: https://s-pro.io/blog/how-to-build-customer-loyalty-in-digital-banking
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