Want to deliver outstanding Customer Support in the Banking Industry and keep your customers fiercely loyal? In today’s competitive landscape, simply meeting expectations isn’t enough. You need to exceed them. With over half of customers ready to leave after just one bad experience, providing exceptional service is no longer optional; it’s essential for survival. You want to keep customers, gain deposits, and get referrals.
You’ve come to the right place if you’re responsible for customer service in a bank or financial institution. At NAOS CX, we specialize in helping banks deliver exceptional customer experiences while ensuring security, efficiency, and compliance at every step. This guide will walk you through best practices, security measures, and training strategies for building a support team that meets and exceeds customer expectations.
Let’s dive in and explore how to elevate your banking customer support to the next level.
UNDERSTANDING CUSTOMER EXPECTATIONS IN MODERN BANKING
Banking has dramatically transformed recently, with a clear shift towards digital-first interactions. Preference for mobile banking has gone from 15.1% in 2017 to 48% in 2023.
The decline of traditional brick-and-mortar branches mirrors this trend: in the US alone, over 1,500 branches closed in 2023.
This has also profoundly impacted customer support. With fewer in-person interactions, customers rely heavily on digital channels for help. Banks must now cater to a customer base that expects seamless support across various digital platforms, including mobile apps, websites, and social media.
The demand for instant responses and readily available self-service options has also grown since 72% of customers use mobile apps to connect with their primary bank. They expect immediate answers to their queries and the ability to resolve issues via self-service portals, FAQs, responsive chatbots, and 24/7 support.
Above all else, security and compliance are at the top of customer expectations in banking. Customers expect their sensitive data to be handled with the utmost care. They want assurance that their transactions are secure and that their personal information is protected from unauthorized access.
Unfortunately, the digital age has also brought new threats to banking support. Around 73% of financial institution customers report phishing as a frequent third-party fraud. Traditional threats like check fraud persist, with incidents climbing by 28% due to deepfake and phishing scams.
Regulatory requirements further complicate the task of providing excellent customer support. Regulations like GDPR, PCI DSS, KYC (Know Your Customer), and AML (Anti-Money Laundering) impact every aspect of customer interactions. Banks must ensure their support processes comply with these regulations while providing an efficient customer experience.
While it can be a constant challenge, it’s not impossible — here are a few tips:
- Implement multi-factor authentication for all digital interactions.
- Actively educate customers about common scams and phishing tactics.
- Invest in robust fraud detection systems.
- Be transparent with customers about the security measures implemented and data protection practices.
EXCELLENCE IN ACTION: BEST PRACTICES FOR SECURE AND HIGH-QUALITY SUPPORT
Providing exceptional customer support in the banking industry requires a multifaceted approach. It’s not just about being helpful and responsive — you also need to build trust by prioritizing security and data protection at every touchpoint.
Let’s delve into some best practices that can help banks achieve this delicate balance.
Omnichannel Security
Customers interact with banks through many channels, including phone, chat, email, and mobile apps. Therefore, you must ensure safe and seamless interactions across all these platforms.
Banks are increasingly adopting a zero-trust architecture, a security model that requires authentication for every user, device, and transaction, regardless of location. This “never trust, always verify” approach strengthens your security posture.
The effectiveness of zero trust is clear: 58% of organizations reported their security practices were more effective after implementing this strategy, compared to just 40% before. Plus, it can reduce the cost of a data breach by approximately $1 million.
In a customer support context, this translates to verifying the identity of every customer, even if they are calling from a known number or using a trusted device. This might involve multi-factor authentication, knowledge-based questions, or biometric verification.
Data Protection & Encryption
Protecting customer information is non-negotiable. Customers trust banks with their most sensitive data and expect it to be protected. Approximately 94% of organizations acknowledge that customers would not buy from them if they did not protect data adequately.
Encryption is crucial in securing data both in transit and at rest. Banks must employ strong encryption protocols to protect customer information from unauthorized access.
However, data protection shouldn’t come at the cost of efficiency. Banks need to find a balance between security and usability. Customer support agents should be able to access the information they need to assist customers quickly and effectively while adhering to strict security protocols.
Customer Authentication Best Practices
Finding the right balance between security and convenience is crucial for customer authentication. Robust authentication is essential, but overly complex processes can frustrate customers and lead to negative experiences.
Key Methods for Customer Identity Verification in Banking:
- Document Verification
- Description: Customers provide government-issued identification documents (e.g., passports, driver’s licenses) authenticated for legitimacy.
- Application: Utilized during account opening and significant transactions to comply with Know Your Customer (KYC) regulations.
- Biometric Authentication
- Description: Uses unique biological traits such as fingerprints, facial recognition, or iris scans to verify identity.
- Application: Ensures that the person accessing the account is the legitimate owner.
- Two-factor Authentication (2FA)
- Description: Requires two forms of verification, typically combining something the user knows (password) with something they have (mobile device) or are (biometric trait).
- Application: Commonly implemented for online banking access and transaction confirmations to add an extra layer of security.
- Knowledge-Based Authentication (KBA)
- Description: Involves questions based on personal information that only the genuine customer is expected to know.
- Application: Used as an additional verification step, though its effectiveness can be limited due to data breaches exposing personal information.
- Geolocation Verification
- Description: Assesses the geographic location of a customer’s device during a transaction.
- Application: Flags transactions originating from unusual or high-risk locations for further verification.
The key is to implement authentication methods that are both secure and user-friendly for minimal friction while maximum protection.
Fraud Prevention in Customer Service
Fraud prevention is a constant battle in the banking industry, and fraudsters often target customer service channels. Using artificial intelligence (AI) and training customer support agents to detect and mitigate risks can change the game.
AI-powered systems can analyze customer interactions in real-time, flagging suspicious activity such as unusual transaction requests or changes in account details. Trained agents can also be vigilant and ask clarifying questions to verify the legitimacy of customer requests. Regular training on the latest fraud trends and techniques will equip agents with the skills to identify and prevent fraudulent activity.
TRAINING AGENTS FOR EXCELLENCE: BUILDING A SECURE AND HIGH-PERFORMANCE SUPPORT TEAM
Exceptional customer support doesn’t happen by chance. It’s the result of a well-trained and empowered team of agents who can handle the challenges of the banking industry. Here’s how you can equip your agents with the knowledge and skills they need for better customer support in the banking industry.
Security Awareness & Compliance Training
Customer support agents must stay up-to-date on ever-evolving banking regulations and fraud detection techniques.
Regular security awareness training will inform your agents about the latest threats and vulnerabilities. This training should cover phishing scams, social engineering tactics, and data breach prevention.
Agents should also be thoroughly trained on relevant banking regulations, including GDPR, PCI DSS, KYC, and AML.
Here are interesting resources about the latest fraud trends in the banking sector and the techniques to equip Customer Support agents:
This survey provides a global snapshot of the current scam landscape affecting banks. It highlights frequent frauds and emerging techniques like deepfakes and AI in scams.
The survey also identifies scam targets and the channels through which they occur, which can help customer support agents understand the patterns and demographics involved in different types of fraud.
Experian’s annual report highlights fraud trends impacting consumers, businesses, and the financial services industry. It identifies the increasing volume and new types of attacks, including using Gen AI to create deepfake content and scam websites.
Verafin’s insights into fraud trends and technology offer a forward-looking perspective on the evolving landscape of payment fraud. Their analysis covers instant payment fraud, deepfakes in authorized push payment scams, business email compromise, fraud-as-a-service models, and check fraud.
Verafin also offers a checklist for preparing for the future of fraud prevention, which can be a valuable resource for financial institutions.
Handling Sensitive Information
Customer support agents routinely handle sensitive financial data, making it essential to teach them best practices for secure data handling. Training should cover data encryption, access controls, and safe storage procedures.
Agents should also understand the importance of protecting customer privacy and confidentiality and be trained to handle sensitive information securely and compliantly. This includes knowing how to verify customer identities, process transactions securely, and escalate any suspicious activity.
Soft Skills & Empathy
Technical knowledge is essential, but soft skills are equally crucial in banking customer service. Clear communication, patience, and professionalism are vital in building rapport with customers and resolving their issues effectively.
69% of customers who plan to leave their bank cite poor service rather than poor products. Customers with a service-based problem are four times more likely to switch to a competitor.
Soft skills are crucial to retaining these customers. Agents should be trained to listen actively, empathize with customers, and communicate clearly and concisely. They should also be taught how to handle difficult or stressful situations with professionalism and composure.
Role-Playing & Real-World Scenarios
Simulated training using role-playing and real-world scenarios can be invaluable in preparing agents for high-stress situations. By practicing handling various customer interactions, including complex inquiries and challenging complaints, agents can develop the confidence and skills they need to perform effectively on the job.
Role-playing allows agents to practice their communication and problem-solving skills in a safe environment. They can receive feedback and learn from their mistakes. This type of training can be beneficial in preparing agents for handling sensitive or escalated customer issues.
Monitoring & Performance Reviews
Continuous monitoring and performance reviews are a great way to improve customer support service:
- Quality assurance programs can help identify areas where agents excel and need additional training or support.
- Key Performance Indicators (KPIs) can be used to track agent performance and identify trends.
- Regular feedback loops, including customer surveys and agent feedback sessions, can provide valuable insights into the customer experience and help identify areas for improvement.
Conclusion
In the hyper-competitive banking world, exceptional customer support isn’t just a differentiator — it’s the price of admission. With this guide, banks can build a customer support engine that drives loyalty and fuels growth. However, building and maintaining this level of excellence requires a lot of resources and expertise.
If you’re ready to elevate your customer experience, contact NAOS Solutions today for expert outsourced customer support that’s secure and compliant. We’ll handle the heavy lifting so you can focus on what you do best: banking.
