What are the current needs of corporate banking customers? To date, they still demand a fully trusted manager, as well as products and services that they can rely on. services for your financing and transaction needs. But now they want more. They want the relationship with their bank to be simpler and more direct, they want to do more transactions digitally.
Reinventing the customer experience model is already well underway in retail banking. Corporate banking, however, has lagged behind in this process. There are several reasons for this: the high complexity of customers and products, and the low level of standardisation in products and services. In addition, the cost of making mistakes can be very high, either because of regulatory non-compliance or because of the impact on the bad loan business.
In this scenario, how should corporate banking address the need to reinvent its customer relationship model? It should approach it more in terms of customer experience than in terms of product. And does corporate banking know what the real needs of the treasurer and CFO are, in order to design an optimal customer experience for them?
In corporate banking, around 30 different customer experience models can be identified. And so, when implementing the necessary changes to implement this range of new relationship models, changes to both internal processes and systems are introduced in practice.
When corporate banking has a complete vision of what its customer experience model should be in the future, it will have to prioritise. Because it will have to decide which customer experience model is best suited to the digital transformation processes, and which, therefore, can be supported by the entire organisation.
Multidisciplinary tools
The implementation of the new customer experience should be agile, and should be executed by multidisciplinary teams and tools: both customer relationship managers and specialists in product, data and business intelligence, and technology. Credit risk managers and analysts should also be involved, because it is an activity contemplated in the internal processes associated with the implementation of the new relationship model. In some of these processes, for instance in the onboarding (reception model for new customers), it is critical that the new model conforms to regulatory requirements.
To achieve sufficient visibility in organisations about the new customer experience model, achieving tangible and rapid results is vital. Corporate banking institutions, therefore, need to ensure that this new relationship model is one of the pillars in the development of digital transformation processes.
Finally, if corporate banking institutions want to meet the challenge of implementing a new customer experience, they must have the opinion of a prior selection of their main customers. This is to ensure that, going forward, the entire customer base appreciates the benefits and effectiveness of the new relationship model adopted by their institution.
Access the Boston Consulting Group full report
By Ole Bendik Heggtveit
Principal at Boston Consulting Group and digital wholesale banking expert