Tuesday, 4 October 2016
Open banking – an opportunity for CX researchers.
What is ‘open banking’?
Following the Competition and Markets Authority’s (CMA) retail banking market investigation, the FCA (the regulator) announced on 9 August 2016, that by early 2018, all UK banks are expected to have implemented ‘Open Banking’.
“Open Banking will enable personal customers and small businesses to share their data securely with other banks and with third parties, enabling them to manage their accounts with multiple providers through a single digital ‘app’, to take more control of their funds (for example to avoid overdraft charges and manage cashflow) and to compare products on the basis of their own requirements.”
To tackle these problems, the CMA is implementing a wide-reaching package of reforms to benefit personal and small business customers, including requiring banks to:
- implement Open Banking by early 2018, to accelerate technological change in the UK retail banking sector.
- publish trustworthy and objective information on quality of service on their websites and in branches, so that customers can see how their own bank shapes up. Whether a personal customer or small business is willing to recommend their bank to friends, family and colleagues will be a core measure, which banks will need to publish and make available through Open Banking, as well as a range of other quality measures.
- send out suitable periodic and event-based ‘prompts’ such as on the closure of a local branch or an increase in charges, to remind their customers to review whether they are getting the best value and switch banks if not.
The opportunity for UK banking customer experience professionals
These timescales and mandatory requirements make the remedies a critical factor for banking developments. This means that banks should be investing time and resources into meeting them. That’s good news for CX professionals, especially those using mobile surveys as part of their research. Here’s why:
- Firstly, as banks must publish objective, service quality ratings, they may need to collect more data. That means they need a way to do this easily, efficiently and ideally at the point of specific interactions.
- Mobile surveys are ideal for high volume banking programmes, as they let customers reply at their own convenience to an SMS survey or a mobile web survey. As a result, many respond within 2 hours.
- Secondly, as mobile banking is a key part of the CMA remedies (via the introduction of the single digital app), it makes sense to collect customer feedback on actions taken using mobile apps, such as making payments and checking balances.
- App developers can extend their customer feedback mechanisms to be so much more than basic reviews and simple ‘reply to’ email addresses or contact web forms. In-app surveys are a great way to trigger feedback. You can base them on geolocation (such as, proximity to a local branch); check satisfaction levels following specific transactions, or even just schedule general survey invitations or reminder notifications using the app.
- Finally, as deadlines for implementation are short and clearly laid out. This means banks need to act quickly but responsibly, and may well look to CX professionals for advice.
If you’re looking to help support your clients with open banking, why not extend the CX channels by using mobile at the same time, to create more opportunities to collect objective feedback, in-the-moment?