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Poor Customer Experience Costs Financial Institutions $10 Billion Per Year

Fenergo, provider of digital Client Lifecycle Management (CLM) software solutions for financial institutions, has announced findings from the company’s industry trends report series, which found that “poor customer experience” is costing financial institutions $10 billion in revenue per year.

The report, the first of a three-part series, provides insights from global decision makers within large scale financial institutions towards customer experience within CLM, the end–to–end process management of a client relationship. Touching upon the need to improve the customer experience and obtain an enterprise-wide view of client and counterparty data, the report also highlights how financial organisations are being driven to digitally transform their entire customer journey, from the very first touchpoint to day-to-day trading.

Highlights from the industry trends report include:

  • One in three financial institutions have lost customers due to inefficient or slow onboarding (36%)
  • Improving data and document capture is ranked the highest critical business issue and pain point across the board (31%), as compared to complying with rising number of regulatory requirements (19%) and improving data management (18%)
  • 81% believe poor data management lengthens onboarding and negatively affects customer experience
  • 84% believe the client experience during the onboarding process impacts the lifetime value of the client
  • When it comes to the types of banks that have lost a client or prospect due to inefficient onboarding processes, commercial banking leads the charge (42%) followed by business banking (37%), investment banking (37%) and corporate banking (30%).

“This report clearly shows the impact that client onboarding inefficiencies and a hesitancy to digitalise processes have on the customer experience and how it directly effects financial institutions’ bottom line. With challenger banks disrupting the customer experience, the efficient handling of client data through digital transformation must be achieved by organisations if they are to gain a competitive advantage in today’s digital-first world,” said Marc Murphy, CEO, Fenergo

“2019 will be the year when the financial industry will be challenged to digitalise the entire customer journey end-to-end,” said Greg Watson, Global Head of Sales, Fenergo.

“Medium-to-large scale businesses want to be onboarded in days not weeks, while retail consumers expect to open accounts in minutes not hours. Combine this with the global economic environment, it’s never been more important for financial institutions to deliver value to their customers and differentiate themselves from competitors. The adoption of a digital CLM solution will be imperative in achieving this.” 

The three related research reports are based on the findings from a global proprietary market survey commissioned by Fenergo. The survey engaged with 250 C-suite executives across commercial, business, investment/institutional and corporate banking institutions. Respondents were based in financial institutions of varying sizes, from 0-500 employees, to those boasting 10,000+ employees, with their primary location of operation spanning UK & Europe, Middle East and North Africa, Asia Pacific and North America.

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