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For the  rst time in its  ve-year history, the annual Economist Intelligence Unit survey revealed that keeping up with changing customer behavior and technology is the most important focus for bankers — even more so than regulation. Similar to the way the retail industry had to adapt to customers’ desire to shop online rather than in brick-and-mortar stores, banks and credit unions are feeling the pressure to keep up with digital trends that align with customers’ preferences. There are several areas in particular where banks are incorporating technology in their efforts to improve customer satisfaction.


Go Digital


Smartphones have completely transformed the banking landscape. In 2015, weekly mobile bankers exceeded that of weekly branch bankers for the  rst time, accord- ing to Javelin Strategy. Overall borrower satisfaction ranks consistently higher among small banks and credit unions, but big banks reign supreme in mobile and online satisfaction, according to a study by J.D. Power. But don’t assume that moving all your services to digital is necessarily the best way to increase customer satisfaction. Based on the J.D. Power 2018 U.S. Retail Banking Satisfaction Study, customers that utilized both online banking and branch banking were the most satis ed, while digital-only customers and branch- only customers ranked the lowest satisfaction. While customers may not want to interact with the branch when checking their balance or transferring money but many still desire personal interactions when it comes to handling pressing concerns or seeking advice, research- ing products and fees, and opening new accounts.


Automate the Lending Process A common motivation driving the adoption of technol- ogy throughout customers’ daily lives is their desire to save time and simplify processes. One of the most signi cant pain points for borrowers is the amount of time it takes many institutions to process a loan, offer- ing a major opportunity for optimization by bringing in technology. Over half of bank loan applicants report being most dissatis ed with long wait times for credit decisions and a dif cult application process, according to the 2017 Small Business Credit Survey by the Federal Reserve. To speed up the lending process,  nancial institutions have found that automating the lending


process signi cantly reduces the time spent originating a loan, allowing them to provide potential borrowers with loan decisions in a fraction of the time. The data collection and data entry process are two areas in particular that create bottlenecks and wasted time in the lending process; however these are also two steps that can be accelerated with the implementation of technology. For example,  nancial institutions that utilize a digital loan application can allow applicants to swiftly  ll out an application and submit necessary documents through an online portal submitted instantly upon completion. These applicants can also sign documents electronically using an electronic signature service such as Adobe Sign. Oftentimes, a loan application  lled out by one party requires signatures from multiple people and businesses. The integration of electronic signatures and online loan applications cuts out unnecessary communication, extra trips to the bank and extensive printed applications mak- ing for a quicker, simpler experience.


Technology is also helping automate the process of entering data so that lenders can more quickly provide decisions on loan applications. Some credit risk solu- tions are able to combine borrower-submitted digital documents, such as multiple tax returns, with credit reports and asset account information automatically into a personal  nancial statement for the lender to review — with no data entry whatsoever. The automati- cally built statements make the process easier and more ef cient for both the borrower and the lender. Technology has changed many industries’ strategies and approaches to customer satisfaction, and banking is no exception. No matter the industry, customers are seeking an ef cient, seamless process. Financial industries have a tremendous opportunity to not only tap into technology to improve customer satisfaction and experience but also to greatly reduce time and cost of their processes. 


ABOUT THE AUTHOR


Kylee Wooten is a media rela ons and research specialist at Sageworks, a  nancial informa on company that provides lending, credit risk and por olio risk solu ons to banks and credit unions to help them e ciently grow and improve the borrower experience. Sageworks o ers banks lending, credit risk and por olio risk so ware to


e ciently grow and improve the borrower experience. Visit www.sageworks.com to learn more.


OCTOBER 2018 WWW.CBAK.COM 19


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