In a highly competitive environment where products are often complex, how a financial institution interacts with its clients is crucial to ensuring satisfaction and building loyalty and a strong market reputation. Customer service has become a differentiator as consumer expectations rise for fast, efficient, and personalized service. This article explores the challenges and best practices for improving customer service in banks and insurance companies, focusing on strategies to optimize the customer experience and reduce operational costs.

The importance of customer service in the financial sector

In the financial sector, where services often involve decisions that significantly impact clients’ lives, customer service plays a crucial role. The complexity of financial products, such as loans, investments, and insurance, requires accessible and effective support. High-quality customer service can help customers better understand the services, make more informed decisions, and quickly resolve any issues or questions that may arise.

Clients entrust financial institutions not only with their assets but also with sensitive information. High-quality customer service that effectively and transparently addresses customers’ concerns and needs reinforces this trust. In addition, attentive and personalized service contributes to building a long-term relationship in which clients feel valued and understood. This foundation of trust and loyalty is essential for the continued success of financial institutions, fostering a positive reputation and sustainable growth.

Current challenges in the financial sector customer service

The financial sector faces new customer service challenges driven by rapidly changing consumer expectations, technological advancements, and the increasing complexity of financial products and services. Institutions must continuously adapt to stay competitive, offering solutions that meet the demands of an increasingly dynamic, customer-experience-oriented market.

Growing demand for quick responses and effective solutions

Customers expect fast responses and practical solutions to their issues in an increasingly digital world. The fast pace of modern life, coupled with the availability of instant communication technologies, has raised customer expectations regarding the speed and efficiency of service. In the financial sector, where issues like transactions, balance inquiries, and account or policy problems are critical, providing quick, accurate support is essential for customer satisfaction and loyalty.

Complexity of financial products and customer expectations

Financial products and services are among the most complex on the market, ranging from checking and savings accounts to investment and insurance products. This complexity can be a barrier for customers, who often need guidance to understand each product’s terms, conditions, and benefits. Furthermore, modern customers demand clarity, transparency, personalization, and solutions tailored to their specific needs. Managing these expectations requires a high level of expertise and a customer-centric approach.

Integration of digital and in-person channels

The digital transformation has introduced a variety of communication channels, from mobile apps and chatbots to call centers and physical branches. One of the biggest challenges for financial institutions is integrating these channels seamlessly to deliver a cohesive omnichannel experience. Customers expect to begin an interaction on a digital channel and, if needed, continue it in person without losing continuity or repeating information. Harmonizing these channels while maintaining consistent, high-quality service is complex but crucial for a satisfactory and efficient customer experience.

Approach to improving customer service

Optimizing customer service in the financial sector requires a structured approach focused on addressing root causes and continuously improving the customer experience. This involves understanding the primary reasons for customer contact and tackling their underlying causes to provide a smoother, more proactive experience. The solutions include three essential pillars of improvement: eliminating root causes of common issues to minimize the need for customer assistance, empowering teams to resolve issues at the first point of contact, and implementing the Shift Left concept, which transitions support to lower-cost channels that still deliver convenience and quality, aligning organizational resources with actual customer needs.

Eliminating root causes

Eliminating the root causes of customer contacts is a proactive approach to identifying and resolving underlying issues that generate recurring questions or difficulties. By analyzing contact reasons, financial institutions can detect patterns and implement solutions that prevent customers from needing assistance for the same issues in the future. This strategy not only reduces contact volume but also enhances customer satisfaction by delivering a seamless experience free from unnecessary setbacks.

First Contact Resolution

First Contact Resolution (FCR) is essential for effective and efficient customer service. This approach empowers customer service teams with the tools, information, and autonomy needed to resolve issues immediately without the need for transfers or additional contacts. Continuously improving FCR streamlines the process, reduces customer wait times, and boosts confidence and satisfaction by providing a quick, efficient resolution experience.

Implementing the Shift Left concept

The Shift Left concept involves moving customers to support channels with lower operational costs that still provide high service and convenience. This strategy encourages a shift from in-person interactions to call centers, chatbots, FAQs, and other automated digital channels that can quickly and efficiently resolve simpler issues. Shift Left enables customers to resolve straightforward questions independently and allows human support teams to focus on more complex, high-value matters.

An essential extension of this strategy is the use of co-browsing. This tool helps customers transition to digital channels by allowing support service agents to navigate the website or digital platform alongside the customer in real time, providing direct visual assistance. With co-browsing, customers receive more personalized, hands-on support in digital channels, eliminating the need for in-person contact and ensuring fast resolution for more technical or complex problems. This approach builds customer confidence in digital channels by making them feel closely supported, encouraging a smoother adoption of this type of digital interaction.

Shift Left and co-browsing allow banks and insurance companies to reduce costs while significantly enhancing the digital customer experience.

Figure 1 – Example of Shift Left approach for synchronous channels

Benefits of improving customer service processes

Continuous improvement of customer service processes offers a range of strategic benefits for financial institutions, contributing to more efficient, agile, and customer-focused service. Key benefits of this approach include:

Reduction of operational costs

By shifting support to lower-cost channels, automating simple interactions, and reducing the volume of customer contacts, financial institutions can lower their service expenses while maintaining a high level of customer convenience.

Increased operational efficiency

Eliminating root causes and focusing on First Contact Resolution (FCR) enables customer service teams to concentrate on more complex, high-value interactions, reducing waiting times and the number of repeated contacts. This results in a more agile and effective operation.

Improved customer satisfaction and experience

With streamlined processes that require less support, customers enjoy faster, more personalized, and accessible service experiences. The ability to resolve issues independently on the first contact increases customer satisfaction.

Strengthened customer loyalty

Customers who are satisfied with their service experience are more likely to maintain a long-term relationship with the institution and recommend it to others, enhancing its market reputation and fostering sustainable growth of its customer base.

Figure 2 – Advantages of Improving Customer Service Processes

Improving customer service processes transforms service into a true competitive advantage, allowing financial institutions to deliver a service aligned with customer needs and market trends while increasing efficiency and reducing costs.

Steps to improve customer service

Achieving excellent customer service in the financial sector requires a structured, strategic approach, with steps that help identify needs, develop effective solutions, and monitor performance.

Collecting and analyzing reasons for contact

The first step in improving customer service is understanding why customers seek assistance and identifying contact patterns across each channel (in-person, phone, digital). Pareto charts are created to prioritize the different reasons for contact by channel. This detailed analysis allows the organization to identify recurring contact drivers and specific improvement opportunities for each channel. With this information, it becomes possible to prioritize areas that need intervention and define the most appropriate solutions for each type of interaction.

Designing solutions

To effectively address the identified reasons for contact, solution design is structured around three main areas:

• Contact reduction: Analyze the root causes of frequent contacts using structured problem-solving methodologies and implement measures to eliminate or minimize them. This provides a smoother experience for the customer and reduces the need for assistance.
• Agility in resolution: Focus on improving first contact resolution by ensuring teams have the necessary tools, information, and autonomy to resolve issues on the first interaction. This increases customer satisfaction and improves process efficiency.
• Transition to more efficient channels: Apply the Shift Left concept to encourage customers to transition to more efficient and higher-service channels, such as digital and self-service options like FAQs and chatbots, which provide quick, accessible support while lowering operational costs and enhancing customer convenience.

A detailed action plan is defined, specifying the measures to be implemented, assigning responsibilities, and setting deadlines to ensure an effective process for improving customer service.

Implementing improvement initiatives and monitoring

The implementation phase involves executing the action plan defined previously and establishing a continuous monitoring system to track the plan’s progress and customer service performance. It is essential to regularly monitor indicators such as FCR, customer satisfaction rate, and contact volume by channel, enabling quick adjustments and further improvements. Monitoring ensures that implemented solutions deliver the expected results and that teams are prepared to adapt to new needs, providing customer service continuously evolves and stays aligned with market expectations.

Challenges in improving customer service

Improving customer service is a process that brings significant benefits, but it also presents challenges that need to be managed to ensure an effective transition and high-quality service. Overcoming resistance to change and ensuring continuity and quality of service are critical factors for the success of these initiatives.

Overcoming resistance to change

Resistance to change is a common challenge in improvement initiatives, impacting both internal teams and customers. When teams adapt to new processes and technologies, it can often lead to uncertainty and fear. At the same time, for customers, service changes can be perceived as a barrier to the experience they are used to. It’s essential to promote clear communication and involve teams from the start, providing training and support to help them feel confident using the new solutions. For customers, it’s essential to ensure a smooth transition with clear instructions and accessible support channels to maintain their trust and encourage the adoption of the new service model.

Ensuring continuity and quality of service

When implementing service improvements, it’s crucial to maintain continuity and quality to avoid disruptions and provide a consistent experience for customers. Any process changes should be carefully planned to minimize impact and avoid periods of unavailability or decline in service quality. Implementing alternative solutions and contingency plans can help ensure that service standards remain high during the transition period and that customers continue to have access to the support they need.

The future of customer service in the financial sector

Customer service in banking and insurance is evolving rapidly, driven by digital transformation, new consumer expectations, and the need for operational efficiency. The future of customer service will be characterized by the integration of advanced technologies, an increasing focus on personalization, and a strategic balance between automation and human service.

Financial institutions that adopt this integrated approach will be better prepared to face challenges and stand out in a competitive market, ensuring a positive customer experience and optimized operational costs.

Still have some questions about customer service in the financial sector?

How can customer satisfaction be measured and areas for improvement identified?

Customer satisfaction can be measured using tools like Net Promoter Score (NPS), Customer Satisfaction Score (CSAT), First Contact Resolution (FCR), and Right First Time (RFT). Analyzing feedback, monitoring first-contact resolution rates, and conducting regular surveys help identify areas for improvement and adjust service strategies accordingly.

What is co-browsing?

Co-browsing enables a support agent to navigate a website or app alongside the customer, providing visual assistance to solve real-time issues. This approach facilitates the resolution of complex problems and offers a more personalized and efficient service experience, helping customers transition smoothly to new channels.

What is the Shift Left concept in customer service?

Shift Left involves shifting customer support to more efficient, lower-cost channels, such as chatbots and FAQs, allowing customers to resolve simple issues independently. This frees employees to focus on more complex interactions, increasing efficiency and reducing operational costs.

What are self-care channels in customer service?

Self-care channels allow customers to solve problems and obtain information without direct interaction with an agent. Examples include FAQs, chatbots, and self-service portals. These channels offer convenience and accessibility, reducing dependence on traditional customer service.