The Ultimate Guide to Exceptional Customer Service in Indian Banking

The Indian Banking sector has witnessed several waves of change in the past few decades. We have gone from mere brick-and-mortar banks to well-diversified banking channels that cater to a much larger audience than ever before. 

An era marked by lengthy queues, tedious paperwork, and limited operational hours has slowly transitioned into Internet banking, ATMs, and digital wallets that can be operated anytime, anywhere. 

Understanding this evolution is essential in order to appreciate how far customer service has come in the banking sector and how we can improve it further.

The new-age customer is more tech-savvy and well-versed in banking but still very impatient when it comes to customer service. 

Their expectations have changed, and with the onset of Digital Bharat, they no longer wait around for banks to improve their services; they simply switch. This rising tower of customer expectations requires banks to focus on the multiple hoops that customers need to jump through in order to complete basic banking functions like opening a bank account, activating Internet banking, completing KYC, etc. 

Looking to enhance your customer support? Check out our guide on Call Center in Bangalore.

What Constitutes “Good Customer Service” in Banking?

Customer service can mean different things to different people, but it boils down to a few essentials everywhere: efficiency, accessibility, and personalization. 

In today’s competitive landscape, you can’t rely on a one-size-fits-all approach. Customers today expect you to go above and beyond to fulfill their banking needs because they have trusted you to safeguard their financial assets. 

So, it becomes vital that you employ a holistic approach when redefining your customer service approach. Following are a few critical components that you would want to consider while establishing your own customer service essentials:

Personalization

Tailor-made services in the banking industry aren’t new, but they need to be done in a way that doesn’t feel invasive to the customer. Remember to send product recommendations, financial advice, and customized content to customers only when they have opted for it. Personalization is a positive driving force for good customer service, but only until it’s not pushy.

Efficiency and Speed

People no longer want to stand in long queues at the banks in hopes of getting their minor issues resolved. In fact, the new age customers prefer not to disrupt their busy routines by traveling to their bank branches for minor inconveniences; they want quick and accurate solutions on demand. Implementing efficient processes and integrating technology within this life cycle is necessary to match the changing demands 

Accessibility

An omnichannel approach across various customer journey touchpoints is becoming essential since more people search for flexible banking solutions. Different people across India, have different needs when it comes to bank operations. Some prefer in-person banking, while othere prefer reach outs via digital channels like email, IVR, interactive chatbots, etc. This approach ensures consistency and convenience for all demographics.

Proactive Support

Anticipating and addressing critical issues before they spiral out of control is a true sign of good customer service. Proactive support includes monitoring customer activities, providing timely alerts, offering solutions before problems arise, and enhancing customer satisfaction and trust.

Data Security

Banks are among the most targeted sites for cybercrimes and fraud. Safeguarding customer data and ensuring that your enterprise has robust data security builds trust and reliability among customers. 

Importance of Customer Service in Banking

Exceptional customer service in banking is not just a value-add; it is imperative for business success. The importance of customer service in banking cannot be overstated, as it influences every aspect of a bank's operations and its relationship with customers. Here’s why:

1. Reduces customer churn: In simple terms, customer churn is the phenomenon when customers terminate their relationship with your bank. Now, this could be due to a number of factors but a focus on excellent customer service can significantly reduce churn, retaining valuable customers and enhancing their lifetime value. By addressing customer needs promptly, banks can boost loyalty and reduce the likelihood of customers switching to competitors.

2. Combating cybercrime: With the rise of online fraud, customers are increasingly concerned about data security, and rightly so. According to an RBI report, online fraud cases have risen by 708% in the last two years, with the amount involved increasing by 145%. Banks must invest in advanced security measures to combat cybercrime to reassure customers about the safety of their transactions. Regular PSAs could also be a good outreach strategy to educate people on how to identify fraudulent bank messages and calls.

3. Builds brand reputation: Good customer service builds a strong brand reputation and identity, cultivating customer loyalty and positive word-of-mouth. Always remember: satisfied customers are more likely to recommend the bank to others, driving new customer acquisition and enhancing the bank's market position. You are always one bad customer service experience away from going viral for the wrong reasons; address all your customers diligently.
4. An edge over competitors: Banks, at their core, provide very similar services, and hence, one of the few differentiators in the market is customer service experience. You will often hear customers say that they switched banks because the issue resolution time at their previous bank was too long, which might seem like an easy fix, but something banks often miss the mark on. In a highly competitive market, exceptional service can differentiate a bank from its rivals, particularly in areas like Internet banking and card usage support.
5. Address a diverse audience: There are a multitude of reasons why you might visit a bank. Your mother might need to activate your Internet banking and open a new Demat account, or you might have questions about opening a new bank account for your first job. All of these concerns require customer service agents at the bank to be well-versed in multiple use cases when it comes to diverse and varied banking needs. At SquadStack, we factor that in from the very beginning when training our customer service agents to provide impeccable customer experience for your business.

10 Winning Ways to Make Banking Customer Service Better

Improving Indian banking services isn’t a sprint; it’s a marathon. Businesses need to understand the full customer journey before they can even attempt to solve their problems. This requires dedicated efforts and an even more dedicated customer service team. We bring you 10 proven tips on how you can begin to tackle this pertinent issue and get ahead of the competition.

1. Integrate diverse product offerings with the life events of a customer: Efficiently leverage real-time customer data to offer personalized loan/investment options during major milestones in life like marriage, buying a home, and higher education. By preempting customer patterns, you acquire an edge over competitors who might be looking to poach your existing customers. This approach also helps address the immediate needs of the customer while still building long-lasting relationships based on trust and reliability.
2. Survey and implement customer feedback: Regularly surveying customers and implementing their feedback can help banks improve their services. Listening to customer suggestions and acting on them demonstrates that the bank values its customers' opinions.
3. A customer-centric approach is paramount: Start by segmenting your target audience based on demographics and financial needs. This provides a dual advantage: identifying the demographic most satisfied with your service and pinpointing those less likely to choose your bank. This insight allows you to understand different customer segments better and tailor your approach to meet their needs.
4. Offer Real-Time Help: In the digital age, customers are increasingly impatient and expect instant solutions. Providing real-time help through online chat, chatbots, and responsive customer support can enhance customer satisfaction. The longer you make customers wait for a solution, the more likely they are to grow impatient and switch banks for better services.
5. Create an Omnichannel Experience: An omnichannel experience ensures that customers can seamlessly interact with the bank across various channels, whether it's online, via mobile, or in-branch. Consistent service across all channels is crucial for a positive customer experience. A lot of established banks still struggle to maintain a reliable telecalling customer service team. Here’s where outsourcing this important task to a reliable industry leader like SquadStack could prove beneficial and help elevate the customer experience.

6. Utilize Technology and AI to Anticipate Customer Needs: Leveraging technology and AI can help banks predict customer needs and offer proactive solutions. For instance, many AI-driven chatbots work 24/7 to provide seamless customer service. Machine learning algorithms can analyze customer data to deliver personalized services and detect unusual transactions, enhancing security measures. AI-driven credit scoring models provide more accurate assessments of creditworthiness. Overall, AI is revolutionizing the banking sector by streamlining operations, minimizing risks, and offering tailored services to customers. 
7. Enhance training in interpersonal skills: Customer support agents should be trained not only in technical skills but also in interpersonal skills. Empathy, patience, and effective communication are key to resolving customer issues and building rapport. We understand that this can be a tedious task that not all banks can devote themselves to. This is where SquadStack can step in! We scout the best sales agents in the banking industry, vet and train them rigorously, and invest heavily in enhancing their industry knowledge and communication skills via our regular training programs.

8. Be receptive to change and evolving customer needs: The banking industry is constantly evolving, and so are customer needs. Banks must stay agile and be willing to adapt to changes in customer expectations and market trends. A very good example of this is Kotak 811’s story. Did you know that Kotak 811 was a byproduct of demonetization? Kotak identified a gap in the Indian banking sector during demonetization, as a large number of Indians were still unbanked. They quickly rolled out our Kotak 811, where they offered a completely digital and paperless account opening solution through their app, making banking much more accessible to the average Indian citizen. 
9. A 360° view of the customer journey is essential: A comprehensive view enables banks to understand customer behavior and preferences. Understanding all interactions and touchpoints allows for a holistic approach to customer service and better equips telesales agents to handle customers.‍
10. The right mix of AI and human touch: While AI can handle routine inquiries and transactions efficiently, human agents are essential for complex issues that require empathy and nuanced understanding. Striking the right balance between AI and human touch is crucial, as you don’t want the customer to feel alienated from the process. Banking, being a very personal experience, will always require a human element, and hence, stellar customer service agents will always be needed.

Also read: What is Cold Calling?

Examples Of Excellent Customer Service In The Indian BFSI Sector 

Upstox

Upstox, one of India’s leading investment platforms, has significantly improved its customer service experience in the BFSI sector by partnering with SquadStack. Through a combination of fully managed sales services, on-demand sales experts, and AI-driven outreach, SquadStack has enabled Upstox to efficiently onboard and activate new users, boosting their activation rate by 40%. This strategic collaboration allowed Upstox to overcome challenges in customer education and complex onboarding processes while ensuring rapid adaptation to regulatory changes. The partnership has not only streamlined customer support but also freed Upstox’s internal resources to focus on high-leverage tasks, thus driving overall growth and enhancing customer satisfaction.

Choice

SquadStack's fully managed network of sales experts and robust tech stack has enabled Choice India to successfully transition to a digital model, achieving a rapid month-on-month improvement in conversion rates and reducing customer acquisition costs by 70%. The partnership has provided Choice India with the flexibility to scale campaigns efficiently, implement a success-based pricing model, and utilize an advanced analytics dashboard for better campaign management. This strategic collaboration has enabled Choice India to drive exponential growth and maintain cost-effective operations while delivering superior customer service.

MoneyView

MoneyView simplified internal team processes and accelerated business growth by deploying SquadStack's fully controlled telecalling stack. The partnership allowed MoneyView to raise loan application submission rates by 25-40%, improve lead connectivity by 154%, and preserve enterprise-level data security. MoneyView used SquadStack's data-driven insights and comprehensive dashboard to understand client pain points better, adjust marketing strategies, and assure campaign visibility and transparency. This strategic alliance has helped MoneyView's scalability and operating efficiency in a highly regulated market.

Concluding Remarks

In conclusion, answering the question of ‘How to improve customer service in the Banking Industry’ requires a deep understanding of customer needs, the integration of advanced technology, and a commitment to continuous improvement. By implementing the strategies outlined in this guide, banks can revolutionize their customer service and secure a bright future in the ever-evolving digital landscape.

But if all of the above seems a little too daunting, we have a shortcut for you!

Partnering with SquadStack to outsource services like account activation, eKYC, personal loans, and welcome calls can be one of the fastest ways to improve customer experience. Contact us today to learn how your business can tap into the power of modern AI-powered telesales solutions with SquadStack!