Over the past decade, the average individual’s use of technology has progressed leaps and bounds. Customers have become exponentially more tech-savvy in their personal lives; a recent study shows that smartphone penetration has risen from less than 30% in 2012 to over 60% in the UK alone. Whether on a mobile phone or a tablet, apps and tools have become intrinsic to daily life. Private banks are now learning that their services need to be aligned with this trend to meet customer expectations.
Traditionally, the relationship between banks and their customers has been underpinned by face-to-face contact and the time spent by each adviser with their client. However, new technology creates opportunities to satisfy time-poor high net worth investors who place less emphasis on personal contact and more on timely and effective communication.
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Technological innovation therefore has a vital role to play in private banking, in potentially raising the efficiency of account management while also enhancing client/adviser relationships. At CaixaBank Private Banking, we believe private banks that fail to integrate this into their service model will ultimately lose future clients. Video calls, for example, are one medium that has developed as a means of connecting managers with busy customers – a way of bringing the adviser to the client and increasing one-on-one contact.
Equally, with social media becoming second nature to many individuals, this gives private banks another style of engagement with which to open a dialogue with customers. CaixaBank’s 2.0 portal is an example of a multi-channel offering aligned with social media style tools. It offers features such as The Wall. Using this, customers are able to interact with their managers easily via video call, reviewing investment documents as well as having access to archives of previous conversations and transactions.
Technology can also put control back in the hands of the customer, equipping them with greater insight and offering improved transparency. CaixaBank Private Banking incorporates a self-planner allowing customers to simulate situations in their own financial planning or prospective investments. With variables produced by CaixaBank analysis, the customer can tailor scenarios of investment risk and opportunity developing a plan that matches their overall objectives. This was introduced to encourage an open dialogue between manager and customer resulting in a better informed customer.
It is fundamental that technology creates simplicity and efficiency for the customer first and foremost. We have kept this front of mind in developing our tools – so, for example, our platform integrates online authorisation that limits the need for a customer to visit a branch to sign certain documents, such as those related to MIFID or the execution of operations through the Ready to Buy service.
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By GlobalDataThe way companies and brands interact with their customers is changing, and the next generation of private banking customers is likely to become only more tech savvy. They will expect financial institutions to engage with them through their channel of choice, so private banks need to think now about how to integrate digital communication at the core of their service offering.
In this spirit, the private banking division is developing a new innovative project that will enhance the client experience and therefore their relationship with the adviser. Using a smart pc, (operated on a tablet) advisers will be able to guide the customer through the value proposition as well as through the tools available for their use. This will be more efficient for both, client and adviser, leading to a better relationship.
Juan Gandarias, managing director of CaixaBank Private Banking
