A decade has passed since the start of the worst global financial crisis in history. Banks and financial institutions have yet to fully recover—most report an average return on equity that is well below pre-crisis levels. Many have spent the past 10 years developing robust compliance processes and systems to keep pace with rapidly changing regulatory requirements. Meanwhile, cyber attacks against financial services providers have increased in frequency and sophistication, requiring companies to continually step up cyber-security protocols, systems and training.
Consumer demands that have transformed other sectors are putting pressure on financial services providers to improve service delivery. Customers expect to be able to conduct business on their own terms, when and where it’s convenient for them, using whichever device they prefer—and they’re willing to switch providers for a more effortless experience. Financial institutions that have relied heavily on fees and aggressive product sales will need to shift strategies. To become profitable in the Age of the Consumer, providing a high-quality customer experience is the competitive differentiator and the key to sustained growth.
The digital transformation that has been rapidly evolving other sectors has been slower to gain a foothold in traditional financial institutions. Fintech companies have emerged to offer tech-savvy consumers personalized, fast and efficient access to products by incorporating artificial intelligence, machine learning algorithms, digital currencies and big data into the experience. While making it easier for customers to conduct transactions via mobile is enabling fintech startups to rapidly expand, with growth comes the need for additional staffing and support to provide top-notch customer service when complex questions and issues arise.
The Consumer Financial Protection Bureau’s (CFPB) compliance requirements and the Fair Debt Collection Practices Act (FDCPA) enacted by the Federal Trade Commission (FTC) have elevated the level of service that call center outsourcing companies provide to customers of financial institutions. Subprime doesn’t mean substandard service. Financial institutions have turned to CustomerServ for guidance on outsourcing vendors that specialize in prime and subprime banking, credit cards and consumer loans.