Customer Experience

Ultimate Guide to Customer Experience in Financial Services

AskNicely Team

Ultimate Guide to Customer Experience in Financial Services

The financial services industry is undergoing a profound transformation, fuelled by technological advancements and the emergence of disruptive FinTech companies challenging traditional institutions. This evolution is reshaping the way customers interact with financial products and services, driving expectations for seamless, personalized experiences at every touchpoint.

Amidst these changes, the critical role of customer experience in distinguishing financial services companies and fostering long-term customer loyalty cannot be overstated. As consumers demand greater convenience, transparency, and efficiency, organizations must prioritize delivering exceptional experiences that meet and exceed customer expectations. In this Ultimate Guide to Customer Experience in Financial Services, we'll explore the strategies, best practices, and technologies that can help companies thrive in this dynamic landscape.

What is customer experience (CX) in financial services?

Customer experience (CX) in financial services encompasses the entirety of interactions between a customer and a financial institution, spanning from initial engagement to ongoing support and service. It encapsulates every touchpoint along the customer journey, including opening accounts, conducting transactions, seeking assistance, and resolving issues. CX profoundly influences customer loyalty, satisfaction, and ultimately, the success of financial institutions in retaining and attracting customers.

For instance, the ease of use and functionality of online banking platforms significantly impact CX. Customers expect intuitive interfaces, streamlined processes, and robust security measures when managing their finances digitally. A seamless and user-friendly online banking experience enhances customer satisfaction and loyalty.

Consistency across channels and touchpoints is essential for delivering a cohesive CX. Whether interacting in-person, online, or via mobile devices, customers expect a seamless experience that seamlessly transitions between channels. An omnichannel approach ensures continuity and convenience, allowing customers to access services and information effortlessly.

In contrast, traditional approaches to CX in financial services may have been characterized by rigid processes, limited communication channels, and fragmented experiences. Modern institutions prioritize CX trends, agility, personalization, and innovation to meet the evolving needs and preferences of customers in today's digital age. By embracing technology, data-driven insights, and customer-centric strategies, modern financial institutions strive to deliver superior CX that sets them apart in a competitive market landscape.

Why is CX important in financial services?

In today's financial services landscape, characterized by rapid technological advancements and the rise of innovative FinTech startups, customer experience (CX) has emerged as a critical differentiator. With heightened competition and evolving customer expectations, financial institutions must prioritize CX to remain competitive and drive sustainable growth.

CX directly influences key business metrics, making it integral to the success of financial institutions:

Customer retention:

Exceptional CX fosters loyalty and encourages customers to remain with their financial institution over the long term. By delivering superior service and addressing customer needs proactively, organizations can reduce churn and retain valuable customers.

Churn rate:

A positive CX mitigates churn by reducing the likelihood of customers switching to competitors. Investing in CX initiatives that enhance satisfaction and address pain points can help organizations maintain customer relationships and minimize attrition.

Brand reputation:

CX plays a significant role in shaping brand perception and reputation within the financial services industry. Positive experiences lead to favorable word-of-mouth recommendations and enhance brand trust and credibility, while poor experiences can tarnish reputation and deter potential customers.

Customer lifetime value (CLV):

Satisfied customers are more likely to engage in repeat business and generate higher revenue over their lifetime. By focusing on CX and building strong customer relationships, financial institutions can maximize CLV and extract greater value from their customer base.


CX directly impacts revenue generation by influencing customer acquisition, retention, and upsell opportunities. Satisfied customers are more likely to expand their relationship with a financial institution, leading to increased product adoption, cross-selling, and ultimately, revenue growth.

Great Customer Experience in Action - Monzo

The impact of CX on customer decision-making is vividly exemplified by the case of Monzo Bank. As a disruptive FinTech challenger, Monzo has garnered attention for its innovative approach to banking and customer-centric ethos. A prime example of positive CX driving customer loyalty, Monzo has cultivated a loyal following by prioritizing user experience, offering intuitive mobile banking features, and providing transparent and responsive customer support.

Conversely, instances of negative CX can swiftly erode customer trust and prompt individuals to seek alternative providers. For example, if a traditional bank fails to address customer inquiries promptly or provides cumbersome and outdated digital banking experiences, customers may become disillusioned and inclined to explore alternatives such as Monzo. This underscores the critical importance of CX in shaping customer perceptions and driving retention in the competitive landscape of financial services.

What are the key components of a positive customer experience in financial services?


Personalization in financial services entails customizing products, services, and communication to meet the unique needs and preferences of individual customers. This can include personalized recommendations based on financial habits, targeted offers tailored to specific life events, and personalized communication that acknowledges the customer's history with the institution, ultimately fostering a deeper connection and enhancing satisfaction.


Convenience is paramount in delivering a positive customer experience, encompassing easy access to accounts, transactions, and support channels. Providing seamless digital banking experiences, intuitive mobile apps, and 24/7 customer support ensures that customers can manage their finances efficiently and access assistance whenever needed, leading to increased satisfaction and loyalty.

Security and trust:

Security and trust are foundational elements of a positive customer experience in financial services, with customers entrusting institutions with sensitive financial information. By implementing robust security measures, ensuring data protection, and transparently communicating privacy policies and security protocols, financial institutions can build trust and confidence, reassuring customers that their assets and information are safeguarded.

Transparency and clarity:

Transparent communication of fees, terms, and conditions is essential for fostering trust and confidence among customers. Financial institutions should provide clear and easy-to-understand disclosures, avoiding hidden fees or complicated jargon that may confuse or frustrate customers. Transparent practices build credibility and strengthen the relationship between the institution and its customers.

Efficiency and responsiveness:

Timely resolution of inquiries and issues is crucial for delivering a positive customer experience and demonstrating responsiveness to customer needs. Streamlined processes, quick turnaround times for requests and inquiries, and proactive communication throughout the customer journey ensure that customers feel valued and supported, leading to greater satisfaction and loyalty.

How can financial services teams measure and improve customer experience?

Implementing a customer experience (CX) plan in financial services can present challenges, from gathering actionable feedback to ensuring frontline teams are equipped to deliver exceptional service. However, there are key strategies teams can employ to measure and improve CX effectively:

Collect & Analyze Feedback:

Establish mechanisms to gather feedback from various touchpoints, such as NPS surveys, social media, and customer support interactions. Analyzing this feedback allows teams to identify trends, pain points, and areas for improvement, enabling targeted initiatives to enhance CX.

Leverage Data & Analytics:

Automate Routine Tasks: Streamline processes and automate routine tasks to enhance efficiency and free up resources for more meaningful customer interactions. Leveraging automation tools for onboarding processes, account management, and customer support enables teams to deliver faster, more consistent service while reducing manual errors and workload burdens.

Educate & Advise Frontline Teams: 

Provide ongoing training and support to frontline teams to ensure they have the knowledge, skills, and tools necessary to deliver exceptional CX. Empower employees to understand customer needs, anticipate concerns, and provide personalized solutions, fostering a culture of customer-centricity and service excellence.

Track Your Progress & Refine the Process: 

Establish key performance indicators (KPIs) and metrics to measure CX effectiveness and track progress over time. Regularly assess performance against these metrics, solicit feedback from employees and customers, and iterate on strategies to continually refine and improve the CX process. By embracing a cycle of continuous improvement, teams can adapt to evolving customer expectations and drive long-term success.

For more tips on how to improve your customer experience and leverage modern technology, check out this blog. 

How Can AskNicely Help?

How can AskNicely help revolutionize customer experience in financial services?

AskNicely is a powerful customer experience software designed to streamline the process of collecting and analyzing customer feedback, enabling financial services teams to measure and improve CX effectively. Trusted by industry leaders such as Lendmark Financial, Ericson Insurance, First Commonwealth, DebitSuccess, and more, AskNicely has proven instrumental in enhancing customer satisfaction and loyalty within the financial sector.

As described by First Commonwealth, “AskNicely has helped us understand members’ perspective of their experience. We can now coach and develop our teams to excel at service delivery based on what actually matters to our members.” 

AskNicely offers a range of features tailored to meet the unique needs of financial services teams:


Gamify customer service and support for frontline teams with real-time NPS/CSAT scores and actionable insights to improve service delivery.

Customer Feedback:

Customize email, web, or SMS surveys to gather valuable insights, including NPS, 5-Star, CSAT, or Customer Effort score, ensuring an engaging and informative feedback experience for customers.

Team Analytics:

Gain mission control to measure and improve CX with comprehensive analytics. Compare locations, branches, and spot trends that require immediate action to drive continuous improvement.


Seamlessly integrate AskNicely with key platforms such as CRMs, Help Desk/Ticketing Systems, and BI tools, enabling financial services teams to consolidate data and streamline workflows for enhanced efficiency and productivity.

Curious? Book a demo today. 

AskNicely Team
About the author

AskNicely Team

AskNicely Team
About the author

AskNicely Team

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