Study Shows Majority of Banks Report Lost Deals and Revenue Due to Poor Customer Service
Process problems plague commercial onboarding initiatives at most banks.
CAMBRIDGE, Mass. – June 9, 2014 – Pegasystems Inc. (NASDAQ: PEGA), the software company powering the digital enterprise with Better Business Software®, today announced the results of a new global client onboarding survey1 that found that 98 percent of banks report lost deals and revenue from poor customer service with more than 20 percent of respondents indicating they’ve lost between 26 and 50 percent of new business opportunities.
The report highlights the negative impact current onboarding processes have on overall customer experience at global banks, driven by processes that take too long and do not provide a comprehensive view of the process for the customer. Nearly nine out of ten survey respondents believe the onboarding process impacts lifetime customer value. In fact, the study finds all phases of the onboarding process are riddled with manual workarounds and lack basic workflow automation. Many banks cited the speed of credit decision as the primary reason for customers dropping out of the process.
The age of the connected customer has put pressure on banks to update their onboarding initiatives. The customer experience is a collective interaction that includes more than just the customer service department, as claims, order fulfillment, payments, and other back-office functions also impact the customers’ interactions with an organization. While many banks responding to the survey indicated that “client centric” onboarding is a goal, they also acknowledged customer experience to be their top challenge. Banks state that the Know Your Customer (KYC) initiatives and related processes are the main pain point for customers and banks today.
The study indicates that banks “need to develop optimal future-state business architecture, focusing on those services that deliver value to customers, and then organize end-to-end processes that reach the back-office systems.”1 To execute on this vision, many banks will need to address digital innovation improvements required to move beyond spreadsheets, ad hoc email communication, and sticky notes that are still used to keep track of relationships that may be worth many millions of dollars.
1“Client-Centric Onboarding – Hopes and Realities for Global Banks,” A May 2014 commissioned study conducted by Forrester Consulting on behalf of Pegasystems
Quotes & Commentary:
“Anything less than a flawless onboarding experience puts banks at risk to lose clients and future business,” said Ron Wellman, Industry Principal for Commercial Banking at Pegasystems. “It also puts banks at risk for regulatory fines and brand damage. Banks need to address the technological divide that exists between how they have traditionally done things and the future state that will provide them with greater transparency and process efficiency.”
Complimentary copy of Client-Centric Onboarding – Hopes and Realities for Global Banks
Pegasystems (NASDAQ: PEGA) develops strategic applications for marketing, sales, service, and operations. Pega’s applications streamline critical business operations, connect enterprises to their customers seamlessly in real-time across channels, and adapt to meet rapidly changing requirements. Pega’s Global 3000 customers include many of the world’s most sophisticated and successful enterprises. Pega’s applications, available in the cloud or on-premises, are built on its unified Pega 7 platform, which uses visual tools to easily extend and change applications to meet clients’ strategic business needs. Pega’s clients report that Pega gives them the fastest time to value, extremely rapid deployment, efficient re-use, and global scale. For more information, please visit us at www.pega.com.
All trademarks are the property of their respective owners.
The information contained in this press release is not a commitment, promise, or legal obligation to deliver any material, code or functionality. The development, release and timing of any features or functionality described remains at the sole discretion of Pegasystems, Pegasystems specifically disclaims any liability with respect to this information.
Lisa Pintchman Rogers
VP, Corporate Communications
Director, Corporate Communications
Sr. Manager, Public Relations
Director, Corporate Communications
+44 (0) 118 9651 660
PR & Communications Manager
+44 (0) 118 9398 584
One Rogers St.
Cambridge, MA 02142
Phone +1 617-374-9600
Fax +1 617-374-9620