The COVID-19 pandemic has done a lot of real damage to various industries but has also been instrumental in the success of others. For instance, the digital banking sector has seen a lot of activity in 2020. As a preventative measure against crowding and close interactions, most banks drove most of their clients online. This is for the purpose that they can better manage their day-to-day lives. This is true for Bank of America.
According to Rewards Executive at Bank of America John Sellers, their in-house numbers have been nothing but impressive and the evidence is quite clear. Statistics presented in an On The Agenda discussion with Sunday Sky CEO Jim Disco and PYMNTS CEO Karen Webster, Sellers showed that the bank had about 10 billion total transactions and interactions for the year. 9 billion of which occurred online with their 66 million clients. In the third quarter of 2020, the bank reported having about 39 million active users in the digital space. Of this number, 30 million are mobile users. There were also about 43 million mobile check deposits during that quarter alone. This means that more and more people are preferring to go the digital route.
Although digital banking has had quite an explosive year, there are a few areas where customers still prefer walking into a physical banking hall and getting the assistance they require. For instance, when it comes to new products and services, people prefer having someone at the bank. This is to take them through all the relevant information instead of reading about the service or product on their website where the information is uploaded in long-form. Because most people prefer things the simple way, they, therefore, choose to head over to the bank.
The impact of personalized video
To this end, Bank of America leveraged a new way to get information across without having to bore people with unending details on a particular product. Sellers noted that over the last couple of years, a video has been crucial in creating a meaningful digital journey with the clients. A customer’s essence wants smooth experience, satisfaction, and growth. A personalized video has been a powerful tool to bring all these aspects together. According to Mr. Sellers, there is better penetration of certain products such as credit cards and people buying more assets on those watching these videos.
To get your point across in this medium, you must find a way to imprint your information into their brains which is better done via repetition. For instance, here you tell the customers that you’ll be giving them some information, hand the information to them and then finally recap the information.
Since customers work very hard for their money, rewards attract a lot of attention. Traditional ways of presenting rewards to clients are not taking especially with a new generation getting into the workforce every year. Personalized video is one of the most consumed media of this generation and therefore Bank of America is leveraging that. Because videos tend to be brief and with plenty of information, clients have come to love and appreciate them.
Building the best customer journey
Just like in every other relationship, the journey is important and is crucial in determining how strong the relationship will be. From the first time a client opens an account, that’s where the journey begins. The banks thereby have to be able to have a proper path where the bank can start fostering a relationship with the client to build trust and confidence. A proper customer journey will be specifically tailored to showcase a bank’s products, services, and strengths so that the client would want to tell a friend about the bank and what they are offering. In BOA’s case, their rewards clients are fiercely loyal. They represent about 12% of the member base but their assets take up about two-thirds of the bank’s assets!