By Julien Hugo – Passionate about Customer Experience, Prodware Luxembourg.

Talking about Private Banking solutions to customers used to systematically bring conversations around the services & products financial institutions provide, and the way they are overperforming or limiting investments risks. If this has been a good strategy for financial institutions for years, it appears to be more than insufficient nowadays. And this has nothing to do with the products quality or return. So, what happened?

Talk to a customer today, and you’ll see that most of the conversation is not about products

To understand the reasons of such a shift, we should take a look back in time. After WWII, our society had to rebuild everything and entered an era of prosper activity. Companies focused on the sustainability of their products to gain loyal customers. By the end of the century, as the competition became harder over time, the price turned into a clear differentiator. Discounters appeared everywhere and the financial sector, as others, followed the trend. Obviously, it was not enough to jump in the blue ocean. Here comes Private Banking, adding upper class services to the value proposition. The most advanced banks are customer centric. They get equipped with Customer Relationship Management (CRM) tools and collect as much information as possible about their clients. Meanwhile, this led to an uncontrolled excess of data which is causing nightmares to a lot of DPO’s today, but this will not be covered here.


It’s all about Customer Experience (CX)


Harley Manning’s pyramid describes what constitutes a great customer experience. It comes in three stages, each of them being of equal importance.  

- First level : “Meet the needs”.

Meeting the needs by bringing top class products & services will make customers satisfied. However, they continue to churn. Why?

Because they are looking for more.

Part of the financial institutions clearly understood customers’ expectations and started to operate a digital transformation that simplifies the processes and tools such as banking apps and portals (most of the time with a strong focus on retail consumers).


- Making things easy is the level two.

Facilitating the journey for your customers, makes them loyal.

Digitalizing the onboarding process is for sure a good way to build a reliable relationship with your customers, making it easier and less time-consuming. Through this digitalization, we address digital natives and all the people that identify themselves as such.

Waiting time is one of the most important things to fight against when it comes to CX improvement. Time is precious, nobody wants to loose theirs.


- Third and last level is offering an enjoyable experience.

Making your customers feel good and generate positive emotions will differentiate your service from competition. Some banks even already banned the terms “Private Banking” from their communication and prefer to talk about “Wealth Management” instead, in order to send their clients the message : We care about you.



Create your religion, make ambassadors

Some successful brands clearly understood the importance of a strong CX strategy. What do you think about the quality of the coffee of a famous green and white brand I won’t name? I have my opinion. So why do they succeed? Because they put all their efforts in bringing the best experience ever and drastically reduce their investments in product development. Recent studies agree on the fact that this paradigm change generates 5% more revenue in average.

To join the club of the best CX financial institutions, you must turn to a brand-oriented model. It’s all about your values and the emotions you arouse amongst your customers.

Let me give you a last advice. If you ever want to break the roof of the pyramid in the Private Banking sector, have a look at the news and ask yourself: government deficits, public spending cuts, increasing inequity and environmental concerns, … Do you really believe that the current generation of wealthy families and individuals are willing to pay to simply preserve and manage their money? I don’t! Bring some humanity and spirit to your behavior, be proactive in our society change and you will create a real community of ambassadors.


If you are interested in learning more about how to deliver these changes to your current way of working, join us at the “Private Banker” event on April 25th at Hotel Le Royal. More information:

Publié le 15 avril 2019