As consumers are getting more comfortable with making financial transactions online – from ordering grocery to banking and purchasing insurance – the market is also becoming more competitive for financial institutions (FIs.)

You aren’t just competing with the bank down the block or the credit union in the next town. While you have the opportunity to access a national or even international clientele, you’re also competing against other FIs from around the globe.

How can you stand out?

The financial industry is highly regulated and many consumers consider most financial products as a commodity.

Simply coming up with a slightly different product or a marginally better pricing is no longer enough to set you apart in this competitive landscape.

Thankfully, there’s a gap in the market and if you fill it before your competitors do, you’ll set your brand apart and gain market share.

Customer Experience: the New Frontier

Consumers are willing to pay more for a better customer experience (CX), which will become the key differentiator, overtaking price and product by the year 2020.

Customer Experience Statistics


Your customers have developed high expectations when they interact with other consumer brands that deliver a user-centric customer experience.

In addition, the line between online and offline is blurring. Customers want a seamless omnichannel experience even when they switch channels or devices while interacting with a brand.

However, the financial industry has lagged behind in delivering an outstanding customer experience. Many FIs fail to meet customer expectations and consumers are increasingly frustrated with the industry.

A report titled “Improving the Customer Experience in Banking” found that only 37% of organizations have a formal CX plan.

While many FIs are starting to invest in CX initiatives, they’re still facing a lot of challenges in the implementation – especially with data analytics, technology, and the creation of a 360-degree customer view.

In addition, most FIs still approach CX from the perspective of internal benefits (e.g., cost cutting, increasing sales) instead of customer benefits (e.g., ease of use, responsiveness), which is the key to delivering a customer-centric experience.

How Financial Institutions Can Improve Customer Experience

To successfully deliver an excellent customer experience, you need to shift the focus of your organization’s digital engagement from cost reduction to experience enhancement.

Focus on building trust and developing relationships with your customers throughout the entire customer journey – engaging them from the moment they’re researching about a financial product, to opening an account and becoming an advocate for your brand.

Here are some ideas for designing an engaging CX that will improve customer acquisition and retention:

Create an Exceptional Mobile Experience
More and more customers are engaging with FIs via mobile devices. For example, 49.5% of all online searches for life insurance and 42.1% for over-50s life cover came from mobile devices, according to Alex Koslowski, head of proposition in the consumer division at Royal London, the UK’s largest mutual insurer.

To capture these customers, develop a mobile-optimized website that’s not only responsive but also utilizes mobile-specific features such as tap-to-call, location service, and auto-fill to streamline the user experience.

You can also create a mobile app that enables customers to carry out specific tasks quickly and easily, e.g., pay bills or deposit a check.

Barclays Mobile Banking won two FStech Awards for a feature that enables customers to call the bank directly from the app and introducing instant lending on a mobile device.

Use Engaging Content To Simplify Complex Processes
Many consumers are intimidated by the complexity and variety of financial products. FIs can create interactive, educational, and engaging content, e.g., a quiz or product selector, to help customers understand their needs and choose the best products.

Streamline your online application processes by simplifying product configurations and pricing structure.

In addition, you can use gamification to increase customer engagement and loyalty.

Deliver a Consistent Omnichannel Customer Experience
Customers want a seamless experience when they interact with your brand across all touchpoints and devices.

Develop a centralized database for storing your 360-degree customer profiles, which can be updated in real-time as customers interact with your brand on multiple channels.

With the development of a single customer view, you’ll also have the opportunity to leverage advanced analytics, machine learning, and contextual engagement to be proactive about your advisory and sales activities and deliver a highly personalized experience through your customers’ preferred channels. Defining an audience


How To Optimize Customer Experience Cost-Effectively [ Case Study ]

Creating an exceptional customer experience is a sizable undertaking that involves many moving parts.

What can you do to ensure that your CX initiative is achieving the desired customer experience and the associated business objectives?

Security Service Federal Credit Union (SSFCU) is an $8 billion member-owned organization. It’s the largest credit union in Texas and the 8th largest in the nation, serving more than 700,000 members worldwide.

As more members choose to self-serve online, SSFCU needed to offer high-quality service in their digital environment. SSFCU had to take its website usability and online service capabilities to the next level quickly and effectively.

SSFCU worked with UserReplay and used advanced technologies such as machine learning, a variety of CX analytics, and patented interactive user session technology, to define and improve their CX strategies.

As a result of this collaboration, the credit union reduced the time it needs to identify and fix CX issues by more than 50%. They’re able to act on critical issues immediately to minimize the overall impact on the business.

In addition, they have the ability to test new products and services with their members before spending the time and resources to bring them to market so they can maximize ROIs.

With the aid of advanced analytics and technologies, you can now take the guesswork out of implementing CX initiatives for your financial institution and make data-driven, informed decisions.

SSFCU Webinar

It’s always exciting to bring-in and increase traffic to your website via multiple channel marketing campaigns. However, any issues on your website that could affect digital customer experience and create struggle, will impact more customers as traffic volumes ramp-up. Struggle detection is therefore critical.

A small issue lying deep down in the conversion funnel could cause major damage and result in masses of lost revenue opportunities.

Despite this, your figures from revenue, conversions and/or funnel analysis may well tell you the campaign is successful (unless the traffic crashes the website!).

These high-level numbers have a tendency to be misleading while increasing sales figures often cover-up long-standing problems on your website.
This final point is the most important, because, if you don’t know a problem is occurring, then you don’t know that your conversion rate could be doubled!

Struggle detection – Gain deeper insight

While web analytics tools provide a basic understanding of the traffic on a website, digital customer experience (CX) analytics offers the deep understanding of how well your customers are being served in your digital store.

If you’re interested in your customers’ digital CX and want to know about the conversion opportunities you aren’t yet capitalising on, struggle detection offers everything you need to know.

When splitting the traffic on a website based on where each session drops out, you can expect a relative static distribution, thus a consistent conversion rate. For example, the figure below illustrates one way how website traffic can be segmented on a retail website.

Window shoppers are purely browsing on the site, not adding things to the shopping basket. Shoppers that have added things to the basket, but have not started the check-out process can be defined as a potential purchase. These two segments constitute most of the traffic on a retail website. They are the prospects that could come back later on and move down the conversion funnel. Their ratio varies depending on the type of the business and its position within the market.

The next segment ‘struggle purchase’ is the bottleneck of the website that could potentially prevent traffic from converting, resulting in low ROI from your marketing campaign. This segment may even make all your marketing efforts redundant and actually damage the brand reputation because of the struggle they experience at this stage.

Actionable insight

The struggle purchase segment can account for 70% to over 200% of the conversion. Given a 2% conversion rate, this crucial segment is between 1.4% and 4% of the overall traffic. It means that struggle detection is ultimately anomaly detection.

While it is difficult to discover this segment, it is ultimately rewarding once it is accurately identified as it opens a ‘rabbit hole’ and exposes all kinds of unexpected issues on a website.

For example;
– You may discover the account login does not work, even after customers’ multiple attempts to reset the password.
– You could uncover a hidden error page that clears the whole shopping basket
– You could find out that the coupons sent out during marketing campaigns do not work because of technical issues.
– The submit payment button, the very last step before conversion, becomes a dead button for certain operating systems and browsers.

It is a combination of some of these struggles that could amount to 70% to 200% to your conversion. As serious as these issues are, they can be easily missed, even when you are equipped with various session replay tools. This is because they only account for 1.4% to 4% of the traffic and your analysts simply do not have enough time to painstakingly replay all user sessions.

Deliver value

Without proprietary machine learning algorithms, surfacing these sessions is just like finding needles in a haystack. Anomaly detection is a challenging problem in the machine learning space and standard analytics technology barely touches the surface of the solution.

At UserReplay, we offer the solution of struggle detection by utilizing a combination of advanced analytics and various machine learning techniques on multiple data sources generated during a user journey.
In the following posts, we will detail information on what we have accomplished in solving this and will present our findings.

Stay tuned folks! 🙂


To learn more about how UserReplay could help you detect struggle and increase online conversion on your website, then book a demo with one of our experts. 


Request a demo

Nearly every company is investing in customer experience as a key differentiator in digital business, but there is a clear difference between those that are succeeding and those that are falling behind.

Among companies that are thriving despite digital transformation, 78% credit key technology upgrades for their success.

Over the last decade or so, customer experience management analytics (CXA) solutions have emerged as an essential technology for companies looking to position customer experience as a differentiator. However, data privacy concerns can’t get lost in the midst of CX information collectiont.

Some CXA features (for example, customer service replay, customer dispute resolution, and fraud analysis) require you to capture personal customer data. Because of this, you have to stay up to speed with the main data privacy regulations.

4 Data Privacy Regulations Customer Experience Managers Must Keep in Mind As every industry goes digital, balancing data privacy and CX innovation will become increasingly challenging. While some industries are more heavily regulated than others, the reality is that there aren’t any general federal laws regarding the collection and use of customer data.

Instead, there are a number of lower level state/federal regulations and industry guidelines that companies must adhere to. Here are some of the biggest privacy laws CX managers must keep in mind when implementing CXA solutions:

The Federal Trade Commission Act: This regulation can be applied to offline and online privacy scenarios, prohibiting companies from “unfair or deceptive practices.” The FTC has been known to enforce this regulation when companies fail to comply with privacy policies and unauthorized disclosure of customer data.

Financial Services Modernization Act: The financial services industry is one of the most heavily regulated globally. This regulation creates stipulations for the collection, use and disclosure of customer financial information. Banks, securities companies, insurance organizations and more must comply with these guidelines. In many cases, this act requires financial institutions to disclose their privacy practices and give customers an opportunity to opt out.

tFair Credit Reporting Act: For consumer reporting agencies, any communications related to creditworthiness, credit history, credit capacity, character and general reputation must be properly protected according to the guidelines of this legislation.

Electronic Communications Privacy Act/Computer Fraud and Abuse Act: Data breaches are hitting the news at an alarming rate and regulators are trying to update older laws to keep pace. These two acts regulate the interception of electronic communications and computer tampering, forcing CX managers to make sure the data they collect is behind proper firewalls. These are just 4 of the more prominent data privacy regulations—but they only apply to businesses in the United States. When you start dealing with international data transfers and global businesses, regulations become even more complicated. The main takeaway here is that there’s no way a single CX manager can keep track of these data privacy regulations alone. As you implement your CXA solution, you have to make sure the technology helps you maintain regulation compliance while also improving customer experiences. Key Considerations for CXA Solutions with Regards to Data Privacy When choosing your CXA solution, one of the most important questions for vendors should be whether or not they will ensure data protection regardless of deployment methods. To dig a little deeper, make sure to weigh the following key considerations: What approach does the CXA solution take to capturing PII both with SaaS and installed software? How can the CXA solution handle PII if you move to a SaaS-based approach? Does the vendor offer deployment options that enable PII capturing and storage while taking advantage of the increased accuracy of a client-side approach? How does the CXA solution help ensure compliance with all relevant data privacy regulations? With UserReplay, we’ve taken a unique approach to CXA deployment that finds a balance between CX insight and data privacy. If you want to learn more about this approach and the security features of the solution, click here and watch a demo of UserReplay in action.


For several years now, traditional financial services firms have been under siege from a new market of financial disintermediaries—startups focused on using digital channels almost exclusively, to streamline financial services.

Whether you’re a bank, insurer, retirement firm or wealth management firm, you know that digital isn’t just a fad. Digital is a reality that financial services firms must deal with or risk losing even more market share and revenue to emerging FinTech companies. Succeeding in digital is predicated on delivering a superior customer experience. FinTech firms have had the upper hand in this regard, but traditional firms are making strides to catch up.


<< Book a Demo Now to See How You Can Increase Your Customer Experience ROI >>


Earlier this year we discussed the lower-level process of optimizing the digital customer experience in financial services. Now, let’s take a step back and understand the bigger picture of what the financial services industry is facing.

The New Financial Services Reality

Investments in financial technology have grown over 1,000% since 2010 (from $1.8 billion to $20 billion in 2015). These investments are expected to accelerate through 2020 as some FinTechs transcend startup status.

There are many residual effects of digital dominance in the financial services industry, but two important ones include:

  • An Uptick in Fraud: According to Financial Fraud Action UK, 2015 saw 26% increase in fraud in the UK financial services ecosystem, totaling €755 million. Specifically, there was a 72% increase in remote banking fraud, pointing to the effects of greater adoption of digital channels—both by consumers and financial services companies.
  • In-Person Banking Is Dwindling: Major banks and financial services providers are a long way from going entirely digital. However, consumer behavior is accelerating the shift. Branch banking is still going strong, but 40% of Americans haven’t visited a bank in the last 6 months.

These two opposing trends are indicative of a realization that multiple other industries have come to in recent years—consumers are willing to sacrifice some level of security for the convenience, ease, and better customer experience of digital channels.

Because FinTech disintermediaries can, in some cases, offer simplified account setup processes, more attractive rates and fees, and better overall experiences online, they are successfully eating away at the revenue that well-established firms have owned for years. Traditional financial services companies need an effective way to observe digital behavior and optimize customer experiences accordingly.

The Big Data Opportunity for Financial Services Firms

Capgemini Consulting research recently found that 37% of customers believe banks don’t understand their needs and preferences. At a time when customer experience is a key differentiator for digital financial services businesses, companies must be in tune with what customers need and want.

This is where customer experience data will play a role in digital financial services moving forward.

The same Capgemini survey also found that 60% of financial institutions see customer experience data and analytics (part of big data) as a means to creating competitive advantages while 90% go as far as to say that it may define future winners in the industry. Leveraging big data analytics to optimize the customer experience is an answer to keeping up with innovative FinTech startups while unlocking revenue you never knew you earned.

If you want to learn more about the digital landscape surrounding financial services as well as how customer experience analytics can help incumbent firms adapt to disruption, download our new ebook, How Financial Services Firms Can Uncover Hidden Revenue Opportunities in the Digital Channel.

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