“Virtually every commercial transaction has within itself an element of trust,” wrote Nobel prize winner Kenneth Arrow. Arrow’s line describes why banks emphasize consistent and personalized interactions with their customers across all branches– to build trust. Back when an actual bank was central to all banking activity, personalizing customer interactions wasn’t too complex. Executives placed greeters at every bank entrance and favored tellers with the local accent who would address us by name. But as we’ve exchanged our interactions with bank employees for banking apps on our phones, banks have been challenged to adopt their familiar strategy of emphasizing human interactions to our screens.
The technology that enables personalization is consistently improving and I’ve noticed increased personalization in my banking apps. Today, my American Express app, for example, greets me with a message appropriate to my time of day. And my Chase app welcomes me with a background based on my location (as I write this post in the Chicago office, I am greeted with the Chicago skyline). In the words of Chase’s head of digital for consumer and community banking, these apps were built with the intention of “humanizing the [digital] experience” aka giving the customer a digital experience similar to the retail experience, a concept that technology has only recently been able to realize. While the app will never replicate human interaction, it has the potential to master personalized interactions on a scale that is impossible for a bank employee (who can easily forget information or get stressed on the job) to do.
As banks seek to regain our trust after the Recession (Gallup), their increasing ability to create a consistent brand experience across all mediums for their customers is great news. Not only do they signal a bank’s excitement to help us where we are – whether online or in the store – they also bring consistency to the bank’s brand experience, an important part of building brand trust and loyalty (Journal of Consumer Research). The banking industry’s ability to use mobile for building customer trust is certainly something we can expect other industries to replicate.