Technology is rewriting the rules of interaction in the financial industry. Aidan Power, director of customer, brand and marketing at KBC Bank Ireland, speaks to Briony Richter about finding the perfect balance between the physical and digital worlds
We live in a world where instant gratification, coupled with security and efficiency, is expected. It is a tough job. KBC Ireland believes it is completely possible to deliver this to customers if digital and physical channels are integrated effectively.
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By GlobalDataAlthough different in some ways, physical and digital interactions are two sides of the same coin. It is all about balancing both to create reliable and seamless platforms.
Speaking to RBI, Power describes his focus at KBC Ireland: “My role is very diverse. It’s a lot of developing propositions to digital marketing – a lot to do with customer research and insights. We focus on keeping our trusted reputation.”
He adds: “I love it. What’s been very exciting is creating the brand from the start. You don’t very often get the chance to create brands, so I have been with KBC Ireland for the last six years.”
“Watching the brand grow within the Irish marketplace has been great. So creating a brand from start to finish is fantastic; you can define it and recreate it as you go along.”
Taking on the role of a challenger bank, KBC Ireland aims to be the alternative choice for consumers who want a more interactive and positive approach to banking.
Constant connectivity
Attention to detail and a customer-centric focus allow challenger banks like KBC Ireland to differentiate themselves from incumbents. Constant connectivity means consumer expectations are higher than ever. Power believes this is why KBC Ireland will continue to go from strength to strength.
“Trying to create brand awareness is a challenge. Every customer is unique and every account is hard-won when you are starting and creating awareness. We’ve got over a quarter of a million customers now, so it’s doing really well. We are recognised as a real player being seen as very dynamic and different.
Power adds: “Our whole brand proposition is around customer-centricity. We are providing an alternative choice – a bank to challenge the way it’s always being done.”
The financial environment is incredibly dynamic. Even as digital banking methods become the norm, branch networks will still play a critical role in building a brand’s reputation and trust.
For KBC it is important to spend time getting to know customers and understanding their financial goals. Although many banking tasks are now being conducted digitally, Power highlights that consumers still want human interaction, even if they do not use it as often.
Part of the bank’s strategy to stand out was changing how it communicates with consumers; that involved replacing the term ‘branch’ with ‘hub’. Power explains: “We deliberately call them hubs as opposed to branches. We wanted to change the language; that has taken time for people to get used to, but it’s how we differentiate ourselves from the traditional language.
“It was a challenge but it is working. The bank decided that the way we designed the hubs had to be different from incumbents. We got rid of teller counters. We wanted the redesign to be as transparent as possible, almost more of a café than a bank to a certain extent.”
He continues: “Also taking into account how customers feel when they walk into one of the hubs is extremely important, so we have free Wi-Fi, mobile chargers to use, people can get coffees or teas. We have a welcome desk, so everyone is greeted as they come in.”
KBC balances physical and digital
The landscape of banking is changing dramatically. Banks have seen the financial ecosystem explode with new tech-savvy competitors aiming to entice customers to their more digitally focused platforms.
Although meeting all regulatory standards, incumbents are falling behind when it comes to customer satisfaction. However, although challengers are more digitally focused, KBC Ireland sees the benefit in both channels being used to serve consumers.
Sitting in on research meetings and looking into other markets, Power believes that even though digital methods are on the rise, consumers still want human interaction. He says: “You have to look deeply into what the customer wants. Generally, customers making decisions like investments or buying a home want human interaction. Anyone can call into our hubs, but definitely, when it comes to mortgages, those decisions are largely made within the hub.”
“Consumers are taking a little longer to adopt – sometimes they need to catch up with the trends. You have the first followers, and then the masses move eventually. While digital activity is increasing significantly, it still needs a momentum behind it to get a majority of people comfortable with it,” Power notes.
Mix of channels
Putting a focus on the physical channel as well as digital meant mirroring the day-to-day needs of consumers. One of the 16 hubs is open seven days a week, and the rest open on Saturdays. The reasoning for this is that more consumers are working non-traditional hours.
“What we found when it came to channels was that it didn’t come down to one specific channel or another; it’s actually the mix of channels and that’s what our customers keep telling us,” Power explains.
There is still a need for customer-centric hubs in which to welcome people. The roles of the hub’s employees may change in the future, but they will still be necessary to assist customers. For KBC, it is the people that build the strong relationships, with technology acting as the enabler.
Mobile banking is fast becoming the most popular way to bank. Initially trending highest among millennial generations, the payment method is now being used far more regularly by all demographics. Through its mobile app, KBC Ireland manages to preserve that customer-centric focus and translate it into a digital approach to reap the benefits of both channels. It is also about fostering a digital mindset among staff members.
Speaking about having a mobile and online presence, Power states: “Mobile banking has increased significantly. Across the board we are seeing an increase in terms of digital transactions. Within our own customer base that goes across all demographics. We design for mobile and digital, but there are quite a lot that still prefer desktop for onboarding, so they haven’t fully migrated from the web.
“Even though the younger generations are quick to adopt new technologies, in my experience the older age categories are actually really digitally savvy. They may not have grown up with the technology, but they do adopt it quite easily. We have seen that happening a little bit at KBC, but just generally in research it shows that older generations are in tune with mobile banking.”
When it comes to onboarding through the mobile app, KBC Ireland states that it can be done seamlessly in less than five minutes. All customers need to do is fill out some basic information and take a selfie for authentication. The bank then delivers the card to the phone and instantly puts €5 ($6) into the account.
Around 78% of KBC Ireland current account customers use mobile banking, and while customers do use both digital channels, it seems there is a growing preference for mobile as the device of choice.
Looking forward
Power points out that although technology developments are important, the future will depend on where the customer wants to go.
He explains: “I think it will be all about the way consumers want banking to fit into their lives, and technology will be the enabler. Customers still want to interact with people so we still have to provide that facility, as well as digital innovations. How they interact with their bank might change.”
Power has been with KBC Ireland for six years, watching the brand enter the Irish market and grow. For him, it is all about making the customer journey as easy, secure and engaging as possible.
