To keep their customers satisfied, banks must offer, according to their experience, automated and updated services according to technology; however, there are other types of customers who, in addition to good online services, also seek to approach physical branches or be able to make a phone call looking for the required solution. In this way, we see that small banks strive to make their services more competitive to face the large banks, which allows the balance of “preference” to tip towards them; of course, it is very tough competition, resulting in increased focus and effectiveness in the small bank’s actions.
Big and small Banks
Due to their size, small banks may not be well known enough and therefore do not have the desired number of customers. However, as they grow, they find it difficult to maintain focus. That could be one reason why the big banks, continue to be big, have not been able to “knock themselves off that pedestal.” They can be considered for some time and circumstance, as arrogant and lacking empathy with their clients, but like large companies in other areas (for example, telecommunications), they maintain control over the market; however, this control is given by power implicit that they own, which gives them the false feeling of being the “owners” of their customers.
Are the big banks weakening?
Small banks must focus on their customers, adapt to their demands and invest in the most convenient. Banks are entities made to satisfy their demands and requirements for clients, they are instrumental, and they trust them to carry out their operations. Small banks grow by providing better services where large ones do not reach; they open new physical branches to generate more trust, recognition and be always available.
This banking model adapts to its customers, and that is why small banks have high retention and loyalty; due to these actions, large banks match or slightly improve their services only to surpass small banks. Hence, small banks must take advantage of this trend to provide exceptional and engaging service.
Keeping customers satisfied
With the irruption of technology, customers no longer accept the hegemony of before but now decide and demand short-term, immediate solutions, in addition to deserving personalized and omnichannel attention, depending on their circumstances and needs. All clients, in general, have a common point of view: it is the search for better service, adapted to the new times, and that is why the entities have to be where their clients are.
At this point, different small banks can leverage technology to offer financial products and services suited to customer needs, but this will only be effective as long as small banks stay focused and can grow without sacrificing their deal personalized service and the quality of its service.
What do you think about this topic? Do you think that the smaller banks are better than the big banks?
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