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Banks all over the world are losing customers, and they don’t know why

nCustomer churn, dropout, attrition, turnover – call it what you want, but the reality remains: banks worldwide are losing their customers. A recent study has highlighted a significant challenge for banks worldwide, indicating a substantial decline of up to 20% in customer retention. This drop is attributed to the banks’ insufficient adoption of technological innovations. In addition, the same report revealed that a number of banking leaders agreed to losing 30-40% of their existing customers for failing to adopt a customer-centric banking solution.nnTraditional banks in Nepal are encountering similar challenges as the financial services landscape undergoes a transformation. As of the beginning of 2023, Nepal’s internet penetration rate reached 51.6 % of the total population, reflecting the people’s substantial embrace of digital practices. This indicates a positive reception of digital innovations and a growing interest in seeking improved digital banking solutions.nnIn this blog, you will explore why global banks, including Nepali banks, follow similar customer churn trends and how banks can nudge their customers to stay loyal and continue engaging with their digital banking platforms.n

Why the goodbye?

nIn Nepal, despite the availability of diverse digital banking solutions across various channels and devices, users are hesitant or dissatisfied with their current banking options. This reluctance can be due to a range of issues, such as inadequate awareness, security concerns, and a general lack of trust. To overcome these hurdles, it is essential for Nepalese banks to delve into understanding customer behaviour, giving due consideration to customer psychology, and tailoring mobile banking services to align with user preferences.

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The road to customer retention is not long!

nNepal’s digital banking market is expected to witness a significant increase in its net interest income and is projected to reach US$57.7 million in 2024. In this scenario, cultivating customer satisfaction and loyalty is crucial for sustained success. From digital innovation to community engagement, here are some pivotal steps that can transform banking into a personalised and rewarding experience for Nepalese customers.n

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• Personalised services: Focus on tailored solutions to meet individual needs, offering bespoke advice and products aligned with each customer’s distinct financial goals.

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• User-friendly technology: Invest in user-friendly online and mobile banking platforms, ensuring a seamless and secure digital experience. Regularly update technology to stay ahead of customer expectations.

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• Transparent communication: Communicate clearly and transparently about fees, policies, and updates. Build trust through honest and open communication to foster a positive customer relationship.

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• Efficient customer support: Offer responsive and efficient customer support through various channels. Address queries and concerns promptly to showcase commitment to customer satisfaction.

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• Financial education: Provide resources and educational materials to help customers make informed financial decisions. Empowering customers with knowledge enhances their confidence and satisfaction.

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Why start with Clayfin?

nIf Nepalese banks are looking to curb their customer churn rates and want to offer a seamless user experience, they don’t have to look any further.nnClayfin specialises in offering tailored solutions to empower traditional banks across diverse locations. With over two decades of experience, we have consistently facilitated the smooth integration of innovative digital solutions into existing frameworks through collaborative efforts. This strategic partnership ensures a smooth transition to the digital age, emphasising the importance of enhanced customer experiences and operational efficiencies.nnHaving successfully served as a solutions provider, Clayfin has been instrumental in the transformation of prominent institutions, BRAC Bank in Bangladesh, Burgan Bank of Kuwait, and Bandhan Bank in India, to name a few, significantly elevating their global standing while bolstering revenue and online ratings.nnIn Nepal, personal finance management is becoming increasingly important as the country’s economy continues to grow. With the rise of new businesses and investment opportunities, banks have the responsibility towards their customers to help them solve problems like saving issues, debt, and other financial challenges.nnSpinach is our revolutionary Personal Finance Management solution that has been meticulously crafted for the Nepalese market. It is exclusively customer-focused, offering a tailored approach to personal finance management. Here’s what it offers:

In addition, we incorporate the following:nnData analytics capabilities: Our digital banking solutions use advanced analytics to provide personalised banking experiences to customers.nnMilitary-grade security: Our services are designed to be secure and robust, with military-grade security features that safeguard customer data. This includes encryption, multi-factor authentication, and other security measures.nnLatest react technologies: Our digital banking solutions are built using the latest React technologies, which offer a social app-like experience to customers.nnVariety in UX designs: We offer a variety of UX designs to choose from, catering to diverse user preferences.nnOut-of-the-box product features: Our digital banking solutions come with a range of out-of-the-box product features that can help banks implement their digital banking services more quickly.nnOur unparalleled expertise and state-of-the-art solutions position Clayfin as an ideal partner to facilitate the transition for banks in Nepal. We are confident that our digital solutions will streamline processes and contribute to their success in an increasingly digitalised banking landscape.nnReady to get started? Let’s connect.