How institutions can establish trust within digital channels

Illustration by Sensibill

The pandemic has impacted the way banks and credit unions interact with their customers and businesses in a major way. Branches were previously places to facilitate meaningful, quality interactions between customers and bankers, ultimately establishing connections and trust. In the pandemic’s wake, more people are choosing to bank digitally because of health concerns; the days of lingering in public places having face-to-face conversations are largely over (at least for now). This new normal is challenging institutions to figure out how to build trust and strengthen relationships within digital channels, which has historically been less automatic and more difficult than in-person exchanges. 

So, how can institutions overcome this barrier and establish trust remotely? It all comes down to transparency. Using digital to provide new levels of visibility around customers’ financial activity and help them monitor everyday spend can quickly build trust. However, transparency can’t be offered without the appropriate details. Deeper, contextual data points, like SKU-level data, are necessary to provide customers with an accurate and more holistic view of their finances. And it allows institutions to track purchases and offer transaction matching, providing more value to the customer. For example, let’s say a customer purchases $15.41 worth of oats every month from Amazon and he or she happens to be double-charged for an order. The bank or credit union should be aware and able to match the customer’s credit card with the receipt to spot any discrepancies. Whether it’s pointing out discrepancies or finding deals, customers want to know their financial institutions have their best interests in mind – it’s how lasting relationships are built.

This same type of transparency is necessary to establish trust with businesses. Banks and credit unions can leverage contextual information like SKU-level data to identify small businesses hiding in retail accounts, a more common occurrence than you might think. This can create a natural conversation about switching to a business banking account that better suits the customer’s financial needs. Knowing small businesses typically struggle with cash flow, this can also be an opportunity for the institution to offer financing options and information. And, if a small business is using a card from their institution, that institution should be able to identify purchase patterns and create more effective loyalty programs. 

Trust is essential to the relationship between institutions and customers; without it, there’s little separating banks and credit unions from the likes of GAFA and BigTech. However, as fewer people come into the branch, it’s time to evolve how trust is built and maintained, within the context of digital channels. Transparency is key; institutions must better know and understand their customers in order to provide them with the relevant services and create a sense of community. Relying on alternate data points can help provide unprecedented context into customers’ lives, allowing institutions to create value and ultimately earn trust.