With the right training and tools, contact centers can be a central element of a bank’s strategy to prove its commitment to ESG and build customer loyalty and trust.
By Bhavana Rana
orOne of the clearest ways banks can express their commitment to building a better world is through sustainability initiatives. Sustainability is an important element of environmental, social and governance behavior that is increasingly used by socially conscious investors and clients to help guide decisions about who to do business with.
Millennials, in particular, have developed a reputation for being socially and environmentally conscious. As Forbes writes, the millennial generation “often endorses banks, investments and funds with demonstrated social and environmental sensitivity. This is why millennials are also known to be more interested in investing in their bets on companies and investment funds with measurable ESG records.
In fact, a recent report by Morgan Stanley shows that by 2021 a staggering 99 percent of millennials will be very or somewhat interested in sustainable investing, up from 84 percent in 2015, as well as 79 percent overall. -an.
Social responsibility and financial inclusion
For banks and other financial institutions, the message could not be clearer: If they want to continue to gain the business and loyalty of millennials and an increasingly socially conscious public, they must demonstrate their commitment to sustainability and social responsibility. And the commitment to social responsibility should include issues surrounding diversity, equity and inclusion as well as financial inclusion.
Banks are expected to do the right thing. We saw examples of this after Russia invaded Ukraine in late February: Goldman Sachs, JP Morgan, Deutsche Bank and Citigroup announced that they would cease operations in Russia. Many banks also make funds available to displaced refugees in Ukraine. In these cases, banks show empathy and willingness to respond quickly to disruptive events.
Financial inclusion initiatives also send a signal that a bank recognizes that it plays a major role in society. Financial inclusion, as defined by the World Bank, “means that individuals and businesses have access to useful and affordable financial products and services that meet their needs—transactions, payments, savings, credit and insurance—provided in a responsible and sustainable manner.”
Many banks and financial institutions already understand the importance of offering products and services that reflect the social consciousness of consumers and investors. “Wealth managers are continuing to make ESG-informed investments, and retail banks are creating new sustainable banking and investment products and services, such as home improvement loans, carbon neutral banking and sustainable exchange-traded funds (ETFs),” notes KPMG.
Meeting the expectations of socially conscious clients and investors is not only about doing the right thing and serving the common good, but it is also good business. According to a PwC report, 7 percent of clients said they would “end my relationship with companies that do not treat the environment, employees, or communities in which they operate.”
Primarily empathetic in customer service and client interactions
Offering ESG-based products and services and demonstrating a social conscience go a long way in building brand image and customer loyalty. But banks can benefit if their commitment to ESG values is reflected in the customer experience.
Contact centers are on the front line of customer service and are tasked with delivering the best experience. When clients have questions, concerns, or complaints, they usually interact with the financial services institution’s contact center. Therefore, it is critical that financial institutions train frontline employees to handle sensitive situations, such as refugee crises or natural disasters, with as much empathy as possible. Contact center agents must also be equipped with tools that enable them to effectively interact with and assist clients who may be upset or in distress.
Artificial intelligence-infused customer experience platforms that analyze intent and sentiment in real-time and provide contextual guidance to employees during live interactions help them connect with clients on a human level . By doing so, employees provide more than just help in that moment (critical as that is). They also strengthen the bank’s brand and build an emotional connection with clients that will pay lifelong loyalty.
With the right training and tools, contact centers can be a central element of a bank’s strategy to prove its commitment to ESG and build customer loyalty and trust.
In a world where consumers have more choices than ever, the value of loyalty has never been higher. To cultivate that loyalty, financial institutions can do important work for their customers if they:
- Recognize their social responsibility and play a more active, positive role in times of crisis and disaster
- Incorporate ESG principles into product and service development to align with client and investor values and expectations regarding socially responsible banking
- Prioritize the client experience through highly trained employees, intelligent contact center technology and AI-powered customer experience solutions that enable them to treat clients with empathy and care.
Bhavana Rana is director of financial services and insurance at Talkdesk.
