Institutions need to become more customer-centric; product silos need to be broken down so customers can be served effectively at their first point of contact rather than handed off. This means sharing data across product lines and knitting together different IT systems.
Greater IT integration means data could be retrieved in real time and customer behaviour better analysed for marketing purposes. Such integration is also a cultural challenge - accepting that a customer's value may shift across the business and incentivising staff to share data for the overall good.
Equally, while most institutions recognise the importance of customer-facing staff, they accept service can be deficient. Rewarding performance on non-financial metrics such as customer satisfaction and loyalty should help.
Winning the battle for growth: building the customer-centric financial institution,
PricewaterhouseCooper/Economist Intelligence Unit, May 2006
Review by Steve Lodge