Hit enter to search or ESC to close

logo-block
alva
Get in touch
logo-block-tablet

Three lessons from banking glitches – “why should I stay with you?”

Banks have been given short shrift recently by customers in the wake of online banking outages in 2015. Besides temporarily denting product advocacy, the issue is morphing into a reputational issue, with customers hostile to repeat offenders and, more crucially, unappeased by the casting of online banking outage as a technical error or “glitch”*.

In response, banks often enlist their Twitter response team reserves and explain the event in terms of “a few glitches”. Yet the question that customers are really asking is much weightier: “why has my right to uninterrupted access to my money been infringed?” Given the perceptions of stakeholders are paramount to reputation, alva’s analysis of banking glitches in January-June 2015 reveals three key lessons in responding to customers:

1: Use appropriate language. A glitch is no longer just a glitch.

alva’s data towards banks and building societies affected by outages shows they are no longer treated as an innocuous “glitch” but instead are tantamount to negligence which results in the withdrawal of the customer’s right to his or her money. Avoiding phrases like “a few glitches” can help avoid a perception of playing down the impact of the event on customers.

marketing 1

2: Remove ambiguity as soon as possible.

As with the introduction of new payments technology Paym and Apple Pay, ambiguity over when updates announcements are to be made can be a source of customer angst. This turns into “panic” when the uncertainty is around when access to the customer’s money will be restored. Regular and scheduled update announcements are a way of stemming criticism.

marketing 2

3: Provide future reassurances.

Online banking outages have recently struck at the most inopportune times and precedent shows that no bank is immune to such an event. Moreover, as branches close and customers come to rely on online banking as their main channel for account management, anxieties around the reliability of online payments are set to rise – a clarion call for banks to provide reassurances to their customer bases reflective of the reputation risk such events harbour, and commensurate with actions being taken.

marketing 3

*H1 2015 alva data

 

See more articles
Join our Newsletter

Be part of the Stakeholder Intelligence community Join our Newsletter

Join our Newsletter
Subscribe Now

Sign up to alva’s resources

Subscribe Now

alva's research into the 2020 reputation ranking of UK supermarkets featured in Retail Times this morning.

Can the sector cement the reputational gains made in 2020?
#reputation #retail #supermarkets #stakeholdercapitalism #esg
https://t.co/dhdOFshJE5

The UK #Telco sector enters 2021 on a #reputational high, with a surge in scores across companies. Customer offers and charitable initiatives lift top performers, offsetting concerns over service quality and #5G #misinformation. 👉 https://t.co/lyST1hTdwA

Tesco Mobile, Vodafone and EE top the UK alva #Telco #Reputation index for year-end 2020, as customer offers, community-focused holiday initiatives and Covid-focused charity drives correlate with the strongest reputation performers. 👉https://t.co/lyST1hTdwA

Load More...

Be part of the
Stakeholder Intelligence community

To join our Stakeholder Intelligence community simply complete the form below.