We’ve all been there — trying to do invoice factoring, getting approval for personal loans, and can’t find the nearest ATM. Or maybe we’re just trying to pay our credit card balance on time, but the website won’t let us log in.
Whatever it is, these are things that frustrate people daily in banking transactions worldwide.
High transaction fees
The recurring issue is that bank fees are too high. The problem is further exacerbated by the fact that they are not transparent, flexible, competitive, or easy to understand.
In most cases, customers have no idea what their transaction fees look like until they start using the service and get hit with a bill at the end of each month. It can be pretty frustrating for many people who don’t want to worry about extras when it comes time to pay off debts of their personal loans or save up for something special in the future.
Long and tedious paperwork
It’s a tedious and time-consuming affair when you have to go through opening a bank account to secure the best private student loan. You have to fill out several forms, submit them, wait for verification, and then only can you access your account. It takes anywhere between 2-3 weeks for this whole long process!
Inability to track transactions in real-time
In today’s world, many banks have adopted real-time tracking of transactions. However, there are still a lot of customers who don’t know about this facility and hence, experience pain points when tracking their transactions in real-time.
Providing information about your bank account to your customer in real-time is more important than ever before because it can help you set up alerts on specific bank accounts and avoid any fraud or theft from occurring later on.
Slow authentication process
Banks and financial institutions are revamping their customer-facing platforms and services to keep up with the trends in consumer behavior. According to a report by Forrester Research, “the future of banking is digital,” customers expect more from their banks than just convenient access to their money. They also want security that isn’t compromised by outdated authentication methods like passwords or pins.
Using biometric authentication, artificial intelligence (AI), smart authentication, or mobile authentication, you can authenticate your customers instantly without compromising security. If you have invoices that have a 30 to 90 days collection period and your business is struggling financially, look into invoice factoring.
Lack of clarity on loan approvals
One of the most significant pain points of banking transactions is the lack of clarity on approvals of personal loans. Many banks don’t give clear communication or information about the acceptance of personal loans, which can be very frustrating for customers. Banks should provide clear communication and information on the approval of personal loans to avoid such issues.
Long waiting queues at bank branches when it comes to transactions
When it comes to today’s banking transactions, the customer has a lot of pain points. The bank also faces similar issues. Imagine how many people arrive at a bank branch in the morning and leave only late evening? And what happens when they are asked to do simple work like obtaining a personal loan? They get angry and frustrated as they have other important work.
This situation is not suitable for either party involved: it is not good for customers, banks, or employees.
Banks need to understand the customer’s needs and make banking more user-friendly
Banks need to understand the customer’s needs and make banking more user-friendly. For example, some banks charge for transactions to be done online. It can be cumbersome for a customer who is constantly checking accounts online to see how much money is coming in and going out at any given time. If the bank charges $5 per transaction or $10 per month (or both), it adds up quickly!
Imagine if you are looking to refinance student loans or just a lot of money flowing through your account—you could end up paying hundreds of dollars per month on these kinds of fees alone. It doesn’t seem fair that banks are profiting from their customers while trying hard to grow their business ventures!
Banks should also focus on improving authentication processes because this is another pain point for many users today. Waiting in long lines at the bank or dealing with slow response times from call centers who don’t know how best to handle personalized questions about specific issues like fraud protection measures on debit cards versus credit cards is challenging.
Customer experience is key!
Overall, banks need to create a good customer experience through seamless and personalized interactions with their customers to retain them. Banks need to implement new strategies that will allow them to integrate their systems better to provide their customers with more self-service options, like online chat and live agents via mobile applications. Banks also need to keep up with today’s trends by providing better security measures such as password managers or additional layers of protection when accessing sensitive information.
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