Historically, banks have been heavily siloed operations where online and in-branch teams have different goals, initiatives, systems, etc.
Ultimately, this results in a fractured core to the business, where motivations and views of the customer rarely align. This holds banks back from creating the kind of customer experience that other businesses have achieved (such as retail). Meanwhile, consumer expectations are sky-rocketing.
The three key areas that are affected by a siloed approach are:
A lack of information flow between departments (or offices) significantly hampers the ability to move the business forward. Many departments could be working on similar projects, or have cross-over that could enable innovation and collaboration if there was more transparency.
The most high profile case of replicating workloads within companies came from Sony, who unknowingly had three departments working on personal MP3 players. Apple easily beat Sony to the punch with the creation of the iPod. This cost the company millions.
Broken customer experience
Overall customer experience can suffer as a result of a siloed company structure where there are poor cross-department communications.
Here's an example: An advertising campaign leads to a rush of calls, but the contact center was not informed of the impending campaign, so they're understaffed and underprepared. This means customers experience long wait times, give up on purchasing, and have a bad experience with the brand. What could have been a successful campaign is now considered a waste of time and budget.
A lack of communication between departments often means customers have to explain the reason for their interaction with the bank, which can lead to them moving to a competitor who demonstrates a coherent understanding of the customer and their journey.
Working in a siloed company often leads to internal competition and politics that are counterproductive to the growth and success of the bank.
With staff unable to see the wider company picture outside of their department or branch, each team is working towards different goals that are important to the success of the individual department, but not the bank overall.
So how does the retail bank overcome these problems and more posed by a siloed operation? Our latest whitepaper breaks down these issues and outlines ways to tackle them. Get your copy here!