The banking sector regularly tries to influence the actions of its customers by sending a lot of information to gadgets and e-mail. But financial workers need to consider that their users make decisions regardless of the amount of data.
It is necessary to change its habitat and not try to change the plant itself to influence the development of the plant. And the banks are trying to change the plant.
Reasons for obstacles
Every business experiences different challenges depending on its growth stages. The disagreement of customers with banking offers is associated with a change in the conduct of business and the chosen strategies of users.
It is a fundamental factor in the relationship between the financial sector and its users.
Various banking systems go to great lengths to entice customers with their offers, using their strategies and economic terms, often incomprehensible to most users. Financial services should pay more attention to how the user audience thinks.
Studies have shown that clients make logical or non-logical decisions based on their experience, advice from friends, and financial offers directly from bank employees. Many decisions are made in the part of the brain that is responsible for emotions and intuition.
Most users have their own biases that contribute to the final decision. Based on this, it follows that many users are illogical, using their own emotions and impressions in using the services offered.
Financial managers think they could use only some of this in the interests of their financial institution.
Instead of trying to change the situation logically, one can establish an understanding between the financial system and users related to it, considering the client audience’s mental abilities and emotional state.
Five Most Common Barriers To The Development Of The Financial System
Let’s consider the 5 most common obstacles that hinder mutual understanding between the banking system and the client audience. Also, you’ll get the real advice on how you can avoid them.
1. Predisposition to adverse events
Most people leave in their memory a negative experience that brings negative memories – the bad is remembered more clearly, due to the negative experience.
Users with negative experiences will initially treat other financial institutions with prejudice. Therefore, such a client will be difficult to service for bank employees.
Example:
The client who came to the bank must open an account at the branch, but due to the employee’s problems (problems in the computer system, confusion in the documentation), they waited a long time for the operator.
Deciding to open a bank account in another branch, the user will be pre-set negatively, assuming there will be registration delays.
Solution:
The bank employee needs to have the opportunity to find out what situations the user had in the past.
But they will be able to recall various adverse problems in the branch and try to minimize or completely prevent them (provide the opportunity to open a bank account on a financial institution’s website).
2. Working conditions and environment
This problem implies that people are predisposed to view the situation from personal experience.
The problem arises when bank employees communicate with customers using specific financial terminology instead of trying to explain it intelligibly. It leads to incorrect user expectations and misunderstanding of the situation.
Example:
The client visited the bank to resolve the issue of saving or accumulating funds with the help of interest deductions.
Bank employees, explaining, use terms like a certificate of deposit, treasury bills, and interest rates of income. But the user hears the words for the first time, leading to misunderstandings between the parties.
Solution:
Users in everyday life do not encounter financial terminology. Therefore, bank employees are advised to use in their explanations the formulations that are accessible to the majority and to reveal to the client the meaning of concepts as much as possible.
3. The law of triviality
This problem is related to the predisposition of most users to give disproportionate importance to everyday issues – important issues are not emphasized, but insignificant trifles are repeatedly discussed.
Example:
The user must fill in many incomprehensible columns for a mortgage loan. Therefore, most clients focus on non-essential items, skipping virtual queues.
Solution:
Explain the main points to the client intelligibly so that they pay attention to the main thing and do not fix their attention on the little things.
4. Crop effect
The situation depends on what area the client is in – positive or negative. The choice depends on the success of 90% or the failure of 10%. This central bias influences the choice of solution.
Example:
The user received a message about saving $3 per day. But they have yet to learn of the economy as a whole.
Solution:
It is necessary to send a complete message indicating the month’s or quarter’s savings.
5. Status quo
The user perceives changes as a specific risk. This problem exists in banks and among users with a reluctance to introduce innovative technologies. It is perceived as a deviation from the accepted standards.
Example:
Reluctance to use the mobile application, visiting the department systematically.
Solution:
The advertised application will not affect the user, so information (instruction) is needed to reduce the risk and financial costs when using it.
You won’t be able to avoid all biases. Still, it’s entirely possible to make the most of it with the help of detailed information content, as well as learn to recognize past negative situations of users.
