Recent surveys show about half of financial institution staff are considering leaving their jobs, largely due to outdated systems that bog them down with administrative tasks. By investing in modern, integrated technology platforms, these institutions could simultaneously solve both their employee retention and customer engagement problems. The solution lies in streamlining processes like account opening and identity verification while leveraging data analytics to enable more personalized service.
Bank and credit union leaders recognize that improved technology — especially better integration across channels and products — can deepen customer engagement, especially at critical moments such as account opening. But what fewer leaders recognize is that the same investment can also drive significant improvements in employee satisfaction and productivity.
The fact is, outdated systems and fragmented processes don’t just frustrate would-be customers and members, they also place a major drag on your employee relationships. Impacts can range from high staff turnover rates to missed opportunities for business growth — exactly the kind of growth that would inspire and reward your most ambitious team members.
Industry data highlights the problem’s immediacy. Some 52% of financial institution managers and 49% of staff say they are considering leaving their jobs within the next year due to low satisfaction, according to the fifth annual International Branch Banking Employee Survey. And nearly half of those employees say their discontent stems from time spent on administrative and operational tasks instead of customer service.
More pointedly, the survey found that the No. 1 complaint among bank employees is working with antiquated systems that complicate their work. Nearly 80% say they want modern tools that integrate seamlessly into their workflows, reduce non-customer-facing tasks, and enable them to deliver services that match today’s customer expectations.
‘ ‘The challenge is improving the customer experience to streamline the process for both customers and team members,” said Dinesh Kale, VP of Engineering and Product Management at Candescent Account Opening, one of an emerging cohort of providers that aim to integrate processes such as identity verification, fraud prevention, workflow automation, personalization, and cross-selling.
Kale cites the seemingly simple example of using a customer’s mobile number to pre-fill an application. “Trends like AI and large-language models that offer natural language-based account opening are aimed at making the process smoother for customers while empowering team members to perform at their best.”
Kale points out that in addition to the frustration for staff in trying to do their jobs, is that when employees do leave, difficult technology only makes it harder to onboard new team members. “Reducing training time minimizes the impact when a team member leaves,” he said.
Dissatisfaction Goes Viral
These technology gaps aren’t abstract problems — they manifest in day-to-day situations that both employees and customers experience all too often. Here are two scenarios that illustrate how outdated technology and fragmented processes impact both groups:
- A customer starts a mortgage application online and submits their documents through the bank’s portal. Later, they visit a branch to inquire about the status, only to find out that the branch staff cannot access the online application. Both the bank staff and the customer have to start over from the beginning.
- A customer contacts the bank’s chatbot to resolve a billing issue and is told the problem needs human intervention. When transferred to a call center agent, the agent has no access to the chat history and asks the customer to explain the issue from the beginning. The customer is, understandably, annoyed.
Most financial institutions look at such scenarios as the cost of doing business; if a customer moves to a new bank, it’s churn — not a good thing by any means but at least a known problem. Less often do they see the other side of the equation:
In the case of the would-be mortgage client, the branch employee is left with two unhappy tasks: First, they must win back the trust of a grumpy customer, patiently leading them through a manual application they’d hoped to avoid in the first place. Then, after the customer leaves — or perhaps while they wait — the team member must turn to the document scanning and manual cross-checking necessary to complete the application.
For the call-center agent, in the second scenario, the risk of morale blowback is perhaps greater. Lacking visibility into the caller’s previous interactions, they face the challenge of building rapport with an already frustrated customer, which increases call handling time and pressure to meet performance targets like first-contact resolution and improved customer satisfaction scores.
Personalization goes a long way to smoothing every customer interaction, and leads to greater sales performance, which feels great to an employee.
“It’s not enough to just have the technology in place for members to pick and choose the products they want,” said Gene Fichtenholz, VP, Digital Strategy & Engagement at Meriwest Credit Union. “You have to demonstrate to them that you took note of the products and services that they researched and have yet to obtain, or where improvements have been made and how it best benefits them.”
For Fichtenholz, whose institution has deployed Candescent’s solution, the key is to have the right data in the right place at the right time to steer the member to the next step in the process.
Productivity Amplifies Satisfaction
The employee productivity costs of outdated technology are substantial, including time spent on manual, non-customer-facing tasks such as data entry, compliance reporting, and rework caused by system errors. These inefficiencies reduce the time available for high-value activities like relationship-building and advisory services. As a result, institutions may face longer transaction times and declining customer satisfaction scores — two metrics directly tied to both branch and call center performance.
Modern, integrated systems can turn these challenges into opportunities. Digital platforms that consolidate customer data and automate workflows allow employees to focus more on personalized service and cross-selling opportunities. A McKinsey report found that banks implementing AI and automation for back-office processes achieved productivity gains of 20–30%, along with notable improvements in customer engagement. For instance, automated loan processing systems reduce both the administrative burden and wait times, enabling faster approvals and giving relationship managers more time to offer tailored financial solutions.
Technology can also improve scalability. For example, in the mortgage application scenario described above, workflow automation that reduces the time required for repetitive processes like loan underwriting and compliance checks can enable higher transaction volumes with fewer errors. By eliminating bottlenecks and optimizing resource allocation, financial institutions can improve overall throughput, better handle peak demand periods, and ultimately drive more revenue per employee.
Connectivity Equals Better Data
Many financial institutions overlook a significant opportunity hidden in their own data. Consider this: 68% of customer digital applications are abandoned, yet most banks and credit unions fail to analyze this data for meaningful insights. Simply identifying where and why these drop-offs occur could help reduce abandonment rates — but few banks or credit unions even take that basic step.
The potential goes far beyond just fixing broken processes. With a more strategic, data-driven approach, financial institutions could transform abandonment data into a powerful growth tool. For instance, by analyzing incomplete mortgage applications by zip code, institutions could route warm leads directly to local branch teams, turning abandoned applications into opportunities for personalized follow-ups. Instead of viewing data through narrow silos — such as separating deposits, loans, and credit cards — a unified data strategy would empower branches with actionable insights, leading to stronger customer engagement and increased conversion rates.
This potential applies to business banking as well, where account opening often involves multiple in-person visits and extensive paperwork. By integrating digital tools — such as remote document submission and electronic signatures — banks could streamline the process, enabling faster onboarding with fewer in-branch appointments. This not only improves client satisfaction but also allows staff to focus on higher-value services — not to mention relationship-building — driving engagement and growth.
Data can also be leveraged to anticipate customer needs and proactively offer relevant services. By analyzing patterns across abandoned applications, transaction histories, and product inquiries, financial institutions can identify customers who may benefit from tailored financial solutions. For example, a customer who starts but doesn’t complete a home equity loan application might be a prime candidate for targeted follow-up with alternative lending or refinancing offers. One study found that companies excelling at personalization generate 40% more revenue from those activities than average players.
The message is clear: With modern, integrated systems and data-driven strategies, banks and credit unions have the opportunity to create new revenue streams and growth opportunities, while empowering employees to do what they do best: deliver exceptional, personalized service. By optimizing onboarding processes, streamlining internal operations, and enabling proactive engagement, your institution can convert everyday frustrations into competitive advantages.
The 2024 PwC Global Workforce Study puts it this way: “Workers and CEOs are on the same page when it comes to red tape, wasted time and organizational friction at work.” Both leaders and employees say that 40% of the time they spend on administrative activities is being spent inefficiently — and both believe technologies like AI could help free up that time.
Leaders who embrace this opportunity will not only improve the customer experience but also position their organizations to scale efficiently, eliminating the friction and frustration that are weighing down their operations.
Source: THE FINANCIAL BRAND
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