Customer Experience

Updated On: Apr 1, 2024

How To Overcome Customer Service Challenges In Banking?

Reading-Time 7 Min

In the banking and financial sector, customer service is the main traction. Advertising aside, customer executives need to build on a good customer experience. As we move into a new decade, trends are that more millennials and gen-z will open a primary bank account.

banking customer service challenges

At Least 50% of people under 35 will open an account or prefer a particular bank because of friends or family recommendations of the services. A great way to retain existing customers and get new ones on board is through great customer service. Customer service is very challenging in the BFSI sector, but there are ways to overcome them.

Top 4 most common customer service challenges in banking

The customer service in the BFSI is constantly about better services to customers. Phone calls might be one of the best and most trusted methods by BFSI clients to resolve queries regarding a transaction.

1. Data confidentiality

The majority of trust comes from a customer when their data is protected. Banks or other financial institutions deal with a lot of personal information from customers. As important as collecting this information and verifying it from the client is, it is equally important to make sure this information is secure on the bank servers.

If there is any fault or lack of protection from the bank’s side then it is guaranteed that the customer will not continue services the next time. It is only an assurance that it will work.

2. Availability of executives

Banking services are crucial for any customer seeking them. While dealing with difficulties in the application or wanting to find out a process to check information with the bank, customers expect that their queries will be resolved as quickly as possible.  

Any place dealing with transactions is important but customer executives cannot be at all places at all times. This means waiting time, especially on a phone call. The later you solve a customer’s problem the less impression the customer will have of the services.

3. Personalised experience

For a nice customer experience, the bank or financial organization dealing with the customer having their previous details about the services availed would make the otherwise long phone call shorter.

The problem could be that most executives have no secure access to clients’ data online that they can look at online. Or have glitches in the system or data silos in place preventing them from access to information. This makes it a challenge as it will increase call time to collect customers’ information all over again.

4. No omnichannel presence

With a lot of millennials using BFSI services now, they dislike it the old-school way. Other than this a lot of customers like to have queries resolved from home. Reducing traveling except for really urgent or unavoidable purposes is the way preferred now.

If your services are not present online then it is a challenge and it would make it hard for customers to comply with your part of the bargain to get their activities done.

Ready to resolve these challenges?

Try Knowmax AI-powered knowledge management system for your customer service challenges.

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How does knowledge management software help in overcoming customer service challenges?

The challenges in the BFSI sector are ever-present. However, change can be brought in customer service. Customer service is an established way of how your customers perceive the importance given to them. Following are ways knowledge base software helps deliver exceptional banking customer service

High data security

With any knowledge management comes trust and security. A knowledge base software has data encryption that is a match to no other. There is the authorization of all data placed, with security keys given to each customer executive.

Common organizational data can be made accessible to all. Other than that, there is selective access to files, especially those that have customers’ confidential information. These can be selectively given access to those dealing with the customer’s case.

Ultimate executive guide

Having a knowledge base management system makes a customer executive’s job easier by a fold. The software has the inclusion all guides from decision trees, to articles and picture guides to help the executive look for information and grasp it quickly.

This helps reduce the Average Handle Time (AHT) of calls as the correct information is within reach, especially when needed. A knowledge base can also be integrated with existing apps for more access to knowledge, like integrating CRM into the knowledge base for customers’ transaction details.

Self- service

Using a knowledge base software helps extend organization information that is useful to the customers on the website or other digital platforms. This could help with call deflection at call center.

Nowadays customers prefer to look for solutions themselves, In the case of banking services, it could get a little tricky. A customer can be helped through FAQs on the bank’s portal, if this helps solve the issue then the number of calls to the contact center would be significantly reduced.


A knowledge base software is not just about speed but also about having the correct information at all times. When all of the organization’s information is stored in one place it is indeed a difficult process to go over all the details of each document stored.

Here is where AI helps a knowledge base. Using Artificial Intelligence helps go over all the data and helps detect patterns or helps organize all data and see if all versions are created of a particular article. Then once detected information can be edited, formatted, or deleted accordingly.

Personalized services

In the BFSI sector, it is important to make sure that the customer feels valued. Other than giving exceptional customer service, you can provide a great personalized experience by tracking the customer’s journey using AI.

Automatic updates can be sent after studying customers’ data on the knowledge base and updating customers on plans that they would most likely take depending on the phase of life they are in, be it the kind of loan they take or other investments.


Dealing with customers in financial organizations or the BFSI sector is obviously never going to end. The means might change but the need for a better-personalized service with high relevancy and data protection is the way to go about it now and later in the future.

Even with changes coming in and going, knowledge management software will ease your financial organization’s burden on heavy call numbers to solve problems. Having a knowledge base makes customers and executives solve problems faster with accuracy and a high-resolution rate.

Pratik Salia


Pratik is a customer experience professional who has worked with startups & conglomerates across various industries & markets for 10 years. He shares latest trends in the areas of CX and Digital Transformation for Customer Service & Contact Center.

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