The most personal reminder about customer experience came from a text his daughter sent. Since she wasn’t heading to college, she wanted to make a wise choice with her savings. Something like investing seemed smart. Many young adults start exploring high-yield savings around this age.
“Dad, I think it’s time to get a high-interest money market account. What do you think I should do?” she asked.
This exchange highlights what banks often overlook. Even if you’re tech-savvy, it all begins with trust and finding the quickest, easiest way to take action.
The combination of human trust and digital ease is what drives innovation, as seen in Provident Bank’s recent initiatives. Established in Jersey City in 1839, Provident has assets worth $24.83 billion as of late September and operates over 140 branches across New Jersey, New York, and parts of Pennsylvania, alongside their mobile and online banking services.
In December, the bank announced leadership appointments aimed at enhancing customer experiences and fostering innovation, with a focus on technology and data.
Overall, this strategic move equips banks with better capabilities to manage modern systems, strengthen data and analytical frameworks, and ensure technology aligns with business needs.
Hurlburt, the senior vice president of digital channels at Provident, concurs with this approach. He’s all for cultivating a workplace culture that values connection and community, which can lead to a competitive edge.
“The journey to forge emotional ties with customers starts at the top,” he stated. “While we may not have the budget to outspend a national bank, we’re focused on outserving them.”
For Hurlburt, “outserve” is more than just a strategy; it’s about simplifying ways for customers to connect with staff and resolve issues.
“By ensuring our customers can easily reach our employees, we’re setting them up for success,” he noted, acknowledging that larger organizations often create barriers with excessive procedures.
Elements of Relationship
Community banks have been vying for relationships for years. They now need to validate those connections through digital platforms that are as user-friendly as popular apps. This is especially crucial when competing against larger banks that can afford extensive tech investments.
Research from PYMNTS and Velera revealed that young people’s loyalties are quite unstable. The study indicated that members of Generation Z are more inclined to consider switching banks compared to a broader audience.
Interestingly, 62% of Gen Z participants expressed interest in utilizing AI for financial planning, suggesting they expect instant, interactive assistance. Yet, they also prefer face-to-face advice almost half the time when seeking guidance.
This data also highlighted that Gen Z is more proactive in seeking products than the average customer, especially when it comes to digital onboarding and valuing open banking. The competition in technology is reshaping access to innovative solutions.
Additionally, research shows that partnerships with credit unions have risen nearly 19% year-over-year, while collaborations with national banks have dropped over 50%. This trend underscores that smaller financial institutions are becoming the preferred avenue for introducing new tools.
“Gen Z tends to be less bank-dependent,” Hurlburt remarked.
Due to their lack of experience, trust shifts from being an emotion to more of a trait. When uncertain, they might feel the need to speak with someone to verify their decisions.
According to Hurlburt, Provident’s transformation isn’t about pursuing technology for its own sake. “We’re not trying to impress anyone with flashy tech or chasing after every new trend,” he emphasized.
As technology roles evolve, data, digital, and tech must work in unison.
“Without data, we undermine our goals,” he mentioned. “Everything needs to progress in a coordinated manner.”
He also values collaborations with fintech companies.
“The first question should be, ‘Can this integrate into my core banking system?'” Hurlburt advised. “If the answer isn’t a clear yes, caution is warranted as these initiatives can fail if handled independently.”
One practical change has been in the account opening process. Provident has overhauled its online onboarding to ensure it’s “very quick and easy,” allowing customers to start online and finalize their applications in person without redundant steps.
Competition with National Banks
Hurlburt critiques large banks for having the grace of endless trial and error, often at their customers’ expense.
“Big banks experiment with everything, discontinuing what doesn’t work,” he noted. “This can leave customers, especially businesses requiring stability, feeling lost. Our role is to be their trusted guide, avoiding haphazard tests.”
As the year progresses, Hurlburt mentioned that Provident is undergoing a transformation of its core banking functions, which will serve as a foundation for future enhancements.
Furthermore, Provident is reworking its bill payment process to ensure greater usability and is planning a new mobile app in the next year.
“Keep pushing forward,” Hurlburt advised. “What worked before won’t lead us where we need to go.”
