Provident Bank's Strategy: Simplicity Over Shiny Tech
A simple text message from his daughter sparked a profound realization for Scott Hurlbert, senior vice president of digital channels at Provident Bank. It highlighted the essence of customer experience: it's personal, and it starts with trust.
His daughter, away at college, sought guidance on opening a high-rate money market account. This everyday scenario underscores a fundamental truth: even digital natives prioritize trust and simplicity. They seek the fastest, most straightforward path to their goals, be it financial security or convenience.
This blend of human trust and digital convenience is the guiding principle behind Provident Bank's latest transformation. Founded in Jersey City in 1839, Provident has grown to manage $24.83 billion in assets as of September 30. They serve customers through over 140 branches across New Jersey, New York, and Pennsylvania, as well as mobile and online banking platforms.
In December, the bank announced strategic leadership appointments and promotions aimed at enhancing customer experience and fostering innovation. This includes bolstering technology and data leadership to ensure a seamless and secure digital experience.
The bank's strategic moves encompass several key areas. Firstly, they've expanded their senior leadership in technology and data analytics, enabling them to securely manage modern platforms and build a robust data-driven culture. Secondly, they've aligned technology with business objectives, ensuring it serves the organization's needs rather than dictating them.
Hurlbert emphasizes the importance of culture in this transformation. He believes that creating the right culture, experience, and emotional connection with customers is paramount. While acknowledging that Provident won't outspend national banks, Hurlbert asserts their commitment to outperforming them through exceptional service.
This focus on service is reflected in Hurlbert's philosophy of making people accessible and empowering them to solve customer problems. He contrasts this with the rigid procedures and red tape often found in large organizations, emphasizing the importance of a human touch in banking.
Community banks have long relied on relationships, but now they must prove their worth through digital experiences that rival those of national banks, despite their limited technology budgets. Research from PYMNTS Intelligence and Velera reveals the volatile loyalty of Gen Z, with 36% considering leaving their institution compared to 14% of the general population.
Gen Z also demands instant, interactive guidance, with 62% open to using AI for financial planning. However, they still value in-person engagement, with nearly half preferring it when seeking advice. This generation also prioritizes digital onboarding and open banking, highlighting the need for innovation in the industry.
Provident's transformation plan is not driven by technology for its own sake. Hurlbert emphasizes the importance of coordinated data, digital, and technology efforts, stating that without data, their initiatives would fall flat. They carefully evaluate FinTech partnerships, prioritizing integration with their core banking environment to ensure success.
One concrete example of their approach is account opening. Provident streamlined the online onboarding process, making it quick and easy, and seamlessly integrated it with their branch services. This allows customers to start the process digitally and complete it in person without repetition.
Hurlbert criticizes large institutions for their endless experimentation, which can sometimes lead to customer inconvenience. He believes Provident's role is to be a trusted advisor, offering stability and guidance to business clients. Their core banking conversion and bill payment experience enhancements aim to solidify this trust.
Looking ahead, Provident is focused on continuous improvement. Hurlbert emphasizes the need for constant evolution, stating, 'You can't stand still.' They are actively seeking a new mobile app and revamping bill payment to enhance customer experience.
