Creating customer loyalty in the banking sector: the role of legal services

Happy family on rugFinancial and legal services are often inextricably linked at important life events, such as getting married, setting up home, having children, getting divorced, or buying or selling a property. These are all points at which individuals might need a financial product – a loan or mortgage, for example, or help with managing their day-to-day finances. The same applies for small businesses which will encounter many moments throughout their development which require specialist financial and legal help.

For banks and building societies, these life events provide a valuable opportunity to offer their customers a more connected service; one which is tailored and transparent and caters for legal as well as financial needs.

And as consumers – both individuals and SMEs – are becoming more used to personalised products and experiences, the need for the financial sector to improve their customers propositions has become essential if they are to create customer loyalty and increase share of wallet.

Digitalisation too has become an important factor in the development and delivery of products and services, as a new generation of tech-savvy consumers reach the age when they need financial and legal services and expect immediate online access.

Why legal services?

As we’ve mentioned above, there are often times when the provision of a financial service can be enhanced by a related legal product. For example, customers needing a loan to build an extension on their house will also benefit from a professionally-drafted contract to protect their interests when dealing with builders. Likewise, couples setting-up a joint bank account could be offered a cohabitation agreement or if they have children, a Will.  For a  buy-to-let mortgage customer, a suite of relevant legal documents will help ensure compliance with landlord and tenant laws, and a travel insurance customer could get help in claiming compensation for a flight delay.

The availability of these services from a single point significantly enhances the customer experience, especially when delivered online or via the phone. It also makes access to legal services much more affordable for consumers, many of whom think law firms are expensive and inaccessible.

For the bank or building society, offering legal services alongside a financial product not only demonstrates a commitment to giving customers great value, it also enables regular and – crucially – relevant communications which help to build customer loyalty and lifetime value.

To find out more about how to provide our legal services alongside financial products, please call us on 020 8731 2424 or email emma@epoq.co.uk.