Empathy in Financial Services

The Empathy Fix – Using an 'E-Score' to monitor and drive great customer relationships in service organisations

ARTICLE SUMMARY

What is empathy worth? And how can it be leveraged?

Amongst the most profitable in world, with an average return on equity of 14%, Australian banks enjoy a privileged position, in part thanks to regulators having favoured stability at the expense of competition. However the tides are changing, with the recent Hayne Royal Commission highlighting the loss of public trust in the banking sector, making it clear that Australian banks are faced with increasing expectations to “do the right thing” if they are to rebuild trust, and maintain their social license to operate.

Customer trust is a function of credibility, reliability and empathy, discounted for the self-interest of the organisation. Of all the core components, SPP observes that empathy is often the most challenging component for organisations to foster. With organisations paying a high price for getting this wrong, empathy is certainly worthy of attention.  Improved customer experience, more engaged and motivated people, and an ability to respond appropriately and effectively to public concerns are distinct benefits of getting empathy right.

SPP’s E-Score offers a structured mechanism for organisations to diagnose and measure empathy, to drive pragmatic improvement and interventions across multiple organisational dimensions to build trust among customers and staff.

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Empath in FS

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