Provident Bank is shifting its strategy to emphasize customer experience through simplicity rather than focusing on advanced technology solutions. This approach stems from a recognition that personal interactions remain vital, even in an increasingly digital world. Scott Hurlbert, senior vice president of digital channels, highlighted this philosophy following a relatable exchange with his daughter, who sought guidance on opening a high-rate money market account while away at college.
Transforming Customer Experience
Founded in 1839 in Jersey City, Provident Bank reported $24.83 billion in assets as of September 30, 2023. The bank operates more than 140 branches across New Jersey and parts of New York and Pennsylvania, alongside mobile and online banking services. In December, Provident announced new leadership appointments aimed at enhancing customer experience and driving innovation. This includes bolstering its technology and data leadership to support modern banking platforms.
Hurlbert explained that the bank’s strategy focuses on building a culture that fosters emotional connections with customers. “It starts from the top of the company to create the right culture, to create the right experience,” he stated in an interview with PYMNTS. He emphasized that while Provident may not outspend larger national banks, it aims to outserve them by making staff accessible and empowering them to assist customers effectively.
Adapting to a Competitive Landscape
Community banks like Provident have historically thrived on strong relationships. However, they now face the challenge of proving these relationships through seamless digital experiences. Research from PYMNTS Intelligence, in partnership with Velera, highlights that 36% of Generation Z members are likely to consider switching banks, compared to just 14% of consumers overall. This volatility underscores the need for financial institutions to adapt and meet evolving expectations.
Interestingly, 62% of Gen Z respondents expressed a willingness to utilize AI for financial planning, indicating a demand for instant guidance. Yet, a significant portion still values face-to-face interactions when seeking advice. Hurlbert noted that many young consumers have limited banking experience, making trust a crucial factor in their financial decisions.
Provident’s transformation plan prioritizes functionality over flashy technology. “It’s not because we’re trying to create an aura of technology,” Hurlbert remarked. The bank aims to ensure that technology, data, and digital initiatives are coordinated effectively. He stressed that without robust data management, the bank’s efforts could falter.
As part of its commitment to modernization, Provident has revamped its online onboarding process, making it straightforward and efficient. Customers can now initiate account setups digitally and complete them in person without redundancy. Hurlbert aims to enhance the bank’s bill payment experience and is currently working on a new mobile application expected to launch within the next 12 months.
In contrasting Provident’s approach with that of larger institutions, Hurlbert criticized their tendency to experiment without clear direction. “Big banks try everything and see what sticks,” he explained. Such practices can leave customers feeling lost, particularly those who require consistent service and stability. “What we can do is be their trusted advisor,” he added, underscoring the bank’s commitment to building lasting relationships.
As Provident embarks on a core banking conversion, Hurlbert believes this foundational change will facilitate future enhancements. “You can’t stand still,” he asserted, indicating that the bank is committed to evolving its services to meet changing customer needs. Through this transformation, Provident Bank aims to solidify its role as a reliable partner in the financial journeys of its customers.