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Patient experience

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What Is Patient Experience?

Patient experience, in the context of finance, refers to the overall journey and perception a client has when interacting with a financial institution or professional. It encompasses every touchpoint, from initial contact and onboarding to ongoing service, investment management, and problem resolution. This concept belongs to the broader category of behavioral finance, as it delves into the psychological and emotional factors influencing client satisfaction and retention. A positive patient experience is crucial for building trust, fostering long-term relationships, and encouraging client loyalty within the financial services industry. Academic research highlights the importance of enhancing customer satisfaction and experience in financial services.20, 21

History and Origin

While the concept of "patient experience" has long been prominent in healthcare, its application and recognition within the financial sector have evolved more recently. Historically, financial services focused primarily on product performance, returns, and transactional efficiency. However, as markets matured and competition intensified, financial institutions began to understand that client relationships extended beyond mere transactions. The shift towards a client-centric approach gained momentum with the rise of consumer advocacy and the recognition that customer satisfaction directly impacts business success. Early discussions in service management and financial services management, recognized customer satisfaction, but patient experience (or customer experience) as a distinct, integrated concept has become more widely acknowledged over time.18, 19

Key Takeaways

  • Holistic View: Patient experience considers the entire client journey, not just individual transactions.
  • Emotional Impact: It acknowledges the psychological and emotional aspects of financial interactions.
  • Relationship Building: A positive experience is vital for cultivating strong, lasting client relationships.
  • Industry Shift: Financial institutions are increasingly prioritizing patient experience to differentiate themselves.
  • Beyond Performance: While financial performance is key, how clients feel about their interactions is equally important.

Interpreting the Patient Experience

Interpreting the patient experience involves understanding both objective and subjective factors. Objective measures might include response times, the clarity of financial statements, or the ease of using digital platforms for account management. Subjective interpretation focuses on the client's emotional state, their sense of trust, whether they feel understood, and their overall satisfaction with the service received. For instance, a client's risk tolerance and investment objectives are "essential facts" that financial professionals are required to know and use to make suitable recommendations, which directly impacts their experience.17 Firms are encouraged to consider a "dynamic total journey" of the customer rather than static satisfaction measures.16

Hypothetical Example

Consider Sarah, a new investor opening a brokerage account with "DiversiWealth." Her patient experience begins with the online application process. If the process is cumbersome, requires excessive paperwork, or lacks clear instructions, her initial experience might be negative. Conversely, if it's streamlined, intuitive, and offers immediate assistance via a chatbot or live representative, her experience is positive.

Next, Sarah has her first meeting with a financial advisor. A positive patient experience here would involve the advisor actively listening to her financial goals, clearly explaining different investment products, and patiently answering her questions about market volatility. If the advisor rushes the conversation, uses excessive jargon without explanation, or pushes products that don't align with her expressed needs, her patient experience would be poor. Over time, consistent, transparent communication, regular portfolio reviews, and responsive support for any inquiries, such as those related to capital gains or tax planning, would contribute to a continually positive patient experience.

Practical Applications

Patient experience is a fundamental consideration across various facets of the financial industry. In wealth management, advisors strive to provide personalized service, clear communication, and empathetic guidance, especially during periods of market uncertainty. For example, during times of high market volatility, investors may feel apprehension, and advisors who can patiently address concerns and maintain a long-term perspective can significantly improve the client's experience.15,14

In retail banking, this translates to user-friendly mobile apps, efficient branch services, and responsive customer support. The adoption of digital financial services, for instance, significantly impacts customer experience in the banking sector, with ease of use and system dependability being critical factors.13 Regulatory bodies also play a role; for example, the Financial Industry Regulatory Authority (FINRA) requires broker-dealers to "know your customer" (KYC) to ensure that investment recommendations are suitable and to prevent financial exploitation, particularly of senior investors. This "Know Your Customer" rule, FINRA Rule 2090, directly impacts the patient experience by ensuring that financial firms gather and retain essential facts about their clients, including their financial situation, investment objectives, and risk tolerance.12,11 This rule operates in conjunction with FINRA Rule 2111, the "suitability rule," which further mandates that recommendations are appropriate for the customer's investment profile.10

Limitations and Criticisms

One limitation of focusing solely on patient experience is the potential to prioritize superficial satisfaction over sound financial outcomes. For instance, an advisor might hesitate to deliver necessary but unpopular advice (e.g., cutting losses on an underperforming asset) if they fear it will negatively impact the client's immediate experience, even if it's in the client's long-term financial well-being. Additionally, measuring patient experience can be challenging, as it often involves subjective feedback that can be influenced by recent market performance or personal biases. While financial institutions are increasingly investing in improving customer experience, some academic research indicates a gap between academic studies on customer experience and the actual industry directions in financial services.9 The inherent impatience of investors, often driven by emotions like fear and greed, can also lead to irrational decisions that a financial institution, despite its best efforts to foster a positive experience, may not be able to entirely counteract.8,7 This highlights the interplay between investor psychology and market dynamics.6,5

Patient Experience vs. Customer Satisfaction

While often used interchangeably, "patient experience" and "customer satisfaction" have distinct nuances in the financial context.4 Customer satisfaction typically refers to a snapshot assessment of how happy a client is with a specific interaction or service. It's often measured through surveys after a transaction and can be short-term and transactional. For example, a client might report high satisfaction with a quick wire transfer service.

Patient experience, on the other hand, is a more holistic and ongoing concept. It encompasses the sum total of all conscious events and interactions a client has with a financial brand over time, including their feelings and perceptions throughout their entire "dynamic total journey."3 It considers the emotional and psychological aspects of the relationship, aiming to build client loyalty and trust over the long term. A client's satisfaction with a single transaction might be high, but their overall patient experience could still be negative if they consistently feel unheard, misinformed, or disconnected from their financial advisor. Therefore, patient experience is a broader, more comprehensive measure of the client-firm relationship than customer satisfaction.2

FAQs

Q: Why is patient experience important in finance?
A: Patient experience is crucial in finance because it helps build trust, fosters long-term relationships, and encourages client loyalty. A positive experience can differentiate a financial institution in a competitive market and lead to increased client retention and referrals.

Q: How do financial institutions measure patient experience?
A: Financial institutions measure patient experience through various methods, including client surveys, feedback forms, net promoter scores (NPS), analysis of client retention rates, and monitoring of complaint resolution efficiency. They also evaluate the ease of use of their digital platforms and the responsiveness of their customer service teams.

Q: Can technology improve patient experience in finance?
A: Yes, technology can significantly enhance patient experience in finance. Digital tools, such as intuitive mobile banking apps, online portfolio management platforms, and AI-powered chatbots, can provide convenience, faster access to information, and personalized insights, all of which contribute to a more positive overall experience. However, the human element, such as a responsive financial advisor, remains vital.

Q: Does patient experience directly impact financial performance?
A: Research suggests a strong correlation between enhanced customer experience and improved financial success for banks, leading to increased profitability and higher retention rates.1 A positive patient experience can lead to greater client satisfaction, which in turn can result in higher assets under management and a stronger brand reputation.

Q: What is the role of communication in patient experience?
A: Effective communication is paramount to a positive patient experience. Clear, transparent, and regular communication from financial professionals helps clients understand their investments, market conditions, and any changes to their financial plans. Being responsive to client inquiries and proactively providing relevant information can significantly enhance a client's feeling of being valued and understood. This includes explaining complex concepts like diversification and asset allocation in an accessible manner.