Why Banks and Telcos Prioritize Revenue Over Customer Experience

Keywords: Banking app downtime, Telco service failure, Customer experience in finance, Digital banking reliability, Financial service communication.

Introduction

In the modern digital economy, mobile applications and online platforms are no longer luxuries; they are essential infrastructure for daily life. From purchasing groceries and paying for transport to booking flights and accessing emergency medical funds, these systems are the backbone of financial autonomy. However, a growing frustration among consumers highlights a disturbing trend: when these critical systems fail, communication is often the first casualty. This article explores the systemic issues within the banking and telecommunications sectors, examining why service providers frequently prioritize internal operations over customer transparency and the tangible consequences of this neglect.

Key Points

Background

Historically, banking and telecommunications were high-touch industries defined by physical branches and direct human interaction. However, the digital transformation has shifted the primary interface to screens. As banks and telcos aggressively push customers toward self-service apps and USSD codes to reduce operational costs, the reliability of these digital channels has become paramount.

Despite this shift, the operational culture in many organizations has not fully adapted. The “legacy” mindset—where downtime was acceptable because it was invisible to most—persists. Today, however, a system outage is a public event. A customer attempting to pay a bill or board a flight is immediately impacted. The gap between the technological capability to deploy digital services and the organizational maturity to maintain them is where the current crisis of trust lies.

Analysis

The central thesis of the dissatisfaction expressed by consumers is that financial institutions are prioritizing revenue extraction over customer relationship management. This is evident in the disparity between how companies communicate success versus failure.

The Psychology of Silence

When a banking app functions correctly, banks are quick to boast about innovation and ease of use. However, when systems crash, silence often ensues. This silence is not merely an operational oversight; it is perceived by customers as disrespect. In the absence of information, customers assume the worst: that the institution does not value their time or their financial stability. This erodes the “social contract” between bank and client.

The Economic Impact of Downtime

The financial implications of a “down” app go beyond inconvenience. In the example of a failed airline ticket purchase, the delay caused by system downtime resulted in a 30% price increase. This is a direct financial penalty imposed on the customer due to the provider’s failure. Furthermore, the phenomenon of “double debits”—where a transaction fails visually but the money is deducted—creates a cash flow crisis for the user. The bank holds the money, the customer loses access to it, and the resolution process is often slow and bureaucratic.

The Disconnect in Support Structures

A telling sign of institutional indifference is the preparedness of frontline staff. When a customer contacts support regarding an outage and is met with confusion or the suggestion that the customer is responsible for reporting the outage, it indicates a severe internal communication failure. It implies that the institution is not monitoring its own service health proactively, nor is it empowering its staff with real-time information.

Practical Advice

For consumers navigating an environment where system reliability is not guaranteed, proactive management of finances is essential.

Managing Digital Finance Risks

1. Diversify Payment Methods: Never rely on a single banking app or mobile money wallet for all transactions. Always carry a backup physical payment method (cash or a secondary debit card) to mitigate the impact of system outages.

2. Transaction Verification: Immediately verify receipts and SMS confirmations after every transaction. If a transaction fails but money is deducted, take a screenshot of the error message immediately. This serves as crucial evidence for dispute resolution.

3. Timing of Critical Payments: Avoid making time-sensitive payments (such as flight bookings or auction bids) within the final minutes of a deadline using mobile apps. Allow a buffer window of several hours to account for potential downtime.

How to Handle Service Failures

1. Document Everything: If you are charged for a failed service, record the time, the error message, and the subsequent balance check. This documentation is vital when dealing with customer support teams who may not have immediate access to system logs.

2. Utilize Multiple Channels: If the app is down, check the bank’s USSD code (if available). If both fail, check the institution’s official social media pages (X/Twitter, Facebook) for outage announcements, as these are often updated faster than the website.

FAQ

Conclusion

The relationship between consumers and service providers is shifting. As digital dependency deepens, patience for unreliability is wearing thin. The current trend where banks and telcos celebrate revenue and fees while ignoring the customer experience during failures is unsustainable. True service excellence is defined not by how an app works when it is functioning, but by how a company communicates and supports its customers when it fails. Until institutions recognize that their customers are partners rather than mere sources of revenue, the frustration and justified anger will only continue to grow.