Customer experience (CX) is key when it comes to digitalisation of services in the financial sector, and AI can provide the means to master it. Find out what today’s technology has to offer
The journey for companies in the financial services sector, as they take the path to digitalisation, has come a long way from the Internet of things to the latest automated systems and mobile integration – and taking now the next crucial steps towards intelligent automation.
Financial companies are increasingly turning to fintech startups and innovative tools that can open the doors to digital transformation, to revolutionise the customer experience. A positive customer experience can not only power lead generation and sales, but it’s a fundamental driver of customer loyalty and retention for companies. Businesses are realising that enhancing the customer journey and experience undoubtedly brings long-lasting benefits, but in order to get there, investment is essential.
First things first – what is customer experience?
Customer experience involves strategic initiatives that focus on creating a competitive advantage for businesses, by delivering optimal experiences to customers.
In a new global study by Walker analysing the future of B2B customer experience, companies were asked where they were investing to meet the changing needs of customers. The results showed that 62% are investing in understanding individual customer characteristics, while 58% are investing on simplifying processes. For businesses operating in financial services, Artificial learning (AI) and machine learning are providing tools to help in both these areas, which are major factors that can result in poor or positive customer experience.
In the world of Artifical intelligence (AI) and machine learning, the opportunities have only started to unfold, especially with chatbots and automations. But the tools are advancing quickly and at a steady pace; development does not rest, and the implementation that can be seen across the range of financial services is showing an incredible potential to forever change the way consumers interact with institutions.
How is the financial sector embracing AI?
The goal is to win over the digital natives, which are now making an incredibly large portion of the population. These consumers are tech-savvy and expect high-end customer experience. Banks, financial institutions and firms operating in the wider financial space are embracing new technology solutions and disruptive innovation for improving efficiencies in areas that range from customer support, to data and insight analysis, personal loans, insurance, and overall financial business performance.
AI tools are being harnessed by professionals in the financial services industry to gain the edge in customer intelligence. Fintech solutions that incorporate open banking, for instance, can enable firms to access individuals’ financial data, to create an accurate picture of their financial circumstances and deliver better tailored products and solutions. This technology is particularly useful for lenders and loan brokers, who are able to use open banking to assess affordability and determine customer’s eligibility for specific products.
Machine learning is also experiencing fast development and implementation. Chatbots are becoming more clever and capable, and one industry where they are really making an impact is financial advice. Also known as robo-advisors in the industry, chat automation is helping advisors to better understand customer preferences and deliver tailored advice – which also leads to better customer experience and builds up meaningful relationships.
With the help of automation and integrated AI, banks and financial institutions are becoming technologically sophisticated, advancing in their capability to attain customer insights and deliver a more personalised service. Beyond advisory, businesses are making the most of these tools for enhancing financial risk assessment and decisions, conducting accurate credit checks, pulling bank statements and even anti-money laundering reports.
At this stage, there’s much room to explore, and the market trends are showing that modern financial companies are keen on adopting new solutions to stand out from the competition. A significant 30% of large financial institutions are investing in artificial intelligence.
Here’s a few insightful statistics about the state of AI, machine learning and the financial services industry:
- 70% of financial institutions are using machine learning (Deloitte insights). The uses range from predicting cash-flow events, proactively advising customers on spending and saving habits, building advanced credit models, detecting patterns in transactions, identifying fraudulent transactions and more.
- 13% of financial firms said they have implemented AI technology to increase worker productivity (Narrative Science)
- 58% of financial advise firms said they would implement new technologies in 2019, with 38% investing in tech to scale and serve more clients (Schwab)
Conclusions & recommendations
Today’s technology has much to offer and much more to come, and it’s up to the most forward-thinking companies to make the most of it in order to meet the demands and expectations of digitally savvy customers.
Easier said than done? As challenging as it may look, partnerships with fintech startups represent great opportunities for companies operating in financial services. Ibby offers the latest advances in fintech including chatbots, instant messaging automation, co-browsing, workflows and open banking, to transform customer experience and help financial brands to scale.
Get started with Ibby for free, and discover how easy it can be to bring your business to the true digital era.