Digital banking is revolutionizing customer’s behavior, expectations, and needs. Why? Because it combines digital speed and convenience with human interactions. All of which is crucial to the digital customer journey and adds extra points for nurturing your customers.
We are witnessing a shift in the competitive landscape of banking which is a fascinating journey to be part of. 4 out of 5 financial institutions believe that digital advancement will fundamentally change banking, yet less than half confess (43%) they don’t even have a digital strategy. In an industry such as banking, high-value customers are driving 70% of value for companies. Ergo, it is crucial to nurture those clients by offering a secure and digital way to connect and assist!
Banks and customer engagement
The way banks build and maintain relationships with their customers is fast changing just like any industry today. Because of the high level of competition, banks must be alert and adapt quickly to changes. There has been a switch in the operational culture of the banking system especially when it comes to customer related actions. The culture now consists of improving customer engagement and user experience by making banking easier. A survey by International Banker in July 2018 found that 67% of banks use some form of Artificial Intelligence (AI), Natural Language Processing (NLP), and Machine Learning (ML) in their front, middle and back offices today. In a matter of years, we have seen a dramatic evolution and shift away from traditional face-to-face banking towards digital banking, using mobile apps and website platforms.
“I believe that conversational banking is going to create disruption in the financial space much like what mobile did ten years ago. It is important that banks embrace this distribution channel to hyper personalize their customer experience and continue to preserve their customers’ trust which they have worked so hard to gain.” Andrew Beatty, Head of Strategy at GFS Banking FIS
The following two major trends are emerging in digital banking:
1. Banks are closing branches in favor of digital banking and self-servicing
2. Introducing chatbots that perform everyday tasks (automated financial assistant)
The digital age is dramatically changing the way banks engage with their customers, going beyond the concept of physical branches, urging the development of tech solutions to meet with the demands of today’s everyday life. The top tech solutions that clients ask for are the following:
– Online payments
– Mobile reports
– Omnichannel banking
Modern customers’ needs in digital banking
Consumers´ needs for quick, efficient service that they can trust and believe are redefining the way banks are handling their interactions and communication with the customer. Banks have been utilizing artificial intelligence (AI) to their benefit by recollecting information about their clients to provide better customer engagement and recognize the customers’ needs better. This will also help to assist and offer them with the adequate service(s)/petition(s). Banks have now more than ever, the opportunity to interact with their customers in a more engaging way. Through digital banking and data research thanks to AI, banks can know more about their clients purchasing behaviors and receive feedback from that. That way, banks can find the real pain points of their customers, redefine the banking experience and provide their customers with new solutions, that will satisfy their needs and expectations.
BUT customers still like to have a personalized service which takes us to another pattern – hyper-personalization services such as:
1. Digital wallets
2. Limited unique selling propositions
3. Staying relevant to the client
Banking in the digital age: offering a unique User Experience
The focus is on digital products to meet customers’ needs in banking. More people are opting for digital banking rather than traditional banking simply because it is more convenient.
What is trending in the banking sector (and the digital era in general) are new and innovative systems to attract and retain customers. Why? Because the customer is looking for an easy-to-use and personal experience and so, there is a need to start designing a user experience (UX) that is more personalized, digital, user-friendly and omnichannel (across all platforms). It’s about creating a conversation with the customer. Also called conversational sales.
Chatbots and live chats give the opportunity to be approachable on one single platform but from all kinds of devices. In case a routine conversation carried out by a chatbot is not giving the right answers the conversational can be redirected to a sales representative to answer complex inquiries. Additionally the chatbot functions as a data collection tool, this way the human agent can solely focus on the customer needs.
“Chatbots will power 85% of all customer service interactions by the year 2020” Gartner
What we should keep in mind is that customers expect an easy and seamless digital experience and if not, banks will face a loss of customer loyalty and customer retention. And never forget that the more seamless the digital banking is, the better. It is all about to engage with the customer in the best way.