Fintech Raises Customer Expectations, Are You Equipped for the Demand?
Stepping up digital
In 2019, more U.S. consumers interact with their financial institutions via electronic devices, particularly mobile ones, more frequently than they use a branch or contact center. Mobile devices now provide every aspect of a consumer’s financial management needs.
Financial institutions have jumped on this trend, offering comprehensive digital banking services, making money management accessible, intuitive and easier than ever before.
PwC research concludes that 88% of legacy banking organizations fear losing revenue to financial technology companies in areas such as payments, money transfers, and personal loans.
For financial organizations’ contact centers, It’s no longer enough to offer customer service by voice and email, or any siloed channels. Customers want to manage their financial affairs by moving seamlessly through self-serve, chat, text, email and voice, without having to repeat their story, wait, or get knocked around from department to department.
Using digital channels also reduces costs for contact centers. For example, Citigroup expects computers could handle as many as 30 common queries traditionally managed by human contact center agents.
- As much as 88% of millennials do their banking online, and those numbers will only rise as Generation Z enters the workforce and begins doing banking on their own.
- Half of banking customers globally are now using fintech firms.
- By 2022, mobile transactions are projected to grow by 121%, eventually composing 88% of all banking transactions (CACI)
How digital banking wins customers
Fintech is providing a complete array of digital services including:
- Making payments
- Buying insurance products
- Getting financial advice
- Budgeting and accounting
- Acquiring credit cards
- Applying for loans
Within fintech, neobanks are banks without any physical branch locations, on completely mobile and digital infrastructure. Neobanks, and all of fintech have re-invented banking and are forcing all financial institutions to revolutionize how they do business.
- 66% Range of functionality and features
- 55% Availability of services 24/7
- 53% Ease in setting up, configuring and using the service
As the tech giants and fintech applications enter the world of financial services, customers are developing these expectations:
- Easy communication with businesses by favorite channels at all times.
- Personalized communications informed by both the customer’s profile and previous interactions with the business.
- A high level of continuity, reliability, security, economy, and quality that will stay intact as the business scales.
- The ability to accomplish financial activities efficiently and easily through almost exclusively digital channels backed up by a human in certain circumstances.
When digital isn’t enough
TD Bank realized they had to move to a true omnichannel solution when an executive tallied up the value of all the abandoned applications customers started in digital channels and never finished. It came to the tune of $1 billion in lost revenue. TD Bank traced the problem to the bank’s lack of a true omnichannel platform, which was creating unnecessary customer effort and dissuading prospects from completing a transaction.
Customers who’d banked with TD for years would sign up for a new credit card or business loan and be asked to fill out an entirely new application as if they’d just walked in off the street.
Data silos between business lines such as retail, lending, mortgage and wealth management meant that there was no customer information-sharing between them, causing the number one customer complaint about contact centers–repeating their story multiple times.
Doing digital right
The immediate mission is clear: Corporate leaders must focus on reducing customer effort. If the application process, credit approval, and card delivery dates and processes are not seamless, the customer will move to a business that gives them the convenience, access and ease-of-use online retailers have conditioned them to expect.
To compete with Fintech, every financial organization must offer multiple digital channels, fully integrated with customer profiles, sophisticated customer-friendly IVR, compliance tools, customer experience research tools, AI-powered chatbots, and analytics.
This true omnichannel experience promises seamless movement between channels. For example, while it takes a branch employee 45 minutes to onboard a new customer, digital customers can enroll themselves in two minutes through the online self-service portal. if they save an application on one channel, they should be able to pick up where they left off in a different channel.
According to a study by Juniper Research:
- The use of AI-powered chatbots is expected to cut $8 billion in costs from the global banking and healthcare sectors by 2022.
- Successful banking-related chatbot interactions will grow 3,150% between 2019 and 2023.
- Customer-facing systems such as text chats, voice systems, or chatbots can deliver human-like customer service or expert advice at a low cost.
- An estimated 826 million working hours will be saved by chatbots in 2023 alone, making AI one of the top fintech trends.
Financial institutions are increasingly incorporating AI-powered bots into their services:
- At Capital One, a text-based chatbot service lets you manage your finances by texting about issues like payment history or paying your credit card bill.
- Mastercard’s Facebook Messenger bot also reports cardholder benefits updates and shares new offers and services.
- At Bank of America, you can have conversations with the chatbot Erica, both via text and voice, to schedule a payment, check out your most recent transactions, and more.
With bots resolving simple issues, artificial-intelligence-powered systems can then route only critical or complex calls to human agents. AI-powered self-help can identify keywords to take a customer to agent, the right agent, or the right place for a shift in purpose. Intelligent data and machine learning analytics can power conversational, interactive financial assistants that measure and monitor your customers’ financial health, and then produce personalized insights and smart recommendations designed to help them reach financial goals.
These solutions lower costs for financial institutions even while they measurably improve customer service, significantly boost engagement, and help consumers feel like more than just a number to their banks.
All-digital channels, plus a human
Fintech is offering all-digital experiences which people are enjoying, as long as they also have access to just enough actual human help. This advantages contact centers with omnichannel over omni-digital without a human voice option. Some banks have even found that customers are more open to adopting digital and self-service channels if they know technical support is just a phone call away, even if they rarely use it.
However, customer satisfaction with contact centers is the lowest among all bank channels due to long wait times, the need to authenticate oneself and explain the problem repeatedly, and the long issue-resolution time. Banks can compete when they enhance focus on the human touch and position contact centers as “experience centers,” constantly prioritizing customer experience.
Financial institutions must now connect with their customers in ways that meet not only their digital expectations, but also their continued need for a human. Customers want to know they can call someone and get personalized, human help when they have urgent, scary or complicated needs.
In fact, Contact centers remain customers’ most preferred channel in the negative moments that matter:
Clearly it’s time to give up on siloed attempts to add technology to a bolted-together platform and invest in a state-of-the-art cloud-based system that is built to compete with fintech systems, including fully integrated channels: SMS, email, chat and voice, AI-powered chatbots, customer profiles, offering a 360° view of each customer, and analytics for both customer satisfaction and optimal agent performance.
LiveVox is a leading provider of enterprise cloud contact center solutions, managing more than 14+ billion interactions a year across a multichannel environment. With over 15 years of pure cloud expertise, we empower contact center leaders to drive effective engagement strategies on the consumer’s channel of choice. Our leading-edge risk mitigation and security capabilities help clients quickly adapt to a changing business environment. With new features released quarterly, LiveVox remains at the forefront of cloud contact center innovation. Supported by over 450 employees and rapidly growing, we are headquartered in San Francisco with offices in Atlanta, Denver, Bangalore, and Colombia. To learn more, schedule a demo today.