How Technology is Redefining Customer Experience (CX) in the Banking Sector
Like any other business, the banking and financial sector has experienced fast-paced technological disruption over the past few years. With the advent of FinTech, many traditional financial institutions opted for a swift business transformation built on hyper digitization. This monumental shift helped banks to keep up with renewed regulatory requirements, increased cybersecurity risks while enhancing their customer experience (CX). Today, CX is becoming a competitive differentiator in the banking industry as empowered customers are engaging with banks at their convenience using multiple channels to interact and transact. This has incentivized banks to streamline their CX approach and offer a more contextual, intuitive and experiential engagement for their customers.
As per a Gartner survey, customer experience in banking is becoming increasingly important for two major reasons: First, CX has emerged as a marketing battlefront and second, CX has become a powerful tool to improve customer retention.
With greater infusion of tech in the banking industry, banks are leveraging artificial intelligence (AI), chatbot, internet of things (IoT), robotic process automation (RPA), blockchain, and advanced data analytics to deliver a more gratifying customer experience. Let us see how these emerging technologies are changing the face of CX in banking.
Artificial Intelligence (AI): Banks have deployed AI to strategically design seamless customer experiences that are dynamic in nature. Right now, banks are using AI to validate customer IDs, auto-populate form fields, and perform quick credit checks during customer onboarding. AI capabilities are also being used for chatbots on banking apps and websites as AI offers customers with faster and accurate query assistance. AI-based customer service also offers customer alerts and suggests tailored offerings based on a customer’s transaction, usage, and personal interest enabling consistent, intelligent and effortless CX.
Internet of Things (IoT): IoT is facilitating banks to create a hyperlinked system of intelligent devices that share data through the cloud. This helps banks to gauge deeper customer insights in order to expand their range of services to provide value-added, customized and even on-demand customer services. IoT helps banks to understand the financial requirements of their customers more efficiently and improve customer retention in the long run.
Robotic Process Automation (RPA): RPA uses bots to handle repetitive tasks, thereby minimizing errors and helping customers make informed decisions at a lightning-fast speed. This is valuable in streamlining critical processes and offering intelligent solutions for customers. By automating omnichannel processes, banks reduce average customer handling time and resolve customer issues faster in order to deliver exceptional customer satisfaction.
Blockchain: Banks are leveraging blockchain to improve business transparency and foster trust among customers. Blockchain helps streamline payment processes and accelerates processing time for transactions like credits and loans thereby offering unparalleled customer experience.
Advanced data analytics: This helps banks to build detailed customer profiles which are further used to proactively engage with customers. Analytical insights that banks gain through multiple channels helps them to target the right customers and offer relevant products in real-time. Through these customized experiences, banks are able to better serve their customers while building long-lasting relationships.
The introduction of these disruptive technologies has been a game-changer in the world of banking services. With an overarching focus on CX, banks today are striving to provide end-to-end banking solutions that are customer-centric, efficient and intelligent. This modern customer service architecture offers truly exponential customer satisfaction and higher customer retention.
Looking to make some changes to your financial institution? Connect with us to redraw your Customer Experience (CX) models.