The Financial Brand Insights - Fall 2022

two “layers”: the intelligence dimension and the omnichannel dimension . The intelligence dimension functions as a repository of customer data and information, making it possible to offer a personalized experience. The omnichannel dimension comprises applications and traditional channels that enable the fulfillment of transactions. The key offering of this dimension is the element of flexibility, giving customers the option to go into their app, connect to a call center, or even in-branch if they wish. Benefit #2: Adding a Conversational Dimension Conversational banking entails a third dimension that is underutilized by financial institutions. As a set of integrated conversational features, it represents a tremendous opportunity to define a personalized service and build stronger relationships with customers. Leveraging on an omnichannel presence, the conversational dimension could provide anything from AI-led chats to agent-advisor video calls. The real value, however, is that adding a conversational dimension gives banks and credit unions the ability to turn run-of-the-mill transactions into interactions. In the absence of frequent contact with customers by default, this is vitally important. Human conversations are an opportunity to consolidate relationships and personalize service, driving long-term value and revenue.

4 Benefits of a Hybrid Approach to Conversational Banking It’s easy to program a virtual assistant to start a simple conversation, but continuing a conversation is where technology falls short — and people thrive. This is precisely why a hybrid approach is more effective, recognizing that complex conversations require people on both sides, whether on a mobile app, e-banking portal or in-person. In banking, dead-end conversations with chatbots have propagated the false division between quality customer service and cost- effective operations. Done right, conversational banking can stimulate both. A digital ecosystem that relays conversations between bots and human agents saves banks and credit unions time and money, and even adds value by enhancing the customer experience. Hybrid conversational engagement can boost revenue and relationships in four key ways. Benefit #1: Two Key Dimensions of Personal Service The past few years have seen a surge in use of self-service among banking customers. The rise of 24/7 customer service culture has mandated that financial institutions make routine transactions as accessible as possible, while the paradigm of “hyper-personalization” has also put pressure on institutions to actually anticipate customer needs and individualize offers accordingly. This level of customer service, which is now common among major banks, requires

Benefit #3: Leveraging Hidden Opportunities The digital world houses countless opportunities for customer conversations. For example, customers often desire the convenience of a digital channel but require the nuance and familiarity of a human conversation if a problem arises. This stage of the customer journey, often referred to as “the moment of truth,” is a hidden chance to deepen the bank-customer relationship by stepping in to assist at exactly the right time. The hidden opportunities for human conversations also add value to a digital offering, which amounts to quantifiable value in terms of revenue. For instance: • Customers served by omnichannel services are a valuable subset of banking clientele, according to McKinsey. Those who interact through multiple channels hold 80% more products with the bank and generate more than twice the revenue as customers who only interact through a single channel. • Digital sales matter, states Deloitte, especially when it comes to complex products. By the beginning of 2021, 61% of total loan sales among U.S. banks were completed on digital channels, up from just 39% one year prior. • More intuitive conversations create savings for financial institutions. Unblu has seen that implementations of conversational digital tools can reduce customer support costs by 50%, and acquisition costs by 60%. The conversational dimension of digital banking is rich with opportunities — for both revenue and relationships. And, as the demand for humanized services suggests, the two are likely to go hand- in-hand.

The Key to Customer Happiness: Nearly nine out of ten people say the customer experience

matters more than both products and services.

experience gaps — and the implication for banks and credit unions is lost revenue. Consider this: 88% of customers say the experience a company provides is as important as its product or services — a jump from 80% in 2020, according to the 2022 Salesforce State of the Connected Customer report. Curbing these outcomes takes a considered approach. To start, financial institutions should

reflect on their use of the chatbot. Why Chatbots Are Not a Catch-All Solution

Problematically, chatbots and conversational banking have almost become synonymous. But here’s the difference: while conversational banking is better defined as an umbrella category, chatbots are only a subset of possible interactions. Furthermore, chatbots often are configured simply as an interactive FAQ page, unable to handle complex questions, which leads many chatbot deployments to get an underwhelming response from users. Despite their limitations, chatbots do hold promise. The key for banks and credit unions is identifying how and where chatbots might genuinely be useful to customers. For simple inquiries, such as branch hours and locations, and other repetitive questions, chatbots can easily alleviate the burden on human support resources. However, for more complex questions, it becomes clear that chatbots need to support seamless integration with human support to deliver better customer experience.

Three dimensions of conversational banking

DELIGHT

ENGAGE

PREPARE

The Real Value: Adding a conversational dimension gives banks and credit unions the ability to turn run-of-the-mill transactions into interactions.

Omnichannel Dimension

Intelligence Dimension

Conversational Dimension

Benefit #4: Increasing Customer Satisfaction

Branch Web eBanking

CRM Big data Marketing automation Chatbots Transactional

Live chat Secure messenger Video & voice calls Co-browsing

In an environment riddled by fraud, mistrust of institutions and false information, banks today are under pressure to prove they have

Mobile/app Call center

THE FINANCIAL BRAND © June 2022 SOURCE: Unblu

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THE FINANCIAL BRAND INSIGHTS FALL 2022

THE FINANCIAL BRAND INSIGHTS FALL 2022

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