How To Increase Efficiency in the Banking Customer Experience With the Power of Fintech

2020 left many financial institutions struggling to keep up with a tsunami of new demands and competitive challenges. Banking call centers are often overwhelmed and customers’ financial needs are increasingly complex.

How Can Banks Solve These Problems Faster and Better to Gain Efficiency and Drive Growth?

Fintech makes it possible. Many banking institutions are considering Artificial Intelligence (AI) and machine learning (ML) for their digital transformation, but building solutions in-house could take some time. In this sense, partnering with a Fintech company could speed up time to market, as it allows banks to offer new digital capabilities that enhance the customer experience (CX) while significantly improving operational efficiency.

Fintech applications are designed to solve a specific problem for a specific user. Cutting-edge solutions are transforming banking operations.

How Can Financial Institutions Improve Profitability and Competitive Advantage with Technology-Driven Efficiency?

1) Optimizing Customer Service With AI-Powered Support

The recent economic crisis hit banks with an unprecedented demand for customer service. The pandemic caused millions of people to seek help to defer mortgage and credit card payments, or apply for loans, and were forced to wait hours for personalized assistance.

Fintech is solving that with Artificial Intelligence. Most calls and WebChats often include repetitive requests that don’t need a live agent. Many inquiries and transactions can be handled by an AI-powered conversational chatbot, speeding up service to customers and freeing up call center agents to resolve more complex issues.

2) Increasing Growth With a Simpler Checkout Experience

Digital payments are becoming the new norm. Almost 78% of consumers worldwide have now changed the way they pay to reduce contact. Unfortunately, as financial institutions continue to pile on mobile banking features, the apps have become more complex and difficult to use. Apple and Google seized this opportunity and rushed to deliver frictionless payment experiences that are revolutionizing traditional banking.

People want to feel in control of their money, now more than ever. They want to be able to apply for, receive and start using a credit or debit card in minutes, all from their smartphone. If the card is lost or stolen (or the account is compromised), consumers want the ability to instantly turn off that card and receive a virtual replacement right away. And do all of that from a simple mobile app.

When simplifying payments CX is imperative, Fintech expertise can pay off by offering cardholders self-service control and greater spend clarity in a modern, digital app. The benefits are lower support costs, less fraud and higher customer satisfaction.

3) Accelerating Financial Wellness Engagement with AI-Powered Training

Today’s consumers expect personalized experiences, especially digital natives. In fact, according to Gallup, 91% of customers who receive digital advice from their bank report a high level of trust.

But how can financial institutions afford it? It has generally been too expensive to advise a broad retail client base, so only the wealthiest segments receive personalized attention. But millennials and Gen-Z represent more than $3 trillion in potential spending power; meaning that attracting and adding value for these audiences could be vital for long-term growth. A Fintech partner can make it viable and profitable.

Digital financial coaching can be a differentiator. Banks that make customers feel their financial wellness needs are supported will be well rewarded with higher portfolio share, better Net Promoter Score (NPS) scores and revenue, according to Gallup.

Personalization is key, and that’s what makes AI an ideal solution. Financial well-being is so subjective and contextual that pervasive service standards won’t change customer perceptions, according to Gallup. AI-powered coaching enables the personalization and digital convenience that clients want, in a cost-effective model that is easier for financial institutions to implement quickly.