Today, most of the brands in the banking sector are considering how AI can bring personalization to serve customers more effectively.
The banking and finance industry deals with money, a very sensitive product. Customers in this sector need complete assurance of great service and data safety. Customer service is the baseline for brand loyalty and business survival in the sector.
In a report, 11 Key Things Consumers Expect from Their Brand Experiences Today by Emplifi, 86% of consumers would leave a brand if they faced bad customer service experiences.
Banks should remember that their customers expect the same from their banking partners. Also, personalization in banking is one way to expand their market, build a strong customer base, and generate revenue.
In the study Personalization Pulse Check 2018 by Accenture, 19% of customers are more associated with businesses that recognize, recall, and provide relevant recommendations.
AI brings massive opportunities while building personalization in banking. Banks must use AI stacks that deliver personalized solutions and experiences at scale in real-time.
Why Should Banks become AI-driven?
Banks have always adapted to the latest technology and innovations and constantly redefined how customers interact with them. This sector was the first mover in technology adoption.
Examples, like the introduction of ATMs, card payments, and 24/7 online banking, prove this. The increased use of mobile-based “banking on the go” proves that banks have constantly evolved with customer and technology demands.
New technologies like AI power banks in multiple domains. AI is rapidly advancing customer services in the world of banking. Integrating AI into all customer service domains has made banking personalization possible.
AI in banks is pushing personalization to the next level by looking at these trends:
- Rebuilding customer engagement: Banks are unlocking new customer value and new data value by delivering better banking services than before. AI is helping with personalizing services to rebuild customer engagement.
- Rising Customer expectations: Customers demand convenient and consistent banking services across their mobile apps. They seek convenient access to their accounts and payment modes and get instant solutions. It also includes easy website and online portal navigation.
- Increasing human-like Interfaces: Conversational interfaces in apps and websites are popular and used by customers, which builds high customer engagement. AI-driven support systems like voice commands and voice and video interfaces are important drivers of personalization in banking to expand in-person interactions.
How AI brings Personalization in Banking?
AI helps banks initiate personalization by delivering customer experiences through their preferred channels at the right time.
So, how does AI do that?
- AI collates customer data: AI tools integrated into apps, websites, and other online portals of banks help to gather relevant customer data. The data gives customer information based on their interests, requirements, and behavioral patterns towards their banking partners.
- AI provides accurate analytics: AI and ML technologies help with predictive analytics and forecasting. The analytics dashboard presents data visually, making it easy for banks to interpret, forecast, and make accurate decisions.
- AI-powered Chatbots: AI has helped banks by building chatbots for customers to communicate their requirements. Chatbots have increased personalization across the banking system. Its usage is seen across websites, apps, payment platforms, and accounting.
- Optimized AI Campaigns: AI-based campaigns inform customers of the latest offers, notify account-related actions, payment information, and deals, and send default banking-related information. Banks use AI to develop and deliver personalized messages through campaigns and manage customers’ interests.
How Banks Can Use AI for Personalization?
Banks are expanding their use of AI technologies to include or improve personalization for customer experiences.
1. Facial scanning to initiate transaction:
Many financial institutions and banks now use AI to build facial scanning features for customers to initiate safe transactions. These features offer customers a secure transaction journey and streamline their activities.
This builds trust between customers and banks. Facial scanning also helps protect customers’ accounts and payments, thus keeping their financial data safe.
2. Conversational bots for all banking requests:
A banking account Bot allows customers to manage their account activities easily. The Bots function round-the-clock and allow customers to make any request they want. In response, these bots give quick answers, creating a frictionless conversation.
The Bot gathers customer account data, including account balances, payment deadlines, transaction history, and offers for loans or credit cards.
3. Robotic Process Automation:
Banks use robots to personalize their customer services and experiences by providing automated notifications. They help schedule calls for account information, OTPs, and verification of documents.
The robotic process automation includes video banking. Banks use robots to provide video banking services. They serve several customer queries regarding deposits, bank card usage, and complaints management.
4. Banking solutions:
Banking apps offer money management and saving solutions to customers. AI tools analyze customers’ transaction activities and give solutions for failed transactions. They also send alerts to make transactions and prioritize payment schedules.
This is where banks are becoming more competent in delivering customer personalization services.
How can AI help to Create Personalization in Banking?
Creating personalization in banking requires accurate customer information. It can be done using the right tools, technologies, systems, and proper management.
Let’s see how banks can successfully build personalization for their customers.
- Use appropriate customer data and use them properly: Banks need to have a relevant customer base to initiate personalization. They can gather data based on their interests, behavior, buying patterns, transactions, and surveys to fulfill this.
Apart from this, the correct use of data is equally important. With strong data, building custom offers becomes easier. So, by using AI and automation tools, banks can segregate data and make personalized offers accordingly.
- Use machine learning: AI and machine learning algorithms analyze customer data patterns and trends. Banks can use these technologies to predict customer behavior and forecast banking trends to drive future customer interest.
- Focusing on convenience: Customers look for the convenience of using services from their banks. A frictionless banking experience is possible when banks use adequate technologies and platforms for customers to use.
It includes instant transactions, transfers, payments, quick banking solutions, connectivity, navigation across banking apps and websites, and more.
- Transparency: Banks should include transparency across their customer base to provide personalized services. They should get consent for customer data usage and then craft transparent strategies to show how it is used for personalization. This will help to build trust and result in customer retention and satisfaction.
Also Read: The Rise of Fintech Personalization: How AI is Fueling Competitive Advantage
Conclusion
As banks have already used technology for a long time, digitization was not challenging.
However, using AI to personalize their products and services in their banking system is a new approach. It has revolutionized banks, providing better financial and banking services. Customers today look up to their banks for instant responses remotely. Banks need to provide speed and customized services.
Personalization has been a key component for business to increase their revenue.
