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Banking as a Service: Predictions for 2023

The Defining Trends of Customer Experience (CX) in Digital Banking

Customer Experience (CX) in Digital Banking

Paying good attention to customer experience (CX) in digital banking is very important. Undoubtedly the future of banking customer service is digital but there needs to be a harmony between technology and the human touch; this is something that providers need to continuously monitor and re-assess.

Customer demands have changed and keeping up with current client expectations requires banks to join the digital revolution and deliver an outstanding online experience that consistently makes the customer feel like a king or queen. Based on how the journey has been, a client is more likely to pledge their loyalty to the bank, the trusted advisors.  The customer of today is smart, he/she knows what is needed and the change that we witness in all spheres of existence is because there are options in place. For example, if a particular bank isn’t providing a certain rate of interest, there’ll be another one with a competitive rate or quicker request-response rate. It just boils down to one important question, ‘how did you make your customer feel?’

 A positive customer experience or CX is important not just to facilitate a bank’s ability for growth and increase revenue but also to uphold its reputation and be different in an increasingly competitive financial terrain.

Here we explore a few customer experiences trends the implication of each one for financial institutions that can reinvent customer journeys.

The Omnichannel Experience

In the quest for an excellent CX, over the past few years, financial institutions have made it easier for customers to engage with them when and where they want. A lot of banks take a multi-channel service approach by allowing customers to conduct business with them online, over the phone, in a branch location, or using a mobile app. What’s becoming more important, however, is providing an omnichannel service experience. That means there’s a streamlined, silo-less, integrated, and personalized consistency for the customer at all touchpoints, whether they’re visiting a physical branch, withdrawing money from an ATM, or checking account details on their phones. 

Today’s consumers want an engaging and immersive experience when transacting with brands, and they are willing to take their business elsewhere if a brand does not provide it.  Such changing demands are why omnichannel engagement is the future of digital banking. Many banks are already scrambling to provide an effortless digital experience.  Most banks now use a hybrid approach for all supported experiences such as mobile, web, kiosk, etc. making it easy to introduce new features across channels quickly on their apps. Apps like Appzillon leverages its underlying micro architecture and omnichannel capabilities to add new features on the fly without being invasive to the core systems.

Use of AI, ML for improving CX in digital banking

Technology will continue to bridge the gap between physical and digital banking experiences. When you think about how AI (Artificial Intelligence) can be applied to improve CX in banking, images of using “robots” to serve customers can float;  these could be actual robots such as HSBC’s Pepper in downtown Manhattan way back in 2018, or virtual agents – chatbots, Robo-advisors, etc. to attend customer requests either on the phone or via chat tools. A digital banking platform such as Appzillon includes a repository of machine learning models that helps in delivering AI-aligned User Experience (UX)  contributing towards an impactful CX.

AI and ML (Machine Learning) can help transform so much more of the wider customer journey.  For example, from a KYC perspective, ML can be deployed to help verify the customer’s identity by recognizing government-issued IDs (Passports, ID Cards, Driving Licenses), and then matching them via facial biometrics to a picture or video of the customer. The value of reimagined customer engagement has increased tenfold with AI and ML taking the spotlight. And these capabilities can strengthen CX immensely, supporting customers’ financial activities across diverse online and physical contexts with intelligent, highly personalized solutions delivered through an interface that is intuitive, seamless, and fast. 

The surge of Real-Time Payments 

When it comes to processing payments, speed and accuracy are pivotal. Customers want their money in less than a New York Minute and not a second later.  People may want to get paid at the end of their shift and employers can meet such needs by sending the funds through a real-time payment network directly into their bank account. One of the boons of the digital wave.

A real-time payment service such as Zelle, Venmo, Apple Pay helps eligible digitally active customers to authorize the payment, reducing the time it takes for them to get paid. It’s not just companies that benefit from this service. Consumers can also receive their bills directly into their bank’s app or website, and authorize their bank to pay them instantly, even on weekends or holidays.  Globally, the banking industry has evolved to meet the demands of modern society. While real-time payments innovation ramped up just over five years ago, the shift towards real-time and digital experiences will witness a seismic rise in its volume.

Personalized Customer Service Experiences 

Although the Customer Experience (CX) in digital banking initiatives that have been highlighted so far are digitally driven, there’s a want to keep the human factor in the discussion. There’s a line from a popular American mockumentary, The Office, ‘People, Ryan. And people will never go out of business.’ People are the center of everything. While customers may want to do more on their own with AI and ML in the play, for the sake of convenience, there remains an unsaid need for a helpful hand at the other end of the transaction.

The introduction of personal services such as live interactions, that the customers have in their journey with the financial institution is a crucial piece of their overall CX. And this must meet their expectations, promote seamless movement, and elevate their awareness of the bank’s brand. Implementing a feature on the bank’s mobile app, that is designed to manage customer relationships, improve operational efficiency, and reduce paperwork can upraise the CX to a considerable extent. (Appzillon feature – sales enablement).

Banks are shifting their strategic focus to Customer Experience (CX) in digital banking. Today’s fintech consumer is more empowered and educated when it comes to understanding financial services offerings. To meet the consumer’s desire to build financial literacy, banks are providing education so people feel more comfortable and prepared to manage their assets, make investment decisions, select insurance products, and so on.

2022 will ensure incremental changes to the digital banking landscape. And with demand at an all-time high, the need to surprise and delight customers with helpful digital features will be key for banks in maintaining an edge on their competitors while inspiring game-changing innovation like never before.


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