Banking

Using AI to create better customer journeys in banking

Over the past decade, the banking industry has faced an uphill battle. Following the global financial crisis, most banks have had to work hard to regain the confidence of customers who are not only far more anxious about the security of their personal finances, but who are also increasingly skeptical of the financial institutions they’ve entrusted their finances to. Meanwhile, a variety of fintech companies and other new market entrants are disrupting the industry, bringing new services and capabilities, while siphoning off once loyal customers in the process. For banks to not only survive but thrive in this new normal, it’s imperative that they create better customer experiences.

Of course, the typical customer journey in banking is long and complex. It includes many touch points, ranging from onboarding and regular day-to-day transactions to maintenance and ad hoc problem solving. Adding further complexity is the fact that the journey is often split between a combination of online and in-person experiences. For example, while 61 percent of banking customers start their journey in a digital channel to open an account, more than half of them (58 percent) ultimately end up in a branch to complete the process.

To optimize these and other experiences, banks are allocating vast resources to reimagine a variety of touch points along the customer journey. In fact, three quarters of the world’s 50 largest banks report engaging in vast digital transformations, with a view toward creating better customer experiences, increasing customer loyalty, and driving word-of-mouth referrals.

Where banks often go awry

Despite their efforts and the resources they’re putting toward solving the challenges they face, banks often get tripped up on the road to transforming customer experiences. Research from McKinsey suggests that there are three main mistakes that most banks make in this regard:

  1. Trying to take on too much at one time rather than focusing on quick wins. As a result, the larger, more comprehensive initiatives they try to execute often never fully get off the ground, leaving bank executives frustrated while delivering no value to customers.

  2. Losing sight of what customers actually need. Although customer-centricity is front and center for banks, when it comes time to actually deliver on it as part of their digital transformation efforts, they often fall short. In many cases, they get distracted by trying to beat out competitors rather than actually meeting customers’ needs.

  3. Not being able to scale solutions across the entire business. Efforts to improve the customer journey are often undertaken within individual silos inside banks. As a result, they fail to get the bank-wide attention and resources necessary to actually come to fruition.

While improving the customer journey in banking isn’t easy, it’s certainly possible. In some cases, the key is to find the right partner and tools to help.

AI offers a solution

Savvy banks are increasingly relying on AI to help optimize the customer journey. At integrate, we help banks improve customer acquisition and increase cross-selling. By using our AI system, for example, we can help banks identify which customers would be most influenced by cash incentives to open a new account or take out a credit card, thus creating more business.

Meanwhile, using our Trusted Signals ExchangeTM, we empower banks to drive more value from their data without having to put customer privacy or security at risk. In doing so, we help them ensure that they are delivering the right offers to the right customers, while maximizing conversions and retention.

Ultimately, AI has a critical role to play in helping banks create better customer journeys. At a time of heightened competition, when the stakes are high and getting it right is a business imperative, finding a partner to help deliver proven solutions can make all of the difference in the world.

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