Banks are continuously looking for opportunities for growth: for improved customer acquisition, for deeper and more profitable relationships with existing customers and for better alignment of expense against revenue opportunities. But achieving that growth is a difficult challenge, in an increasingly competitive environment and evolving technology landscape.
Banking has evolved in the last few years to become a hyper-relevant service that efficiently delivers a deeply personalized customer experience that takes into account why, where, when and what the customer needs. Not surprisingly, 71 percent of C-level banking executives believe business reinvention is required to be successful in today’s context.
Banking digital assistants are now generating new opportunities for banks to transform customer experience and generate increased customer acquisition, conversion, and retention rates, all at a lower cost. Digital assistants can help banks grow banking revenue in multiple ways.
Discover banking products - Digital assistants can help customers discover products and services that banks offer. This information tends to be FAQ in nature and can be easily made available from the assistant for convenient self-service. A recent study showed that 72% of customers first try to solve issues themselves and prefer to look for solutions on the banking website or the application. Digital assistants can be used to empower customers across channels and provide them with the correct information in real-time.
Recommend products - With advances in big data analytics banks can track customers’ past purchasing history. This capability coupled with the digital assistant’s ability to offer an unmatched level of personalization can help banks make product recommendations that are tailored to each individual customer. The customer after several successful interactions over time with the digital assistant would begin to trust its recommendations.
Improve sales through better conversion – Within Banking, revenue is a function of customers multiplied by conversion rate multiplied by Unit Sale value. Hence to improve revenue, the conversion rate has to improve. Traditionally the time taken along with the immense paperwork associated with buying banking products can dissuade any customer to postpone their buying decision. Digital assistants can greatly improve the time and steps taken to purchase a product and also guide the customer through the entire process as well.
Cross-sell and up-sell products - AI in banking uses machine learning to find patterns in customer behavior, memorizes their preferences, and analyze their interactions to follow through to pitch the most personalized up-selling offers.
Digital assistants are the type of technology investment that turns customers into lifelong bankers because of their ability to combine consistency and personalization.