Banks must become ‘AI-first’ in vision and execution to remain competitive.
Banks must transform their full capability stack, including the engagement layer, with AI-powered decision-making, core technology and data infrastructure, and operating models.
When fully integrated, these capabilities can support people’s financial activities in various online and offline contexts with intelligent and highly personalized solutions delivered through an intuitive, seamless, and quick interface.
These are the minimum requirements for an AI bank.
AI-led Digital Banking Transformation
Bank personnel should consider AI and digital chat technologies as customer engagement enablers. AI offers time-saving benefits, such as updating customer records and improving consumer involvement to provide relevant, individualized recommendations.
56% of banks and credit unions had launched a digital transformation strategy before 2020.
The pandemic accelerated digital transformation plans as banks cut branches and curtailed in-person interactions. Digital conversations grew to create new relationships and retain old ones. Online banking, applications, and AI-powered chatbots increased.
The applications that make AI useful rely on using natural conversation to obtain the appropriate customer information. Therefore, guided conversation tools are the foundation of digital banking services.
Why Artificial Intelligence-led Client Engagement?
Financial advisors have placed a premium on gaining and retaining trust. Given the changing preferences and tough market conditions, banks must adopt new strategies to enhance client engagement, increase client retention, and attract the next generation of clients.
In order to increase banking client engagement, they must demonstrate a level of expertise and trustworthiness that exceeds expectations. So, what can advisors accomplish?
Provide personalized advice customers can trust
There is access to a greater quantity of information and resources. More than half of clients routinely research and read financial articles.
However, clients go to their advisors for assistance and support during difficult times. They expect advisors to anticipate their needs and deliver a personalized and meaningful experience.
Financial advisors must utilize various content to educate customers during the decision-making process.
Instead of selling items and services, providing intelligent and digestible educational content will create a genuine and trustworthy relationship with which clients will want to continue engaging.
Go to where clients are
Personalized material is useless if advisors don’t deliver it when and where clients need it. Many clients prefer social media for assistance. So, advisors must share engaging content on social media.
Advisors can then assess clients’ financial situations and offer advice. They can boost engagement and develop long-term expertise-based partnerships.
94% of successful advisors use direct messaging on social media.
In the last two years, advisors used LinkedIn most, followed by Facebook and Twitter.
Leverage technology and data
Though content delivery is excellent, advisors must know how and when clients use it. What did they watch most? Do they avoid specific things? This data can help determine what content clients want more and where to improve their strategy.
Data and analytics will help generate better content and speed up the buying process.
Financial services firms must adopt new technology to assist advisors and provide effective customer service.
Modern enablement technologies with content management, customization, and social selling features can provide advisors with everything they need to build connections and meet client needs.
Financial wellness through guided conversations
Chatbots are popular and offer basic FAQs. They are one of the tactics of the conversational AI market and were valued at USD 0.84 Bn in 2022 and could be worth around USD 4.9 Bn by 2032.
But customers need to make important financial decisions. Chatbots are one of the applications of conversational AI, which also includes intelligent virtual assistants (IVA) and intelligent interactive voice response (IVR).
Guided conversations help banks deliver the right product at the right time and help in complex decisions while ensuring a more streamlined and positive customer experience in branches through remote video banking or call centers.
Guided conversations identify needs and guide clients to the offerings that enhance, fulfill, and accomplish financial wellness.
AI can serve as the banking advisor’s right-hand man to elevate the customer experience and earn customer loyalty.
AI-based guided support assistants will continue to evolve and assist the banking industry in enhancing quality, empowering customers, reducing human workload, streamlining client onboarding processes, and managing security threats.
Draup’s sales intelligence platform can assist service providers in implementing AI-based cutting-edge solutions to help banks build deeper relationships with customers and analyze data monetization opportunities.
They can use real-time insights to recognize automation trends. The Signals Cast application can help them examine trending use cases and guide service providers to proactively identify opportunities, win customers, and retain them.