RLR Management Consulting

For True Digital Transformation, Banks Need to Get Obsessed with the Customer Experience

Written by Mike Duncan, CEO from BankJoy

There has never been a better time for banks to accelerate their journey towards digital transformation. Afterall, adoption of digital continues to rise – beyond banking. Post pandemic, consumers have drastically changed many aspects of their lives, from how they work, to how they shop, and how they bank.

A new Gallop study that found that 70% of Americans who typically work in an office or at a computer are still working from home. And don’t expect these numbers to change much. Companies like Amazon, American Express, Ford, Target and a host of others have announced plans for long-term remote work, prompting smaller companies to follow suit or risk turnover.

It’s not just remote work. McKinseyrecently reported that the effects of the pandemic have accelerated the digitalization of companies´ offerings by almost seven years. In the U.S., e-commerce virtually replaced physical channels in a staggering three months, jumping from 17% to 33% in the final quarter of the year.

Admittedly by need, this shift also spilled over into banking. Consumers who were once hesitant to bank online were forced to increase their comfort level. Fast forward to today, they now have a bigger appetite for it. They expect it and they want it, with 85% of Americans saying they intend to keep managing their finances online or through their mobile devices, according to a recent study.

The increased interest in digital banking is not surprising, but financial institutions must keep pace with demand while also ensuring that their offerings are modern and seamless. Consumers will continue to interact with brands more through digital channels compared to face-to-face, including banks. However, it will only be with those that provide outstanding experiences. This could be an issue for many financial institutions.

Despite the rapid increase in digitalization, banking has trailed behind other industries when it comes to the experience. A recent analysis by FICO and Arizent Research of over 300 financial institutions found that three-quarters of banks are either slowly progressing or outright lagging. Only 6% were found to be leading the way in best-in-class personalization.

Being able to seamlessly deliver 100% of the ‘in-branch’ experience through online and mobile channels is critical, but it must be approached with an obsession on the customer experience. Failing to do so could mean losing out to the bank down the (virtual) street, which could be anywhere now.

Consider that this year has been named the “Great Resignation” as consumers quit their jobs at a record pace to regroup, reevaluate and make changes that better fit their life. Could consumers also look to “quit” their banks if they fail to offer the flexibility and digital experience they want? Quite possibly.

To deliver an outstanding, personalized experience that retains and attracts customers, banks must fully leverage and optimize conversational artificial intelligence (AI). That’s where Bankjoy comes in. Bankjoy provides modern banking technology to banks and credit unions of all sizes, including Conversational AI, delivering the most feature-rich and intuitive natural language experience.

Built by executives from financial institutions, Bankjoy’s solutions are designed with careful consideration of the end user. We actually talk to them to understand what it is they want from their FI. That’s why so many banks and credit unions are turning to us to improve the digital experience. Literally everywhere, Bankjoy’s Conversational AI is an update to traditional IVR. Instead of pressing numbers on a phone, users talk, and Joy understands. Joy also understands natural language texts 24/7. There is no need to memorize a list of commands to use text banking.

Users can also bank using Amazon Alexa at home, in the car and through the Alexa mobile app. Additionally, those who use Google Home can enjoy the convenience of Joy, too. Joy can also be connected to LiveChat, LivePerson, Slack, Facebook, Messenger and other platforms, offering superior flexibility for customers.

As the demand for digital banking grows, these options are no longer “nice to haves.” Banks must accelerate their journey to true digital transformation, which requires a major focus on the experience. Conversational AI is a critical component to that experience and will determine who wins and who loses.

For more information on BankJoy please contact Mike Duncan, CEO at Sales@bankjoy.com.