Do you ever wonder that we would have been better conversationalists if we were mind readers? The Financial services sector faces the ‘what they want’ challenge at large as only one-third of the adults worldwide are financially literate. This creates a communication gap between the customers and the service providers and they are clueless of what people want. Financial Literacy of customers could help banks and credit unions be a step ahead in their respective games. Time, money, and energy could be used more efficiently and we can absolutely nail the art of cross-selling. Unfortunately, none of us are accurate mind readers but Autonomous Finance is making it happen for us.
A research company Forrester defined the term as “algorithm-driven services that make financial decisions or take action on a customer’s behalf.”
When we open Netflix, we come across a few recommendations we might prefer watching. Netflix does it right when it comes to knowing its audience. In fact, a report states that 80% of what we watch are Netflix recommendations. That’s one example of effectively using Artificial Intelligence (AI) to drive customer engagement.
Imagine that happening to the finances, where the decisions of one of the most important assets of people’s lives – money could be automated and they no longer have to worry about recurring payments, savings or investments. It can certainly save individuals from breaking their banks, and also educate them about different avenues to choose from.
Emphasis on Digital Transformation post pandemic
The year 2020 has witnessed a noteworthy rise in the usage of digital banking systems among people. A report mentions that eight in every ten Americans prefer banking digitally than visiting a physical branch and we don’t see these stats coming down any sooner. The after effects of pandemic saw a surge among not only millennials but also older generations becoming technology friendly specifically in terms of digital payment systems.
While Accenture mentions that 91% of consumers say they are more likely to shop with brands that provide offers and recommendations that are relevant to them. McKinsey & Company in an article mentioned that nearly 60% of financial-services sector respondents in McKinsey’s Global AI Survey admitted that their companies have embedded at least one AI capability.
An opportunity for banks and credit unions to act as a personal adviser
Despite the shift from brick and mortar services to digital transformation, people still feel the need to consult a personal banker to seek financial advice. Automating financial systems can help banks and credit unions build an ecosystem to cater to the personalized needs of every individual and come up with more customer centric strategies.Though millennials are perceived as tech-savvy but older generations required personal assistance.Things took a turn post lockdown where older people are no more phobic to technology. In the wake of Covid-19, people above the age of 50 have been the fastest growing segment for Paypal in terms of digital payments from March to April last year as per CNBC reports.
Speaking of automation, salesforce.com mentions that 66% of customers expect companies to understand their unique needs. But, only 27% feel Financial Institutions are fully customer centric. Financial Automation doesn’t imply that our customers/ members shall give up on the control of their finances. They are free to decide how much money related decisions they would want to automate. The end consumer would also have access to an array of personalized recommended options to choose from. This way the problem of up-selling and cross-selling gets resolved.
The ideal solution would be to adapt an easy to work tool that could reduce operational efforts and help banks and credit unions leverage their sales effortlessly. No one is born with technical skills like coding. Kapitalwisea is one such platform that helps financial institutions improve its productivity by offering no-code AI platforms to escalate sales, reduce customer acquisition cost and have a relatively higher engagement rate with their customers.