A look at the banking experience in 2021 and trends for 2022: the integration of conversational banking and artificial intelligence
According to LivePerson, a global provider of conversational marketing solutions, we witnessed profound digital transformation of the banking industry in 2021. This was due to an increase in the use of mobile banking services, more remote communication with relationship managers, and, above all, a steep rise in the number of mobile bank registrations since April 2020. All of this has transformed the user experience in the banking industry with significant use of conversational banking.
User experience as a key differentiator between banks
User experience has become a metric of a bank's success. About 80 percent of people would switch banks today if a competing bank offered a better user experience. Since interest rates are still extremely low, banks offer customers fairly similar loan terms and the differences are not as evident. As a result, user experience becomes the key differentiator.
Digitally mature banks understand that flexible customer interactions and personalized communication through digital channels are essential components of the user experience. Thus, they are already incorporating conversational commerce approaches into their services, which strengthen customer relationships and increase satisfaction in a new reality where customers want solutions here and now.
Current data from renowned consulting firms shows that mobile banking traffic has increased 50 percent globally since 2020, video calls with relationship managers have increased threefold, and mobile bank registrations have risen 200 percent since April 2020. These shifts in the use of modern banking services point to long-term and permanent changes in the user experience in banking.
FiServ is undergoing a massive digital transformation
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Mobile banking traffic increased 50% globally in 2020 (Forbes)
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3x increase in video calls with relationship managers (Bloomberg)
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In April 2020, new mobile bank registrations jumped 200% globally (CNBC)
Conversational AI drives added value for banks
To create an above-average user experience, modern banks develop business models based on personalization, multi-channel approach and 24/7 support and direct communication with their customers, which is friendly, accessible and above all fits an individual’s purchasing decision-making process.
Banks can turn to technological solutions powered by what’s called conversational artificial intelligence to solve customer challenges twice as fast, automate the most common customer interactions by automating repetitive questions and answers, identify customer purchase intent, and deliver relevant offers through bots combined with consultant support.
Conversational AI drives significant value
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Agent productivity doubles
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Reduced labor cost per interaction by 50%
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Up to 20 point boost in CSAT scores
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90%+ first contact resolution, reducing repeat inquiries
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Agent attrition down to 20% from 70%
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90%+ automation rates on key intents
Today, customer loyalty is replaced by a loyalty to an experience, which grows from a user experience that is consistent, clear, trustworthy and responsive. Investments in digitization, digital solutions and conversational commerce are therefore not only useful but also essential. Conversational technology and conversational banking solutions can be introduced gradually, using conversational AI and advanced analytics to ensure not only greater precision but also efficiency.
The latter is expected to be a key factor of success in 2022 as consumers become more cost conscious and media use digitalisation accelerates.
