The way for banks to stay at the top of the list with customers
Traditionally, banks have focused on availability for key life stages of their customers, such as saving for college, birthing a child, buying a car, or buying money. a house. In today’s landscape, however, banks need to do more to stay at the forefront of customers and help them manage their overall financial well-being.
With this in mind, it is more important than ever for financial institutions to consider the lifestyle of customers in order to find natural points of contact. Being present and relevant in their daily moments will naturally also bring them in their memorable moments.
Banks can – and must – rethink their technology strategies and offerings in order to be more present in the daily lives of customers as a trusted resource to help them manage everything.
Artificial intelligence and machine learning can offer the customer proactive solutions that help demonstrate the value of the bank. According to Insider Intelligence’s AI in Banking report, 80% of banks are very aware of the potential benefits presented by AI, and a research report by the Economist Intelligence Unit found that 86% of financial services executives plan to ” increase their investments in AI in 2025.
Even though banks are eager to reap the benefits of AI, it can be difficult to get started. It is a question of where to start. There are many use cases for how AI and machine learning can help the bank use what they know about their customer to keep them informed and on track when it comes to tasks such as managing payments. The bank must ultimately be able to match what customers want in terms of service with great banking experience.
Take the example of paying bills. AI and machine learning can proactively alert customers to invoices that are coming soon or late, or notify customers if they don’t have enough funds to cover their invoices. Technology may also suggest that they save the remaining funds after monthly bills are paid and offer bill negotiation services if a customer thinks they are paying too much.
Why staying at the top of the list is essential
Being viewed as a trusted advisor and resource is the key to success in a highly competitive financial market. Outside players are constantly competing for customers – if a bank does not provide a valuable payment service, customers can easily find one elsewhere, including from various applications and non-bank entities that already provide personalized service.
The simple task of helping clients proactively manage their finances is more important than ever. Consumers today expect technology to do everything for them and they don’t seem to care who provides the technology, as long as it makes their lives easier. Banks need to be able to provide the same level of service that their customers see in retail and e-commerce. The best experience for a customer, regardless of industry, will be their new expectation.
In the BCG 2020 Retail Banking Advisory survey, 37% of respondents said they wanted their financial institution to be more like Amazon and 29% of respondents wanted their financial institution to be like a personal buyer. People want simple and convenient, and their bank is no exception.
Amazon is a great example of knowing, based on a customer’s past choices, what they would like to try or might need to redeem. UberEats recommends ordering your favorite foods. Maps knows where they want to go before they even get in the car. To stay relevant, banks must also embrace this strategy of predicting behaviors and delivering actionable insights to better engage with customers.
Banks have a wealth of data about their customers and, combined with technology, have a real advantage in delivering the kind of personalized experiences that customers will appreciate.
The bank’s goal should be to deliver value every day, every moment, not just when customers reach life’s milestones. AI and machine learning help banks proactively deliver value to each individual customer, based on their unique needs.
When banks can show the day-to-day value they are able to bring as a financial advisor, they can not only compete, but also win against the big banks and fintech competitors who prey on customers and consumers. their loyalty.
Mickey goldwasser is Vice President of Marketing and Chief of Staff at Payrailz.