Customer Experience In Banking Often Takes Second Place to Savings
Improving #customer #experience at #banks is a challenge and only a small percentage are actively working on i.
Tom Groenfeldt – Financial Technology
Tagged: customer Toggle Comment Threads | Keyboard Shortcuts
-
user
-
user
Popularity of Customer Engagement Tools Reveals Weakness of Cores
SAN JOSE, Calif. — One of the major themes in the first day of Finovate Spring (aside from perennial favorite authentication) was #customer #engagement &8212; having better discussions with customers in a digital environment in order to deliver more relevant products and services. Layer, Eltropy, SaleMove, Flybits, and CallVU all took on this problem in different ways. Layer […]
Bank Innovation -
user
New channels, new voices: Customer engagement goes digital
Leading Accenture’s #FinTech programme is one of the most exciting jobs in the business. It gives me a great ringside seat on the latest innovations in this space and the #digital trends that will transform every area of banking in the next few years. In this, the second blog in my ongoing series, I want to focus on the new #channels that are opening up, and what they mean for how #banks engage with their customers.
Channels are critical. They’re nearly always the first point of contact between customers and financial services providers and, as such, they set expectations around the type of service that’s likely to be provided from then on. Over the years, we’ve seen many startups in the labs looking at this area. No surprise. Digital affords unprecedented opportunities for completely reinventing the quality of experience that customers receive.
Banks are adopting various different strategies for evolving their traditional channels. Some have focused on the branch as a primary point of contact, and branch network optimisation has been a theme for many of our clients, maintaining branches where they identify value and pulling back where they’re either unused or not economically viable.
Some new challengers are going mobile-only. But many in the middle are looking at a whole range of approaches. With #customer #engagement of such high importance, a key priority is enhancing channels to make them easier to use: making use of voice as an authentication tool, for example.
Whatever the course of action, all the initiatives we see have one primary objective: providing an easier and more convenient customer experience. The latest leap forward in this regard is the use of chatbots. These are like ‘live chat’ services that let people interact in real time with online services. The big difference? There’s a robot not a person at the other end of the proverbial line.
Chatbots have been around for years in many different forms. Old-school messengers like ICQ, for example, had a simple version of this #technology that exercised call and response based on hard-coded logic and/or guesswork.
It might seem counter-intuitive that a command line-based interface would be the next big thing. But it’s a trend that’s been prompted by platforms. Facebook’s chatbot platform, for instance, has proved particularly popular with some sectors of the population. So have the platforms offered by WeChat, Snapchat and WhatsApp. The ease of interacting with all of these via mobile has been a major factor in their uptake.
The chatbot model has evolved from answering relatively simple questions to leveraging machine learning, artificial intelligence (AI) and textual analysis APIs to answer more complex ones. These models learn over time, getting better at interpreting our intentions and executing them quicker.
Some chatbots are standalone apps. London-based startups in this space include Plum, Chip and Cleo . Plum’s been promoted as the first AI-powered Facebook chatbot that lets customers ‘micro-save’ small sums without having to think about it. It does this by connecting to users’ current accounts, learning their spending habits, predicting how much they can afford to save and automatically depositing small amounts into their Plum savings account on a regular basis.
Chip’s another micro-saving chatbot. The startup’s USP is that it opted to develop its own iOS and Android chatbot, rather than depending on an existing messaging app. Cleo, meanwhile, is an AI-powered chatbot that lets users check all their bank account and credit card data in one place. By allowing them to keep tabs on their spending, it helps users improve budgeting and get smarter with their money. The chatbot also suggests ways to improve saving, whether that’s rationalising subscriptions or identifying better value financial products.
The next big trend could see people engaging with a bank’s/partner’s third-party proprietary chatbot as a servicing platform (“tell me my balance”, “send money to X”, “tell me when my repayment is due”…etc). A number of players have been looking at how services might be provided through other people’s channels.
But will incumbent banks be willing to provide APIs so they can form part of other people’s bots/platforms (like Monzo’s done by enabling its service to be used on Amazon’s Alexa)? It’s an interesting question. Will they be comfortable with sensitive customer data being relayed through other peoples ‘walled gardens’? In some respects, PSD2 may answer this question for them.
With 2017 being touted as the ‘year of voice’, expect to see more vendors seeking to launch similar propositions to Amazon’s Alexa. As that happened, perhaps we’ll leap from text to voice even quicker than we think. For banks, this will add momentum to their push to reduce the number of calls real people need to answer.
There’s a lot of opportunity right now. But banks should exercise caution in how they expand the channels through which they engage—and as they move forward, do so consciously and strategically. Otherwise costs will continue to go up, with customers fragmented across both low- and high-cost channels. Leaders in this area will have a clear point of view on their channel strategy, and they’ll apply this thinking to their response to PSD2/open banking.
That said, people still like to talk to people. And that’ll never change. We’ll be watching closely to see how this space evolves.
Thanks for reading.
The post New channels, new voices: Customer engagement goes digital appeared first on Accenture Banking Blog.
-
user
Paving the way for a new anti-money laundering and know your customer talent solution
In this blog series about anti-money #laundering programs and #know your #customer initiatives (AML/KYC), we’ve explored the challenges and associated regulatory requirements that come with these efforts. We’ve also taken a deep dive into how financial firms can manage these programs, whether via home-grown #talent, explored in our paper, Leveraging enhanced talent development programs to increase anti-money laundering workforce effectiveness, or via a managed services effort or even robotic process automation (RPA), as described in our paper, Anti-money laundering and know your customer programs: sustainability through managed services, and its corresponding presentation.
We have noted that many options are available, and that financial firms might often benefit from a mix of approaches. We’ve even looked at some of the factors that can help a financial business decide on the right approach.
The next step on this journey, then, is getting ready.
Talent building
If your aim is to build talent in-house, you can adopt a few strategies to get your AML efforts up and running:
- Establish a formal AML training program. Treat this program as an ongoing business investment in operational risk reduction.
- Build a role-based program, aligned to the business’s competency models and that allows for certification.
- Include blended learning approaches and build in ongoing reinforcement techniques.
Managed services
If you are aiming toward a managed services AML/KYC model, these are the basic steps:
- Agree on your effort’s scope, and map out a transition plan.
- Don’t lose sight of key plan elements such as standardizing processes, choosing a location and updating relevant training, which may or may not dovetail with the training approach above.
- Following the transition, keep an eye out for added efficiencies and ongoing improvement opportunities.
- Keep an eye on the critical issues, such as transparency
RPA
Finally, if you’re aiming for an approach involving RPA, some of your steps will be similar to those for managed services. You’ll want to:
- Define the scope of your effort, and map out your change plan.
- Know the regulatory considerations involved in outsourcing your AML/KYC function.
- Establish your outsourcing plan, including the contractual provisions, for greater clarity and be certain of the scope that will be covered.
These are only some of the steps you’ll want to take, and if your business is like many, you may well be combining several approaches in your comprehensive plan.
Managing your AML/KYC workforce talent can be challenging, but help is available. As we’ve seen over the course of this series, a powerful #solution is within your reach.
The post Paving the way for a new anti-money laundering and know your customer talent solution appeared first on Accenture Banking Blog.
-
user
What’s the best anti-money laundering and know your customer approach for your business?
In this series, we’ve looked at new challenges financial firms face with regard to anti-money #laundering and #know your #customer regulations (AML/KYC). Our paper, Anti-money laundering and know your customer programs: Sustainability through managed services, and the companion SlideShare consider the various challenges facing firms. We hone in on workforce challenges, in particular, in Leveraging enhanced talent development programs to increase anti-money laundering workforce effectiveness.
There’s good news! In this series we’ve explored several options and alternatives for building a strong AML/KYC program and workforce, whether using home-grown talent, managed services or virtual help.
The question, though, is: How can an enterprise choose the #best, most appropriate solution for the set of concerns it faces? Should a particular process be handled by robotic process automation (RPA), a managed services team or an internal resource?
Continue reading the post What’s the best anti-money laundering and know your customer approach for your business? on Accenture Banking Blog.
-
user
How Much Does It Cost to Shift Customer Behavior?
Mobile wallets have failed so far because they haven’t offered customers a strong enough incentive to use them versus cards. The exception, Starbucks, offers free coffee, but it did that with its gold cards too. LevelUp, into which Chase poured $ 10 million in December, offers its loyalty-heavy solution to merchants as well — spend $ 50, […]
Bank Innovation -
user
Corporate payments: Catching up with the customer experiences of digital transactions
Read the full report
In the new world of #digital #payments, many #technology developments are driven by #customer #experiences. #Banks are investing heavily in technological innovations and #Fintech relationships to provide better payments experiences to their customers. Even so, there is a stark contrast between the payments experiences of retail customers and #corporate customers. While retail consumers can enjoy seamless, immediate, always-available payment services with advances such as mobile and contactless payments, corporate customers struggle with rigid paper-based processes, fragmented products and relationships, poor visibility into payment flows and more.
However, I see a shift starting to happen in the corporate payments landscape as corporates start demanding the ability to transact in real-time, in an omni-channel environment, 24/7. Banks such as HDFC, HSBC, and others are already launching their corporate mobile solutions in areas including cash management, trade services, reconciliation, authentication and operational support.
Market dynamics are driving corporates to restructure their operating models, and are driving banks to adapt their corporate payments offerings to meet these new expectations (as shown in Figure 1):
Figure 1
The (re)emergence of virtual accounts is a key trend to watch, with banks such as BNP Paribas, RBS and Barclays leading the way in offering virtual accounts to their corporate customers. Virtual accounts provide corporates with better control over their cash management accounts, reduce administrative costs and optimise the number of real bank accounts, thus eliminating the need for cash management products such as notional pools (at least in the same currency). Banks can also consider extending virtual account management features in a multi-bank environment for the corporates who bank with multiple banks.
Corporate portals are another product that banks such as CitiDirect, J.P. Morgan and Barclays have in their corporate payments service portfolio. A corporate portal presents corporate customers with a single view of all their banking services and activities, and for banks it can support greater cross-sell of products, making it easier to roll out new and enhanced digital services.
Key features include:
- Multichannel access, seamless user experience across web, mobile devices and offline channels
- Availability of 24/7, real-time, up-to-date information
- Integration with corporates’ ERP systems and banks&8217; infrastructure
- Tiered dashboards at the enterprise/product/business level with decision-making tools
As banks strive to deliver against corporates’ expectations, they need to invest in new payments technologies, move closer to corporate customers, and integrate themselves into their value chains. If banks themselves don’t move quickly to seize this opportunity, then somebody else will do it first—thus relegating banks to back-office utilities running accounts for others’ front-office payments offerings.
At Accenture, we recommend banks focus on the following three key areas to sustain corporate relationships and grow future revenues from an expanding array of solutions centred around corporate payments:
- Become a trusted adviser on corporate customers’ problems; don’t just sell corporate payments products.
- Collaborate and partner (instead of competing) with Fintech companies to provide innovative digital services.
- If you’re a local bank, use digital to stay relevant and compete with global banks.
Accenture recognizes the challenges banks will have in balancing innovation with handling ‘run-the-bank’ issues such as regulation and the inflexibility of legacy systems. Those banks that can execute on both fronts most effectively will win out in the race to forge durable, profitable relationships with their corporate customers.
Read more in the full report, Transforming the corporate payments landscape
The post Corporate payments: Catching up with the customer experiences of digital transactions appeared first on Accenture Banking Blog.
-
user
Tackling anti-money laundering and know your customer talent concerns? You’ve got options.
In my last post, we talked about the need for alternate options for some financial enterprises when it comes to cultivating AML/KYC talent. Accenture has taken an in-depth look at #talent solutions for anti-money #laundering and #know your #customer (AML/KYC) in our paper, Leveraging enhanced talent development programs to increase anti-money laundering workforce effectiveness.
We’ve also explored the broader #concerns around AML/KYC compliance in our paper, Anti-money laundering and know your customer programs: Sustainability through managed services, and the accompanying presentation.
Talent development for AML/KYC is a specific concern, and one not easily solved for many financial firms. Fatigue and turnover are high, hiring is challenging in a saturated market, and learning programs may not have kept pace with current industry and regulatory trends.
So what alternatives are available to firms for meeting KYC/AML requirements?
Accenture suggests three options to consider:
-
Efficiently boosting AML talent:
Here, a three-pronged approach might work. Step one is to establish a formal learning program, positioning AML/KYC as a function in which the business can invest. Next, the programs themselves may best be designed to offer role-based training, aligned to the business’s competency models and complete with certification requirements. Finally, the program could include blended learning approaches, and include ongoing reinforcement techniques.
These steps can help create a robust AML/KYC workforce over time.
-
Migrating to a managed services model:
For those organizations that choose migrating to a managed services model to handle AML/KYC, many benefits can be had. Why? Some businesses might find their current model is built on inefficient or manual processes. Sustaining these at the higher level needed to support new AML/KYC work might not be feasible, and upgrading the old model might not be an option either. Then there’s the flip side. For some institutions, finding the right resources to support an existing model that is updated to include AML/KYC may be a challenge.
By contrast, a managed services approach brings reduced costs, better access to the right skill set, global capabilities, scalability and improved quality throughout the AML/KYC program. For many, this option is worth considering.
-
Adding robotic process automation to the mix:
There’s one more step down this journey: Adding robots or, in essence, using #technology to automate processes otherwise done by humans. Robotic process automation (RPA) offers advantages that humans can’t: It gets the job done, and also records and remembers the details of the job, bringing more data into the picture.
The idea of RPA is not new and it isn’t entirely unexpected either; our supporting presentation on the topic notes that 84 percent of banking executives surveyed by Accenture anticipate having to “train” their machines as much as they train their people in the future.[1] RPA brings even more dynamic capabilities than managed services, handling higher demand as easily as it knocks off lighter loads. Robotic processes can take place on a 24/7 basis, too.
View the presentation
Combing through the AML/KYC effort, financial firms may identify sub-processes or elements suitable to RPA, such as highly manual, high-volume efforts where the potential for error is high. These pieces might be prime candidates for RPA.
With all these #options available to financial firms, how can each enterprise go about choosing the approach that is right for them? If a combined approach makes sense, what pieces should be combined, and how?
My next blog will take a look at how firms can choose the best approach for their AML/KYC model.
[1] Accenture Technology Vision 2015 Survey
The post Tackling anti-money laundering and know your customer talent concerns? You’ve got options. appeared first on Accenture Banking Blog.
-
-
user
Chase and Intuit Launch API for Secure Customer Data Sharing
#Chase and #Intuit may have just solved the main issues with account aggregators. The companies signed an agreement this morning, giving customers the option to authorize Chase to electronically share financial #data securely with Intuit’s financial management applications, such as Mint, TurboTax Online and QuickBooks Online. #Banks, and Chase inRead More
Bank Innovation -
user
Can Pokémon Go and augmented reality improve customer experience in banking? [SPONSORED]
By now, even if you are not into Pokémon yourself, you have probably heard of the Pokémon Go phenomenon that has swept the US and other countries in the last several weeks.   Ever since Niantic, Inc. launched the Pokémon Go mobile game on July 6, #augmented #reality (AR) hasRead More
Bank Innovation
Reply