Improving the Customer Experience With AI: A Key Priority for US Banks

In today’s dynamic banking landscape, the emergence of challenger banks and the influx of fintech companies have created many options for customers. As a result, customer expectations towards traditional banks and financial institutions (FIs) have significantly transformed.

At the same time, the 2020 pandemic-induced lockdowns sparked a significant increase in e-commerce and online retailing, bringing about a transformative shift in customer expectations for their banking tansactions. Bank customers desire convenience, instant access to information, personalized recommendations, and exceptional service.

With the convenience of digital platforms, customers find it easier to explore and engage with a wide range of banking products and services. Here are a few ways customer expectations are changing regarding their finances and how banks can meet these expectations, particularly community ban.

Customers Want Personalization and Tailored Experiences

Customers do not desire a one-size-fits-all approach. Instead, they expect personalized experiences tailored to their specific needs and preferences. Banks must deploy AI technologies that enable them to analyze customer data and offer personalized recommendations, whether it’s for financial products, services, or relevant educational content. Personalization fosters a sense of trust and loyalty among customers, creating long-lasting relationships.

Customers Expect Proactive Financial Guidance

Studies have found that personal financial management is highly desirable across generations. They seek advice on achieving their financial goals, whether saving for retirement, buying a home, or managing debt. It is a strategic opportunity for community financial institutions or small and mid-sized banks to increase penetration and drive growth. Banks can leverage data analytics and AI to provide personalized financial insights and recommendations to help customers make informed decisions.

Customers Look for Seamless Omnichannel Experience

In a survey, over 80% of US digital banking customers mentioned a good website or app as their top requirement when choosing a new financial service provider. Customers interact with their banks through multiple channels, such as websites, mobile apps, call centers, and physical branches. They expect a seamless experience across all channels, where customers can start a transaction on one channel and easily continue it on another. An integrated banking system ensures consistency and coherence in the customer journey.

Customers Seek Enhanced Convenience

Customers today want seamless access to banking services – whether it’s through traditional branches, mobile apps, or online platforms. They expect 24/7 availability, self-service options, and instant access to information. Banks must adapt to these demands and provide robust digital solutions to gain a competitive edge.

Customers Prioritize Security and Fraud Prevention

Customers are sensitive about whom they share their data with and how FIs guard against fraudulent activities. They expect their banks to employ robust security measures for data protection. Thus, banks must upgrade their security technology and even install AI-powered fraud detection systems to gain customers’ confidence.

Final Thoughts

By addressing customer demands, banks can position themselves as trusted financial partners and differentiate themselves from the competition. Community banks have a unique opportunity to leverage their agility and customer-centric approach to lay the foundation for long-term success.

Posted on July-03-2023