In the midst of a digital revolution, the financial sector has remained very quiet whilst other industries are increasingly implementing new technologies. This has allowed start ups to dominate fintech, leaving high street banks in the dust.
Although banks have implemented emerging technologies within their structure through the use of mobile apps since 2007, the technology currently used by mainstream banks is not reflective of the developments within other industries.
Due to the increasing impact technology is having on our every day lives, customers are demanding quicker, easier and more cost-effective experiences. Retailers are constantly seeking new, innovative ways of improving the customer experience through emerging technologies, and users are now expecting this from their banks.
Currently, mobile banking apps are at the forefront of high street banking technology, but fintech is beginning to pose a significant threat to high street banks by creating more advanced banking solutions.
The technology has the potential to present users with 24/7 access through mobiles, processing transactions simply with a tap and minimal transaction fees, and ETF (exchange-traded funds) designed by AI, based on consumer choices regarding saving goals and risk appetite.
As well as offering a seamlessly, transparent way of banking to individuals and reduce costs, whilst simultaneously increasing productivity for companies, emerging technologies like artificial intelligence can give users a personalised experience that current high street banking experiences could not rival.
AI Finance Assistants
Cleo is a great example of how a chatbot can used to create a personalised banking experience. Cleo allows users to access real-time information about their finances, providing banks with a cheaper alternative when giving advice. Using AI technology, Cleo essentially becomes a personalised banking assistant, learning about an individual’s monthly spending activities, their saving goals and can create monthly budgeting plans for a user.
Chatbot and AI technology can provide instant replies, build a more personalised and integrated customer experience, and combines the convenience of technology with the human touch. It can access interest rates, provide live exchanges and offer impartial advice to users wherever and whenever they need it, through popular messenger apps.
In the future, this technology could develop to incorporate voice interaction, allowing for more general usage within homes and cars and could even offer branches and ATM the potential of being able to recognise an individual when they walk through the door. These could incorporate popular AI assistants like Siri and Alexa.
Companies could also offer an additional service for it’s premium customers through this technology by providing a personal concierge. Using voice activation and optimising search tools, users can potentially purchase products and services securely through the chatbot without even pressing a button. Natwest do offer a similar service, however, this is staffed by humans and cannot compete with the 24/7 instant access of an AI concierge.
It is important for high street banks to recognise the technological advances and changes within the financial sector. Although some customers may be sceptical to change, these technologies will force clientele to rethink and seek new innovative ways to deal with their finances. The success of new fintech start up companies demonstrates the interest in efficient financial services and high street banks who choose to ignore these developments may find themselves left behind.
Get in touch with B60 to discover how to improve your customer high street banking experience.