As today’s top consumer apps incorporate a highly curated experience, consumers expect their banking app to offer the same level of personalization. The key to retaining your account holders and driving growth is to meet their expectations with a tailored experience — one that is more personalized, automated, and proactive.
By choosing a provider that leverages data intelligence tools and artificial intelligence (AI) to elevate the user experience, you can ultimately use the technology to transform the way your account holders interact with their finances.
Consumers Demand a Better User Experience
Consumers overwhelmingly choose digital banking over branches, with 78% now banking online or via a mobile app. And according to a recent Motley Fool survey, 76% would switch banks for a better digital experience. Consumers — especially younger generations — expect intuitive solutions that make banking simple and fast.
Younger consumers also value AI-powered solutions to help them make more informed financial decisions and to get support anytime they need it. According to a survey from The Harris Poll, nearly 60% of Gen Z and millennials would use AI-powered financial education tools to help them make budgeting, spending, and saving recommendations. Additionally, more than half of these consumers are open to interacting with AI-staffed support in lieu of a real person.
Three Ways AI Enhances the Digital Banking Experience
The buzz around AI feels different from past technology trends like cryptocurrency — which generated enormous attention long before delivering practical impact — because AI is already changing how banks operate today. According to PYMNTS, financial institutions that partner with providers that use AI or machine learning technologies had 30% fewer transactions that resulted in fraud losses than institutions that do not use these technologies..
With the right application, AI is a practical tool that helps your institution address real user needs, and when effectively incorporated into digital banking, it has the power to enhance the user’s experience including:
- Providing personalized insights: An AI-driven digital banking solution can analyze account holder behavior to deliver actionable recommendations in real-time, such as providing alerts about upcoming fees or providing notifications about unusual transactions. Ultimately, this type of digital banking solution can help users make smarter financial decisions and take meaningful financial action.
- Improving fraud detection and security: An AI-based fraud solution can help your institution detect suspicious activity in real time without disrupting your account holders’ legitimate banking transactions. Proactive fraud detention helps you build trust with account holders, while keeping operations running smoothly.
- Increasing efficiency with automation, while preserving the human connection: Your institution can use AI-powered chatbots to provide quick answers and support, then add in human interaction to address account holders’ more complex needs. With a hybrid approach, you ensure efficiency without sacrificing the human connection.
Key Considerations for Financial Institutions — and Your Partners
As AI reshapes the financial industry, your institution should approach its adoption with deliberate planning and a thoughtful digital strategy. While evaluating how AI aligns with your objectives, make sure you clearly understand your partners’ approach to its implementation.
Is your partner prioritizing user experience? Incorporating AI should help digital banking become more intuitive, speeding up processes for your account holders. Look for a partner that embraces mobile-first design, as your account holders are increasingly reliant on their mobile devices for banking.
Does your partner emphasize security? Trust is the foundation for every financial relationship, so when working to integrate AI technology into digital banking, be open and clear to account holders about your strategy. By employing strong data governance, you and your partners can safeguard sensitive information and comply with regulations. Additionally, clear communication helps you build confidence with account holders.
Is your partner prepared for the future? As technology continues to evolve, seek a partner that is committed to continuous improvement. Your partner should invest in research and development and offer you flexible integration options. A forward-thinking approach will ensure that your institution’s digital banking platform remains competitive and can scale for growth.
Use AI as a Strategic Advantage
To meet rising consumer expectations, your institution should strive to deliver seamless, efficient, and engaging experiences, and choosing digital banking solutions that effectively utilize this powerful technology can help you stand out in a crowded marketplace and deepen engagement with your account holders. Learn more about how AI is influencing user experience in our new white paper, The Digital Loyalty Dividend: Turning User Experience into Engagement and Growth
