Current banking clients (with their behavior and expectations) have forced financial institutions to redefine their positions towards them. One of the key aspects of this process is the change from “traditional paradigms” towards an agile banking model. Financial services and products are offered to customers, who solve their problems quickly and effectively.

Towards hyperpersonalization

Hyper-personalization allows banks to respond to the specific needs of their clients, in addition to establishing brand differences, driving new revenue, and contributing to financial inclusion; the pandemic has helped in this sense by “driving” the demand for noticeable changes regarding online banking services; for example, now customers also demand personalized digital attention (which was only focused on the face-to-face part).

Influence of social media

Internet, mobile devices, and social networks make consumers demand user-friendly experiences and greater fluidity; users want to manage their financial activities with the same ease they manage their favorite social networks such as Facebook or Instagram. However, the level of development in terms of user experience is higher in social platforms than in banks since social platforms constantly make improvements and updates focused on making their platforms more and more intuitive.

Although banks can implement certain measures to improve their users’ online experience, the truth is that they will always be one step “behind” social platforms unless their own platforms are innovative and “challenging.” “Challenging” digital platforms allow financial institutions to differentiate themselves by personalizing their services, automating their processes, and creating deeper connections with their end-users.

Where is banking headed?

Banking is heading towards an omnipresent future in which devices, data, services, and technology are connected to create new digital experiences, always focused on the customer. According to a recent report, 40% of young people between the ages of 18 and 44 are open to innovation, which indicates an opportunity to group all banking services with their users’ access channels, highlighting the need for banks to adopt a multi-channel approach, leading to banking to a personal digital ecosystem of its customer.

The role of chatbots

Chatbots are applications based on artificial intelligence. A conversation with a person is simulated, giving an automated response to customer concerns; that is, customer service automation. In this case, conversational artificial intelligence plays a fundamental role in the way banks interact with their customers, providing personalized experiences.

Chatbots are improving those experiences and will continue to do so for a long time to come. Interactions that were previously long and tedious are reduced to a single voice command, and in this way, customer trips to the bank become omnipresent as they move between the device and the chat voice. Forecasts estimate that by 2024, there will be 8.4 billion voice assistant units.

The benefit of using artificial intelligence and its advanced natural language processing capabilities will continue to evolve from initial design to provide higher quality answers and guidance to an ever-expanding range of queries. It will be able to recognize the different terms of its clients and introduce new products and services, in the case of helping users in consulting their accounts.

Financial inclusión

Personalized banking experiences are also beneficial to increase financial inclusion. Currently, minimum bank thresholds are very high, making it impossible for some clients to access them; for example, if a share costs $ 1,000, fractions can be traded for small investors to participate. Using this same principle, there are microcredits, microinsurance, and micro-savings in the banking issue, which allow low-income people to be part of the banking and financial system.

What do you think about this topic? What do you think about personalization in banking and financial services?

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