Leading finance firms are starting to reap the rewards of their early investment in emerging technology, such as chatbots used to deliver automated advice that is impartial and fully customized. A renewed focus on improving the customer experience is now turning their attention to distributed ledger technology, artificial intelligence, extended reality and quantum computing (or DARQ, as Accenture calls this technology quartet). Obviously, the FinServ digital experience is a topic on the industry’s mind.
The vast majority (96%) of banking executives said that new technologies have accelerated their pace of innovation over the past three years. Encouragingly, nine in ten banks are already experimenting with one of more DARQ technologies. Artificial intelligence (AI) is leading with 43% adoption, slightly lower than the 48% in insurance. This is not surprising when factoring in the 20-25 % cost savings banks can expect from augmenting their operations with AI.
How Finance Views Tech Today
However, the technology wave sweeping through the finance industry is seen as both an opportunity and a threat. Nearly a third (32 %) of financial services CEOs regard ‘speed of technological change’ as a top threat to their organizations, compared to 28% across all industries.
Competitive forces continue to intensify, which puts further pressure on finance organizations to elevate the services they provide with the help of technology. After disrupting the traditional advisory services space with passive asset management and low minimums, the robo-advisory sector is expanding into deposit banking with cash management programs and high-yield savings accounts. According to The Robo Report, “the expansion from digital investment advice to cash management and banking is well underway. These attractive offers from fintech companies will continue to ramp up competition amongst traditional financial advice firms and banks.”
Three Ways Financial Services Professionals Can Step Up Their Digital Game Today
Make engagement a strategic pillar, shaping everything you do
In the highly competitive finance world, companies that succeed will be the ones that build trust and foster ongoing engagement. Use an array of engagement strategies and tactics to stand out from the pack and meet your customers where they are.
Combine human interaction with technology to facilitate seamless interactions
The race to adopt new technology has inadvertently removed the personal touch. But human touch still has a place in this high-tech world, and future success will be very much dependent on the ability to combine the best aspects of technology with the human advice-driven model into one seamless customer experience.
Webinars help educate and inspire and make audiences feel more empowered.
Draw on your organization’s specific specialisms and offer a combination of data, research and evidence to showcase your expertise. Putting your audience’s needs first is key, and educational content is the best way to do that.
Tech Comes to The Rescue
Ironically, it is technology that will help finance organizations regain the customer intimacy of the past by uncovering interests, behaviors, likes and needs. Most banking executives believe that digital demographics will enable them to identify unmet customer needs and expand the way they deliver products and services.
As emerging technologies become the table stakes of the future, finance organizations can’t afford to be hesitant about the priorities they should pursue. Unlocking their full potential requires agility and commitment to innovation as well as getting the basics right: understanding what customers need and meeting those needs. And the end of the day, the FinServ digital experience is set to improve.
Discover how professionals in the financial services industry can provide a better digital experience with ON24’s Webinar Benchmarks Report: Financial Services Trends.