In Focus Collections
AI in customer experience for financial services
While AI has provided significant benefits for financial services organisations, challenges have limited its full potential
Anirban Bose Member of the group executive board, Capgemini Financial Services
COVID-19 has catalysed financial- services organisations to harness Artificial Intelligence (AI) to improve customer experience; however, challenges in integration and customer perceptions are undermining its potential. Financial services firms’ implementation of
AI at scale is the lowest across all industries, and where AI has been deployed, there are still some customer expectations that are not being met – with half of customers saying they receive no value from AI-enabled interactions. This is according to a report by the
Capgemini Research Institute entitled, “Smart Money: How to drive AI at scale to transform the financial services customer experience”. The deployment of AI to improve the
overall customer experience has grown significantly in the financial services industry in the past three years.
Nine in 10 (94%) organisations say that
improving the customer experience is the key objective behind launching new AI- enabled initiatives and customers are becoming comfortable in interacting with AI on a regular basis. Just over half of customers (51%) have
daily AI-enabled interactions (like talking to a chatbot) with banking and insurance firms; this becomes even more important as most customers (78%) expect to increase touchless interactions as the COVID-19 crisis prolongs. Financial services firms have already
perceived the positive impact on their bottom-line of implementing AI in customer- facing functions, including reduced cost of operations (13%) and increased revenue per customer (10%).
COVID-19 acceleration Financial services firms say that improving customer experience is the key objective behind launching new AI-enabled initiatives. However, a clear disconnect is emerging
Financial services firms’ implementation of AI at scale is the lowest across all industries, and where AI has been deployed, there are still some customer expectations that are not being met – with half of customers saying they receive no value from AI-enabled interactions
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as there are some customer expectations that are not yet being met. Almost half (49%) of consumers rate the value they derive from AI-enabled digital touchpoints as non-existent or less than expected. Customers are increasingly looking for a
more human experience when interacting with AI-powered chatbots, and 35% say that their current interactions lack the human touch. COVID-19-driven changes in customer
behaviors offer a unique opportunity for banks and insurers to speed AI deployment.
www.CCRMagazine.com
l Customer interactions with AI are directly or indirectly spread over multiple channels throughout the financial services value chain. l A majority (78%) of consumers expect to use touchless interactions more, through voice assistants, facial recognition or apps – compared to just 61% pre COVID-19. l Close to half (45%) of customers will increase their use of contactless payments during the pandemic. COVID-19 is also prompting a major
behavior shift by older consumers as contactless payments adoption has grown by 37% in the 61to 65-year age group, and a 33% increase with those over 66. Ability to scale AI is a challenge for
traditional financial services organisations, but not for FinTechs While the organisational benefits that
banks and insurers can realize by using AI in better engaging with their customers are the highest across industry sectors, financial services firms have the lowest scaled implementation across all industries. Only 5% of banks and 6% of insurers
have been able to deploy AI at scale across several touchpoint functions. The biggest challenge is leadership and
organisational resistance driven by anxieties about the need for new skills and job loss fears (reported by 52% of banking and 53% of insurance). Difficulty in identifying the right use cases to scale, long gestation periods for implementation and lack of trust for high-priced interactions also are barriers for adoption. While traditional players are struggling with AI implementation at scale, it is a
January 2021
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