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Prioritizing human-centric digital services

Prioritizing human-centric digital services

As the banking industry evolves, the landscape of physical bank branches is undergoing a significant transformation.

In 2023, a net total of 1,409 branches closed across national and regional banks. While some institutions, like JPMorgan Chase and TD Bank, expanded their physical presence into previously unserved markets, others such as Wells Fargo, US Bank, PNC and Truist have turned their focus toward optimizing digital-first strategies. All told, the concept of a “digital branch” has emerged, encompassing mobile apps, ATMs and kiosks, as banks strive to deliver seamless digital experiences while maintaining the essential “human touch.”

Yet as financial institutions embrace digital solutions, they must be mindful not to sacrifice the personalized, empathetic service that customers expect. Technology has the potential to create cold, impersonal interactions, but it also offers opportunities to enhance customer satisfaction and create moments of delight.

Don’t abandon tradition completely

The introduction of new technologies, such as generative artificial intelligence (gen AI), offers banks the ability to enhance their online services and deliver personalized experiences to their customers. However, it is crucial to balance technological advancements with the traditional elements of customer service that foster trust and satisfaction.

One key strategy is to leverage technologies like co-browsing, virtual tellers and ATM tellers to ensure that customers can engage with a human representative when needed. This approach not only enhances the convenience of digital services but also preserves the personal connection that customers value.

Personalization is another critical aspect of humanizing digital interactions. Financial institutions should aim to personalize every digital moment, from recognizing the customer’s name and account information to offering products and services tailored to their unique journey. For instance, acknowledging the length of time a customer has been with the bank — “Hi Ann, thank you for being a valued customer of XYZ Bank for 14 years”— can go a long way in making customers feel appreciated and understood.

Leading with empathy in digital services

In today’s financial climate, it is more vital than ever for banks to lead with empathy in their digital services. Online interactions should feel as humanized and efficient as interactions with a physical bank teller. Financial institutions must prioritize de-escalating high-stress situations and easing customer anxieties, particularly in a time of economic uncertainty.

One way to achieve this is by considering the implementation of true digital branches. These could include ATMs capable of handling intricate transactions or kiosks that allow customers to open accounts and scan necessary documents. Additionally, equipping teams with analytics tools that provide context to customers’ digital experiences can help banks better understand and address their needs with empathy.

If a customer needs to connect with a human representative, then digital tools, powered by gen AI can help to enhance the empathy of that interaction. Accelerating customer understanding, gen AI can help customer representatives to answer the phone or chat already understanding a person’s issue or need. Imagine never having to explain why you called, let alone repeat it every time you are transferred.

Tangible steps for success

To ensure that they are on the right track as they move services online, banks should consider a checklist of tangible steps:

  1. Incorporate alternative paths: Digital experiences should offer customers additional products or services that may not be immediately top of mind but are relevant to their financial journey.
  2. Leverage quality data: Ensure that AI-powered tools have access to high-quality, relevant data that reflects customers’ current and past engagements, allowing for more personalized and effective interactions.
  3. Iterate and evolve: Continuously improve digital experiences through a customer-focused lens. Regularly monitor, diagnose, and optimize technical errors or performance issues to maintain a high-quality experience.
  4. Human touch in automated systems: Incorporate subtle, yet impactful, elements that bring warmth to digital interactions. For instance, acknowledging life events, offering support during stressful financial periods, or providing personalized financial planning tools can make a significant difference.

As online and virtual banking become the new norm across generations, financial institutions must ensure they do not lose the “human touch” that has traditionally defined their service. By embracing new technologies while prioritizing empathy and personalization, banks can continue to play a pivotal role in their customers’ lives.

Whether planning a wedding, preparing for college, or embarking on a dream vacation, customers will look to their financial institutions not just for transactions, but for support and guidance. By fully integrating these digital innovations, banks can position themselves as full-fledged service firms, enhancing both the financial and emotional well-being of their customers.

Michael Hanson is Regional Vice President of banking, financial services and insurance at Quantum Metric.

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