The rising banking trend in 2021 is leading towards using tech for improving customer service in banking, financial services, and insurance (BFSI). As banking is increasingly becoming mobile and online driven, the Banking Industry needs to update its technological standpoint to reach out to these customers who primarily depend on tech to access their accounts.
In a recent study by Business Insider, figures showed that nearly 97% of millennials were using mobile banking for their financial needs. It goes without saying that banks need to meet these users halfway to improve their customer service, increase retention and life cycle of customers, and engage consumers.
What is the driving force of marketing automation for the BFSI sector?
a) An untapped market
The BFSI sector is in the process of seeing exponential growth in the coming years. The latest figures show that nearly 190 – 200 million young Indians do not have a bank account and will be engaging with the banking industry for accounts, insurance, loans, and other financial products.
b) Doubling of technology
Over the last 4-5 years the amount of internet and technological penetration in the country has doubled many times. Internet banking and the use of payment vendors have become extremely popular. Automation is a must for engaging with customers, be it at the customer acquisition stage, or when offering seamless customer service.
c) Ease of implementation
The availability of marketing tools is becoming more accessible and readily available to use. Automation of banking services is quick and cost-effective, requiring fewer customer service personnel.
d) Fewer errors when using digital automation
Digital automation is quick and error-free when managed properly. When it comes to customer service, a well-developed automation plan with the right use cases can do the same job as that of innumerable personnel, only better.
What are the five checkboxes that BFSI must evaluate before automating their customer service?
- A mobile-ready approach that gives more importance to creating a tech-friendly strategy that engages users who use phones and net banking.
- An easy-to-implement plan that requires minimum upheaval of the present strategy.
- An across-the-board approach that automates all your banking services, leaving none behind.
- Is it possible to have advanced automation features such as the semantics of workflow and push amplification?
- Process automation that enhances the security of data.
Four questions that every BSFI must ask itself before realizing the need for automation.
- Are my customer’s digital-first users who rely on technology for banking services?
- Have I classified my customers into target groups or are they all of the same kind?
- Can I rely on cross-platform communication to reach my customers?
- Are my acquisition and retention costs high and will digitizing bring down costs with the same or better results?
What are the key advantages that automation brings to the banking sector?
a) Result forecasting
Automation can forecast the next move of consumers using artificial intelligence and calculative algorithms. Automation can analyze the past behaviors of customers and then offer them banking products according to their individual needs.
b) Cognitive system automation
Cognitive system automation brings down the errors and expenses for those services that are information heavy and error-prone – such as banking claims and credit management. Cognitive system automation can intelligently predict ROI and reduces costs as per the user’s profile.
c) Improved customer satisfaction
Customer service is highly regarded in the banking service. Automation can offer improved customer service with greater efficiency to customers. This will increase the number of customer acquisition and retention.
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