Monday, October 21, 2019
Trends

4 Financial Services Technology Trends Shaping CX

Liz Alton
October 10, 2019

3 minute read

This is a preview of the ebook “Moments That Matter: A New Customer Experience Roadmap for Financial Services“.

Financial services technology isn’t just helping brands gather better data about customers. It’s also driving better customer experiences by helping businesses identify the moments that matter most to customers — such as going to college, buying a home, or retiring — and then allowing financial services brands to respond proactively.

Here are 4 trends in financial services technology that are redefining CX in these important life moments.

Developing a unique customer identity

Today’s sophisticated technology solutions are helping brands form well-rounded views of their customers’ data. For example, a financial services brand can now see on a single screen a customer’s bank balances, investing activity, credit data, and other products with the bank.

This can help identify a customer who’s eligible for a loyalty program or a special rate due to the volume of business. When customer data offers 360-degree visibility, brands are better positioned to understand the total relationship and offer targeted insights.

Translating data into “moments that matter” identification

According to McKinsey’s “Capturing Value from Your Customer Data” insights piece, businesses that leverage customer data outperform their peers in sales by 85%. Technology helps turn data into insights — for example, when a customer calls a mortgage division to ask about financing, the right tech tools can help connect them to relevant insurance offers.

Responding to customers’ important moments — from job changes, to family changes, to large personal achievements — is transforming the dynamics of how financial services brands interact with customers from passive to active.

Segmenting responses to the moments

Customers want offers that are relevant to their needs. For example, a customer who’s searching a financial service provider’s help page for information on merging accounts with a new spouse might be interested in products such as wedding loans. Adlucent research shows that 7 in 10 people want personalized ads; however, they also have concerns about privacy and data collection. Integrated CX technology allows brands to use the information they already have to better target their audiences.

Streamlining the process

Increasingly, the financial services sector is seeing competition from agile funders. Platforms like Kabbage and PayPal Working Capital use a proprietary algorithm based on sales data and other information to give small business customers a lending decision in minutes. Traditional financial services brands are working to remove friction from complex processing. With CX technology, it’s possible to create a workflow that uses advanced decisioning across the bank’s systems to make a series of small decisions quickly. Not only does this speed up the customer experience, but it helps eliminate the risk of errors or compliance violations. When timely decisions and funding matter during customers’ most important moments, they appreciate a streamlined process and remember that a financial services experience was a positive one.

Customer experience technology is enabling a whole new depth of exploration and engagement, and is helping reshape the way financial brands serve their customers. By understanding the full picture, identifying big life moments that matter, having relevant products and offers ready to discuss, and streamlined processes to execute, financial services orgs are taking a quantum leap in their customer experience.

Liz Alton
Liz Alton
Liz Alton is a writer and content strategist specializing in B2B technology, digital marketing, and the customer experience. Her clients include creative agencies, Fortune 500 brands, and venture-backed startups.
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