Artificial intelligence brings huge benefits to financial services organizations, but challenges lim
Artificial intelligence brings huge benefits to financial services organizations, but challenges limit its full potential
Artificial intelligence can improve the customer experience, but financial services companies still have the opportunity to take a more customer-centric approach
Mumbai, November 9, 2020 – COVID-19 has prompted financial services organizations to use artificial intelligence (AI) to improve customer experience (CX); however, integration and customer awareness challenges are diminishing its potential. Financial services companies have the lowest large-scale implementation of AI in all industries, and where AI has been deployed, there are still some customer expectations that have not been met-half of the customers said they did not get any from the interaction that supports AI value. According to a report entitled "Smart Money: How to Drive AI at Scale to Change the Customer Experience of Financial Services" released today by the Capgemini Institute.
Over the past three years, the deployment of AI to improve overall CX has grown significantly in the financial services industry. Nine in ten (94%) organizations stated that improving customer experience is the main goal of launching new AI-based programs, and customers are becoming accustomed to interacting with AI. More than half of customers (51%) conduct AI-based interactions with banks and insurance companies every day (such as talking to chatbots); as most customers (78%) expect that as the duration of the COVID-19 crisis increases, non- Contact interaction, this becomes even more important. Financial services companies have realized the positive impact of their bottom-line implementation of AI in customer-facing functions, including reduced operating costs (13%) and increased revenue per customer (10%).
COVID-19 provides an opportunity to accelerate AI deployment to further improve customer experience
Financial services companies say that improving CX is the main goal of launching new AI-based programs. However, as the expectations of some customers have not yet been realized, a clear disconnect is emerging. Almost half (49%) of consumers believe that the value obtained from digital touchpoints supporting AI is non-existent or lower than expected. Customers are increasingly looking for a more humane experience when interacting with AI chatbots, and 35% of them said that their current interactions lack humanity.
The changes in customer behavior driven by COVID-19 provide banks and insurance companies with unique opportunities to accelerate AI deployment. The interaction between customers and AI is directly or indirectly distributed in multiple channels throughout the financial service value chain.
• The majority of consumers (78%) want to use more contactless interactions through voice assistants, facial recognition or apps, compared to 61% of pre-COVID-19 consumers.
• During the pandemic, nearly half (45%) of customers will increase their use of contactless payments.
• COVID-19 is also prompting major changes in the behavior of the elderly, as the adoption rate of contactless payments in the 61-65 age group has increased by 37%, while the population over 66 has increased by 33%.
The ability to expand AI is a challenge for traditional financial services organizations, but not for FinTechs
The organizational benefits that banks and insurance companies can achieve by using AI to better interact with customers are the highest in all industries, while financial services companies have the lowest implementation scale in all industries. Only 5% of banks and 6% of insurance companies are able to deploy AI at scale across multiple touchpoint functions. The biggest challenge is the leadership and organizational boycotts caused by the demand for new skills and concerns about unemployment (reportedly 52% in banking and 53% in insurance). It is difficult to determine the correct use case to expand, the implementation of the long pregnancy and the distrust of high-priced interactions have also become barriers to adoption.
Although traditional players are struggling to implement AI on a large scale, the situation is very different for new-age players like FinTechs. FinTechs is not bound by the same challenges as traditional traditional financial service companies. By using AI-driven solutions to make financial service tasks more efficient, customer interactions are more friendly, and successfully bring higher value to customers.
The benefits of AI for organizations are obvious
Even if compared with other industries, the implementation rate of artificial intelligence is low, and financial services companies have already obtained huge benefits. After deploying AI to customer-facing functions, they reduced operating costs by 13% and increased revenue per customer by 10%. Artificial intelligence has also helped improve customer satisfaction. Banks and insurance companies have witnessed more customer interactions with brands by deploying customer AI. Approximately one-fifth of the industry companies (banks 25%, insurance companies 19%) increased customer engagement by 20-40%.
"Financial services companies can benefit a lot from implementing artificial intelligence in their interactions with customers. They have the opportunity to embrace artificial intelligence to reimagine the customer experience journey, but before they can fully realize the benefits for businesses and consumers, they need to take some steps. "Capgemini Financial Services and Group Executive Board Member and CEO Anirban Bose said. "Organizations need to focus on educating their customers and employees about what AI can do for them. To take full advantage of this powerful technology requires investment and consumer trust. In order to provide the correct consumer-centric artificial intelligence technology, banks and Insurance companies must ensure that they have senior leadership roles responsible for the adoption and acceleration of internal and external artificial intelligence."