How Financial Services Providers can Capitalize on ... · new ATM with Teller Assist, touted as...
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HOW FINANCIAL SERVICES PROVIDERS CAN CAPITALIZE ON EMERGING CX TECHNOLOGIES
This new era of opportunity is without question redefining customer experiences
and expectations. Just consider the rising generation of millennial consumers—the
largest in U.S. history—positioned to drive the market forward. Research shows that
63 percent of these consumers don’t own credit cards, 27 percent would consider
doing business with a digital, branchless bank, and over one-fifth have never written
a physical check to pay a bill. It’s no wonder this group is touted as the “unbanked
generation.”
With more intelligent, adaptive and connected capabilities comes greater demand
for quality, agility and speed. In today’s smart, digital world, consumers expect
nothing short of a sophisticated banking experience that meets their evolving
needs. This could mean an integrated mobile banking app that conducts real-time
spending analyses to offer personalized money management strategies. It could
also mean leveraging big data to conduct behavioral analytics that drive
anticipatory engagement.
This whitepaper will explore these scenarios and more - discussing how FSPs can
achieve high-impact digital transformation by leveraging technologies such as
video, biometrics, artificial intelligence, augmented/virtual reality, and analytics.
The paper will give clear use cases on how these technologies are being used today
by financial institutions as well as the derived value both to the Financial Service
Provider as well as to the customers they are serving.
TABLE OF
CONTENTS
Cashing in on Video for
Financial Services .....................2
Biometrics: Using unique
identifiers for seamless
authentication ............................4
Artificial Intelligence: Ripe for
FSP Investment ........................4
The Very Real Benefits of
Augmented/Virtual Reality
for Financial Services .............. 7
The Massive Payoff of
Analytics for FSPs ....................8
Conclusion ................................. 10
Today’s world of financial services looks incomparable to that of 30, 20 or
even 10 years ago. We live in a world today where ATMs can automatically
detect unauthorized card users via built-in facial recognition. Where an
estimated 200,000 consumers use Bitcoin, a form of cryptocurrency, in lieu
of cash. Where algorithm-driven machines can autonomously act as
financial advisors. The financial services market has evolved to a point
where virtually anything is possible; the unthinkable is being achieved, and
the customer outcomes are seemingly endless.
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Nearly 70 percent
of millennials
now use mobile
banking, with
lenders like
Bank of America
boasting over
17 million active
mobile users.
Cashing in on Video for Financial Services
The concept of video may not be new, but the technology has rapidly sophisticated
to a point where it is today a pervasive part of everyday life. Today, we live in a
world where nearly 3 million YouTube videos are viewed per minute, and movies
can be filmed entirely on smartphones.
Naturally, video has also evolved as a transformative tool for customer service and
engagement. From Amazon’s live video support service “Mayday” to Facebook’s
video streaming feature “Facebook Live,” companies are now strategically
leveraging video to engage more deeply with followers and deliver more contextual
customer experiences.
Video has emerged as an integral tool for FSPs to flexibly grow and adapt amidst
inevitable market change. To this end, below are three chief ways FSPs can
capitalize on video to meet the next-generation needs of customers today and in
the future:
1. Mobile video service escalation: Nearly 70 percent of millennials now use
mobile banking, with lenders like Bank of America boasting over 17 million active
mobile users. Many FSPs are working to make video an essential part of the
on-line and mobile banking experience by enabling customers to seamlessly
escalate mobile service interactions to video if and when needed or desired. A
clear use case is if a customer is having difficulties determining what their
monthly payments would be on the FSP’s mortgage calculator, they could initiate
a video call with a specialist - who through co-browsing - could help the client
quickly and easily with their calculation and any other inquiry that customer
might have.
2. Video insurance claims: Video can be invaluable for documenting vehicle or
property damage to file a claim. In this way, insurance providers would enable
customers to initiate a video conference session with the touch of a button
anytime, anywhere via any device (i.e. smartphone, tablet, smartwatch). This
immediate and ubiquitous access is what will enable a driver to document
damage while standing beside his vehicle. It’s what will allow a homeowner to
share real-time video of her flooded basement from the staircase. With the use
of video, insurance providers can work to settle claims very quickly after the
incident.
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3. Video-enabled ATMS/kiosks: As the number of physical bank branches drops,
video-enabled ATMs/kiosks have emerged as an ideal solution for FSPs to
enable face-to-face communication at a fraction of the cost of traditional tellers.
Consider Bank of America: between 2013 and 2015, the number of national BoA
branches dropped by 10 percent and the company’s workforce declined by
nearly 16 percent. During that same time, the company began introducing its
new ATM with Teller Assist, touted as “next-generation banking [that] combines
the technology and convenience of an ATM with the human touch of a teller.”
In short, video is a clear way for the FSP to deliver a more personalized level of
service through their digital channels. With Avaya Oceana (our innovative multi-
touch contact center solution) and/or Avaya Breeze (our flexible Application
Development platform), FSPs can quickly and easily enable WebRTC voice and
video calls from any of their mobile and on-line applications. Complete with
co-browsing and content sharing, FSPs can ensure that client transactions can be
completed efficiently and in real-time; closely replicating the experience found in a
physical branch.
Avaya also offers a range of end points from VTMs, to kiosks to video conferencing
systems that can help FSPs extend the reach of certain specialties (such as wealth
management) in a much, more cost effective way that staffing those experts in each
and every branch location.
Image 1: Avaya Video Solutions
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Biometrics: Using unique identifiers for seamless authentication
Today’s methods of authenticating users through the contact center and through
mobile and on-line applications are a clear source of frustration for users.
According to a study by Nuance, 85% of users express frustration with existing
authentication methods (PINs, passwords, card numbers) - while 67% of mobile
users have to reset their passwords once a month.
Today, voice biometrics has been implemented by a number of FSPs in order to
offer a very quick and seamless way to authenticate clients calling into the contact
center. With the massive uptake in digital transactions, voice in addition to other
biometric solutions - in the form of palm, fingerprint, iris, vein and facial-recognition
- are also emerging in mobile applications, smartphones and ATMs.
Consider Wells Fargo who won an industry award by combining multiple biometric
characteristics (simultaneous facial and voice recognition) to enhance security.
They also offer an alternative authentication method for their mobile application
based on an eyeprint ID. In both cases the authentication process takes less than 15
seconds to complete, making the mobile service easier and faster to use.
In the United Kingdom, the Lloyds Banking Group’s subsidiary, Halifax Bank, has
started to test the use of biometrics via wearable devices. It is currently testing the
use of electronic wristbands that detect the wearer’s unique heartbeat patterns.
The wristbands work in conjunction with smartphone apps that verify the heartbeat
patterns so individuals can be granted access to their bank accounts.
Because biometric identities are next to impossible to fake, these technologies will
play a critical role in securing digital transactions and protecting the FSP as well as
their clients from fraud. Due to the importance of this technology, Avaya has been
integrating biometric technologies from leading vendors, Nuance and Verbio, into
its customer experience solutions.
Artificial Intelligence: Ripe for FSP Investment
Artificial intelligence (AI)—intelligence exhibited by machines—has gone from a
futuristic concept depicted in literature and film to a very real development that is
transforming every task, process and workflow imaginable.
According to a
study by Nuance,
85% of users
express frustration
with existing
authentication
methods (PINs,
passwords, card
numbers) - while
67% of mobile
users have to reset
their passwords
once a month.
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AI represents a new frontier for FSPs as they radically shift to meet next-generation
customer needs. At the same time, research shows that the use of robots for
financial services can reduce costs by up to 80 percent and reduce time to perform
tasks by up to 90 percent. Below are a just few ways that the industry can (and
should) uniquely capitalize on AI to reap these benefits:
1. Intelligent Chatbots: Chatbots—virtual, conversational agents—are breaking
ground as a new way for FSPs to engage with customers through instant
messaging - a customer service channel that boosts very high levels of
satisfaction (73% compared with 60% for email and 44% for phone). Chatbots
can be leveraged in web chat and SMS-based communications as well as in
hugely popular social messaging platforms such as Facebook Messenger,
Twitter, What’s app, etc.
Consider Mastercard: the company is currently piloting its new chat bot—
Mastercard KAI—on Facebook Messenger. Built on conversational AI, the bot
uses chat, messaging and other natural language interfaces to intuitively
communicate with consumers. Users can ask the bot questions about their
accounts (i.e. “Am I close to exceeding my monthly transfer limit?”), review
purchase histories (i.e. “How much did I spend on lunch today?”), and even
receive personalized offers via integration with Mastercard’s “Priceless”
experiences initiative.
2. Virtual Assistants: Today, it’s commonplace to engage with AI-enabled virtual
assistants like Apple’s Siri or Microsoft’s Cortana. In keeping with this trend,
many Financial Service Providers are also integrating Virtual Assistants into their
mobile applications. With the benefit of simple, hands free mobile banking,
customers can leverage the virtual assistant to handle multiple tasks such as
reviewing account information, transferring funds, paying bills and applying for
loans - all while on the go. In a study conducted by Nuance, the addition of a
virtual assistant to a mobile app has been shown to increase NPS scores
(measurement of a customer’s willingness to recommend a company to others)
by 33%.
ING Netherlands was one of the first banks in Europe to introduce their own
personal banking assistant called Inge- which delivers a true human
conversational experience that speaks, listens and understands in order to help
customers with their banking.
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3. Robo-advisors: These automated, digital wealth management solutions are
nothing short of revolutionary for the financial services industry. In fact, the
digital advice market is expected to be worth an estimated $500 billion by
2020. Using AI, banks can create these intelligent machines to uniquely advise
customers on everything from their various accounts (i.e. bank, trust, brokerage)
to auto and home investment to personalized savings approaches. In fact, a 2016
KPMG study found that about two-thirds of customers find these robo-advising
features attractive. The benefit to the FSP is the ability to extend wealth
management or investment services to a broader group of clients since it would
offer increased accessibility through low or no minimums and fees .
Avaya has fully embraced Artificial Intelligence and offers the ability for FSPs to
enable intelligent chatbots for SMS, webchat and social messaging platforms
(Facebook Messenger, Twitter, WeChat, Kik, etc) very quickly and easily. Over
time, as the machine learning continues to collect data, the chat bot in turn
“learns” more about the business and can become more versatile. If the chat bot
is ever challenged, a live agent can quickly and easily take over. Calls to be
escalated from chat bot to live chat to voice or video in a seamless way that
allows context to be fully preserved.
In addition to chat bots, Avaya, along with its technology partner, also has
developed Noor, a personal banking assistant that can check personal finances
in real-time, assist with banking transfers and help its customers make financing
decisions about large purchases. Noor, and assistants like it, will have the ability
to simplify customer engagements through their ability to bring the right
information, at the right time to help customers achieve what they want in simple
and personalized manner – while on the go.
Image 2: Avaya’s Virtual Assistant, Noor, helping a client with a car loan.
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The Very Real Benefits of Augmented/Virtual Reality for Financial Services
Augmented reality (AR) and virtual reality (VR)—technologies that alter or simulate
real, physical environments—have revolutionized the world and the way we live in it.
In today’s classrooms, for example, students can now go on virtual field trips across
the globe without ever having to leave their desks.
In today’s world driven by digital experience and engagement, AR and VR represent
ample opportunity for FSPs to anticipate customers’ ever-evolving needs. In fact,
Goldman Sachs believes the AR/VR market will be worth $80 billion by 2025. To
this end, the scenario below represents how FSPs might be able to implement AR
and VR to support the future of the customer experience:
1. Augmented Reality: Without question, tech-savvy millennials represent the
future of the customer experience. AR/VR technology is among the few hot
solutions that can boast awareness with this generation. Thanks to the explosion
of apps like Pokémon Go, even today’s youngest generation is familiar with
Augmented Reality – where the real world is blended with computer generated
features. Consider Westpac New Zealand who was the first FSP to release a
banking application for account management using augmented reality. It
leverages 3D imagery to portray credit and debit card balances, spend habits,
payment schedules, hotpoints® balance and the location of Westpac NZ branch
and ATM’s.
2. Virtual Reality: Goes a step further by completely immersing the user in a fully
virtual world that is separated from the real world. The gaming industry’s early
attraction to VR has created a crowd of early adopters, who could help
evangelize the adoption of VR in banking and in other industries.
As much as the millennials know about VR and gaming, research shows that they
know far less about investment and wealth management than preceding
generations. A 2016 Harris poll, for example, found that 80 percent are not
invested in the stock market, 40 percent believe they don’t have enough money
to do so, and 34 percent don’t know how.
Using VR headsets, for example, millennials can be immersed into a simulated
world where they could interact with virtual, age-progressed versions of
themselves. In fact, according to research from Stanford, consumers that are
shown a digitally-altered version of themselves - using VR technologies - at
retirement age become willing to put twice as much money into long-term
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savings accounts. VR technology is also very well suited for complex data
visualization so there are also opportunities to provide complex charts and data
in 3D to simplify information in the areas of investment banking, wealth
management and retirement planning.
Avaya believes that AR/VR technologies will gain significant traction over the next
5-10 years and could represent an interesting channel for FSPs to differentiate their
services and gain broader appeal from millennials and younger consumers. Avaya is
working with Berlin based VR specialist EXP360 to integrate VR technology directly
into its customer experience solutions.
The Massive Payoff of Analytics for FSPs
The amount of data that has been produced, consumed and shared over the last
decade is nearly insurmountable. In 2016 alone, 2.4 million Google searches, 700
million Facebook logins and 150 million emails were occurring per minute. Overall,
research shows that 2.5 quintillion bytes of data are generated each day—enough to
fill 10 million Blu-Ray discs that, when stacked, would stand four times as tall as the
Eiffel Tower.
To this end, businesses across every sector are working to rapidly analyze large
data volumes to reimagine business outcomes and CX possibilities. Big data
represents the epicenter of today’s smart, digital world; it’s the origin point of
limitless opportunity and unthinkable disruption.
We can see this clearly in financial services, where over 70 percent of financial
institutions believe that the use of analytics allows them to create a competitive
advantage. With data volumes growing at an ever-accelerating pace, below are just
two of many ways that FSPs can strategically use analytics to drive next-generation
customer experiences:
1. Intelligent routing: At this point, it goes without saying that next-generation
customers will not tolerate poor service. A 2015 study from Parature, for
instance, shows that nearly 70 percent of customers have stopped doing
business with a brand due to a poor service experience, consisting of everything
from unfriendly or unknowledgeable agents to long wait times to high transfer
rates.
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With the ability to collect, measure and share real-time and historical interaction
data across all teams, processes and customer touchpoints, banks can develop
learning algorithms that bring intelligence into the routing selection to help
eliminate these common customer frustrations. In this way, banks can expertly
match customers with the right resources based on such variables as personality,
emotion and call outcome. Supported by an analytical model, customers will
virtually never have to repeat the same information or be transferred to multiple
workers to resolve a problem.
2. Predictive self-service: Self-service has evolved over the years from a luxury to
an imperative. By honing in on data collected through self-service channels, FSPs
can proactively adjust customers’ brand journeys by effectively predicting the
success of specific outcomes. For example, historical analysis may tell a bank
that a customers’ use of its online calculator tool leads to high risk of
abandonment. As such, the bank may want to work in simplifying the tool or
having a click to call button so users can connect to a live agent as needed.
To support FSPs in converting their massive amounts data of into true actionable
insights, Avaya has developed Oceanalytics. This flexible analytics platform offers a
unified, cradle to grave view of customers across all relevant sources, providing not
only real-time information and historical trends but also predictive analytics. This
consolidated view of the entire customer journey across all channels will give
financial services companies the insights not only to drive timely more personalized
engagements, but can also assist with compliance (Know Your Customers
Regulations) & fraud detection.
Account Performance
Account 1
Account ID
100214
100215
Channel
Voice
Offered
17
1
Completed
2
0
Avg Active Time
2
0
Avg ACW
2
0
Abandoned
2
0
Conferenced
2
0
Transfers
2
0
Account 2
Account ID
100216
100217
Channel
Voice
Offered
17
1
Completed
2
0
Avg Active Time
2
0
Avg ACW
2
0
Abandoned
2
0
Conferenced
2
0
Transfers
2
0
Account 3
Account ID
100218
100219
Channel
Voice
Offered
17
1
Completed
2
0
Avg Active Time
2
0
Avg ACW
2
0
Abandoned
2
0
Conferenced
2
0
Transfers
2
0
63%
Total Voice
30%
Total Emails
7%
Total Chat
Marcel Naegelkraemer
Avaya Oceananalytics
Agent ID: 733077Station ID: 1107
Ready
John Smith (125542233)
AccountView:
DD MM YYYY HH:MM:SSDD MM YYYY HH:MM:SSUTCTimezone: 15 minsIntervals:Stats from: toSupervisor Name: Milo Miller Supervisor ID: 56665548885
Average Active Time
00:15:00Availability
100%Escalations
100%
Channels
ConsultsOffered Abandoned Not answered Conferenced
Account by Agent Counts
0
20
40
60
80
100
120
140
160
180
Account 1Account 2Account 3
Image 3: Avaya Oceanalytics
About AvayaAvaya is a leading, global provider of customer and team engagement solutions and services available in a variety of flexible on-premise and cloud deployment options. Avaya’s fabric-based networking solutions help simplify and accelerate the deployment of business critical applications and services. For more information, please visit www.avaya.com.
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© 2017 Avaya Inc. All Rights Reserved.
Avaya and the Avaya logo are trademarks of Avaya Inc. and are registered in the
United States and other countries. All other trademarks identified by ®, TM, or SM
are registered marks, trademarks, and service marks, respectively, of Avaya Inc.
Other trademarks are the property of their respective owners.
02/17 • IND7964
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Conclusion
Choosing the right customer experience platform, one that is open, agile and
integrates these innovative technologies, is critical in meeting the needs of the
smart, digitally savvy consumer- both today and tomorrow. Avaya’s Oceana
represents a true integrated multi-touch contact center solution that supports all
channels (voice, video, SMS, chat and email) with the ability to take advantage of
leading Customer Experience technologies such as Biometrics, Artificial
Intelligence, Augmented/ Virtual Reality and Powerful Analytics. Customers can
transition from channel to channel seamlessly – while agents are offered a single
view of their customers, their journeys and related context, both “in the moment”
and past.
Because Avaya Oceana is built on upon an Application Development Platform,
called Avaya Breeze, fast moving financial services organizations can create custom
applications and automate workflows quickly and easily - ensuring that they can
keep pace with evolving customer needs – and remain one step ahead of the
competition. Open API’s ensure fast and easy integration into the FSP’s back office
systems (CRM, payment systems, 3rd party analytic tools, etc) and a broad range of
reuseable snap-ins through the Avaya Snap Store ensure quick and easy
development of rich communications services.
In short, Avaya, as the leader in the Gartner Contact Center Magic Quadrant for 16
consecutive years, offers the innovative solutions to help FSPs transform their
customer experience capabilities and embrace their digital transformation
strategies.
To learn more please contact your Avaya representative or visit www.avaya.com.