Banking is an industry ripe for disruption, with the recent emergence of fintech startups as a sign of this trend. These newcomers are aggressively challenging traditional banks and financial institutions, especially with the way they are providing customer support, making old processes more efficient, and improving the customer journey and experience with innovative mobile technology and new services.
Financial organizations and banks have had their share of disruptive technology in recent years as innovative, digital-only fintech companies have made inroads in their traditional markets despite high barriers to entry. Neobanks and online financial services startups now number more than 5000 worldwide as their ranks grow and investors heavily bet on Global Fintech. As of Q2 2018, $46 billion have been invested in more than 380 deals worldwide, with the notable mammoth $14bn investment in Ant Financial, the payments affiliate of China’s Alibaba Group.
At Clustaar, we see 3 powerful patterns at play which will influence where Fintech companies will go.
- Customer requests are very similar: be it in support situations or sales environments, customers often ask the same questions over and over. This pattern is obvious by simply typing a query in Google: the suggest feature will propose similar queries typed by people before you. (Side note: at Clustaar we’ve been analyzing search queries for years and are familiar with recurring questions.) With the pareto effect in play, it is possible to automate answers to a minority of simple requests that make up the bulk of the volume. A simple example is password resetting or trouble in connecting to wifi which in many cases are the most often asked question. At least 75% of Clustaar’s clients are in that situation.
- Instant 24/7 service is – almost – the new normal: If 24/7 service is a growing desire among consumers, it is even more so a with tech-savy users in mobile-first contexts which where most fintech and neobank companies operate. People carry their smartphones with them all day long and access their mobile apps at anytime. Fintech companies have well understood this and have designed their services based in a 24/7 customer engagement framework. To achieve this without some sort of automation is hardly possible. Unless a brand can afford massive call centers to provide 24/7 sales or support lines, and pay the price for it, it will at some point seriously consider chatbots and conversational AI. Customers have become fond of mobile messaging and livechat interfaces, and this is how they want to interact with brands. Anywhere, anytime.
- Automation is a powerful cost saving proposition: As a Clustaar client said, “Last year we spent 5 months on the phone answering customer support requests”. According to a report released by Juniper, chatbots will be responsible for over $8 billion annual cost savings by 2022, especially at the support operation level. More precisely, we have found that companies can cut support ticket processing time by 2 to 3 by simply implementing a chatbot scenario that will prequalify customer requests which, once completed, funnels the requests to human agents. Chatbot technology and conversational AI are already starting to deliver on scaling operations, especially in customer support situations. As many existing and prospective clients have told us, “customer support is the only part of the business that doesn’t scale.” Chatbot can scale these operations by focusing on simple level 1 requests, cut costs and deliver a better user experience at the same time.
Along with these patterns, we have observed the customer acquisition process becoming more fine-tuned than ever. Customer acquisition is the life force to a businesses operation and isn’t easy. Fintech has the ability to bring qualified leads to your doorstep, curious and fully interested in your services. Chatbots collect data on user behavior which in turn helps you to hone in on your target audience and generate future leads.
Implementing AI to qualify leads saves company time and resources while converting leads into revenue. Paul Firkins, the development Director at Hood Group advocates the chatbot/
“AI and data developments help improve efficiency, such as automating pricing processes and reducing admin tasks. Our teams are trusting data and innovation experiments to make decisions and recommendations where they might have previously relied on the knowledge of a specific individual or process.”
Along with qualifying
Lydia made the move to introduce chatbots to help guide new customers.
Lydia the aforementioned mobile payment and card payment app offers a digital wallet to pay friends or transfer money instantly across bank accounts. Lydia chose to automate their support to sustain growth in without physically expanding their support team. Lydia was drawn to Clustaar’s user-friendly interface for an easy transition for their team.
After integrating with the Clustaar chatbot platform, 100% of queries go through the chatbot prior to getting in touch with a human, if necessary. This process has reduced the time spent by an agent to problem solve by 65%. In July Lydia reported 1 ticket per 60 users. They have since seen a return after support automation, with a reported 1 ticket per 65 users in September.
Financial models like Lydia can benefit from having various use cases for their new operational processes and revenue models. They have the advantage of being a disruptive technology company, to easily adapt and have chatbots with artificial intelligence and support various technology platforms and integrate with existing applications to deliver a seamless experience.
Using chatbots and artificial intelligence allow
Clustaar knows how to provide user-friendly and efficient build chatbots that integrate with numerous platforms like In-app solutions, Facebook Messenger, Zendesk, Intercom, Webchat, Google Home and others. The bots are easy to set-up and even easier to maintain. Try it for yourself, or you can just request a personal demo from our team!