Self-Service or Human Assistance? Finding the Digital Banking Middle Ground.
There’s no doubt about it: online banking is on the rise. For banks, the question is no longer, “Is digital banking needed?” Rather, banks are asking how they can continue to connect with and provide for their customers if and when bank branches disappear altogether. We’re not talking about dystopian hypotheticals here. It’s already happening as we speak!
- IDC reported that digital banking customer bases grew 3x faster than that of traditional banking between 2019 and 2020.
- Growing at a Compound Annual Growth Rate of 15.7%, the global market for digital banking is expected to nearly triple from US$12.1 billion in 2020 to US$30.1 billion by 2026.
- Zooming in on APAC, license allocations and regulations are proliferating in the region. IDC foresees an average of two digital banks launching per market by 2025! No other region is better primed for growth.
While fewer people are visiting physical bank branches, it doesn’t mean that banks can do away with the human element altogether. Digital banking tools and self-service options are not perfect replacements for good customer support, which still remains integral to every individual’s banking experience. Customers still want (and need) the option to talk to a bank representative face-to-face—or at least, face-to-screen.
Finding the right balance between digital and human banking support
Having dealt with social restrictions for years, customers crave human social encounters more than ever before—whether it’s via physical or assisted channels. This is especially so for high value financial transactions, such as applying for large loans, purchasing a home, or starting a business. Rather than going through impersonal switchboard menus, customers want to cut to the chase. They’re asking, “Can I just speak to someone?” This places the onus on banks to find the right balance between the digital touch and the human touch.
In the same vein, banks must not forget the large segments of society, such as the elderly and disabled, who are unwilling or unable to use new technology. These customers need more education and assistance, so that they too can enjoy the benefits of online banking.
Simply put, banks have to figure out how to make those services that were traditionally available at physical branches now available across all their online channels. And they need to ensure that those digital services are backed by human support. Sounds difficult? It doesn’t need to be with communication APIs.
How communication APIs make banking support better
Communication APIs make it easy for banks to find the balance between human assistance, self-service, and proactive response. Additionally, it helps to deploy internal resources in the most efficient and effective manner. Unfortunately, most banks are only excelling in one out of three areas. If you guessed "self-service options," you’re right. That wouldn’t be a problem if customers are self-sufficient, but that isn’t the case when the majority of banking questions are too complex to be addressed with an automated answer.
For the bank of the future to be successful, it must be able to offer human assistance, have conversations within context, be available when and where customers are, and allow customers to move freely between different channels—video, chat apps, SMS, email. This is possible with communication APIs.
Live support with the click of a link is probably the most underutilized online banking feature. With video interaction and screen sharing, you can build trust face-to-face, solve customers' problems, and guide them through jargon-laden documents on-screen, so that you’re seeing the same thing no matter where you are physically located. Such interactions can be scaled up for larger meetings with 8x8 Jitsi, which allows you to customise settings accordingly for internal and external meetings. Both video solutions are completely web-based and designed for mobiles, which means that your customers don’t have the hassle of downloads. Once they click on your link, you’re connected.
Not to be underestimated, SMS messaging continues to be one of the most trusted and secure communication channels, especially when combined with 2FA alerts and notifications. On top of being a low-cost, high delivery channel with a 98% open-rate, SMS 2FA also guards against automated bots, bulk phishing, and cyber targeting.
Voice messaging is also growing in popularity as it helps create stronger human connections and makes online transactions more accessible to individuals with low literacy levels, disabilities, or even just people on the go. More than just an accessory feature, voice messaging also offers better delivery rates as voice messages can be heard without internet connectivity, making it an ideal back up plan for time-sensitive information. The icing on the cake: you won’t be restricted by call length limits.
Couple these human-centric tech features with 8x8 Connect, a multi-channel communication platform, and you have the ability to ease internal workflows and see your customer experience skyrocket.
The cybersecurity challenge for banks
Everyone knows that the financial services sector is one of the most targeted sectors for cyber attacks. Adding digital banking to the mix only magnifies the risk as the need for speed is often prioritized at the expense of cyber security. As the banking sector evolves rapidly, some banks are deploying more and more resources to monitor customer data and maintain visibility across an ever-expanding online network.
That’s why 8x8 Communication APIs were designed with security at the forefront; they conform to stringent specifications for securing financial information, customer privacy, and computer networks. In fact, no competitor has achieved the same level of advanced, third-party verified security and compliance certifications.
Banks can be assured of security at every step as 8x8’s cloud-based communication solutions are delivered from mirrored, top-tier, secure, fully redundant, and geographically diverse state-of-the-art data centers that are "Statement on Standards for Attestation Engagements (SSAE) 16" audited.
Humans and technology in tandem
People still remain at the center of banking, and at its core, customer support has not changed. Banking customers expect the same level of support in the digital world as they do at physical branches. Communication APIs enable banks to meet this challenge and maintain a high standard of customer experience through digital channels.
In addition, the bank of the future needs an omnichannel communication strategy that facilitates human assistance for the less digitally-savvy, so that wider sections of the community can be accommodated. By using communication APIs, your bank will be able to really embrace a customer-first approach. Pull this off, and your bank will arrive at the middle ground, where better customer experience, greater customer satisfaction, and the potential for greater loyalty and retention are alive and well.
Contact us at hello-cpaas@8x8.com to learn how communication APIs can make digital banking more available, more inclusive, and more human.