Name: Subject Snapshot | Customer Experience at FinovateFall
Uploaded: 2023-10-23T11:22:20.236Z
Duration: 667.8
Description: Customer Experience: Here we discuss with our experts at FinovateFall the importance of the Customer Experience and how it will progress in the future.

FinovateFall_2023_Subject_Snapshot_CX.mp4

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ENGLISH

{{00:00:21}}
When it comes to delivering
the right customer experience,

{{00:00:23}}
financial institutions have
quite a task in front of them.

{{00:00:26}}
Consumers are expecting more and
more because they're receiving

{{00:00:29}}
personal experiences across all the
different brands that they engage

{{00:00:32}}
with, whether those are retail
brands or other technology providers.

{{00:00:36}}
Financial institutions can struggle
to provide that same level of

{{00:00:39}}
personalization, though, because
if you overdo it in the financial

{{00:00:42}}
space, it can come across as
overbearing or even slightly creepy.

{{00:00:45}}
The right balance is crucial.

{{00:00:47}}
And it's not just about
striking the right balance.

{{00:00:49}}
Being able to deliver that personalized
experience across channels, whether

{{00:00:53}}
you're on a mobile phone or on
a laptop or even in a branch.

{{00:00:55}}
is also something which adds a
degree of difficulty which you

{{00:00:58}}
don't see in other areas of life.

{{00:01:00}}
The FinTech experts who are on site
at Finovate Falls spent a lot of

{{00:01:03}}
time talking about this and other
aspects of consumer experience.

{{00:01:13}}
Yeah, so Forrester built the Financial
Services Customer Trust Index to

{{00:01:16}}
really help financial services
firms understand how to measure

{{00:01:19}}
trust and how to learn more of it.

{{00:01:21}}
Because what we were finding is that trust
was a bit squishy and very, complicated.

{{00:01:26}}
And it's, trust is hard
to earn and easy to burn.

{{00:01:30}}
What we wanted to do was to get the
data and insights to really help

{{00:01:34}}
financial services brands understand
for them what do they need to do more

{{00:01:38}}
of in terms of earning customer trust.

{{00:01:41}}
For example, dependability and empathy
tend to be some of the most strongest

{{00:01:46}}
and most important levers of trust if you
want to earn more of your customers trust.

{{00:01:50}}
A lot of firms do pretty well
on dependability, but empathy

{{00:01:53}}
is a very big weak spot.

{{00:01:55}}
In fact, empathy is the area
where most firms are failing.

{{00:02:00}}
Only just over half of consumers think
that their primary bank or insurer

{{00:02:04}}
or investment firm or credit card
issuer has actual empathy for them.

{{00:02:09}}
And there is a real opportunity
here to differentiate, particularly

{{00:02:14}}
in the current economic climate.

{{00:02:21}}
I think the most challenging aspect of
delivering a good customer experience

{{00:02:25}}
is making it so that the user doesn't
have to really learn anything.

{{00:02:28}}
The user doesn't have to
significantly change their behavior.

{{00:02:31}}
Users want to get in and out of a platform
and accomplish what they need to without

{{00:02:35}}
thinking about security, having a lot
of friction, or slowing them down.

{{00:02:38}}
And that ease of use while maintaining
the paramount of security are the

{{00:02:42}}
fundamental tenets of Arculus technology.

{{00:02:46}}
In our data, we found that customer
experience and trust are pretty much

{{00:02:51}}
flatlining in financial services.

{{00:02:53}}
For the last few years,
they have been pretty flat.

{{00:02:56}}
And part of that reason, I think,
comes from the fact that if we go back

{{00:03:01}}
to the pandemic, trust and customer
experience reached an all time high.

{{00:03:05}}
Why is that the case?

{{00:03:06}}
What happened was we were all in this
together and so firms really had an

{{00:03:10}}
empathetic approach in terms of how
they were engaging with customers

{{00:03:14}}
waiving overdraft fees extensions
on payments or letting people skip

{{00:03:18}}
a payment when times were tough.

{{00:03:20}}
But that's gone now, and we're back
to the behavior where most banks,

{{00:03:23}}
unfortunately, are just focused on
trying to sell their customer their next

{{00:03:26}}
product, instead of really helping them
with what the customer wants, which is if

{{00:03:31}}
I've got a problem, resolve it quickly.

{{00:03:32}}
Help me improve my financial situation,
understand my financial situation and my

{{00:03:37}}
needs, and help me improve my well being.

{{00:03:39}}
They're the sort of things that
really, matter, and they're the areas.

{{00:03:43}}
When most financial services
firms are failing because

{{00:03:47}}
they're over here too focused on
trying to sell the next product.

{{00:03:50}}
Now, you can do both.

{{00:03:51}}
It's not that you can't do both,
but equally what we do know is that

{{00:03:55}}
if you drive great experiences for
your customers and you earn customer

{{00:03:58}}
trust, there's an interesting
business benefit that comes from that.

{{00:04:02}}
What happens is your
customers become more loyal.

{{00:04:05}}
They become more loyal to your brand
and stickier as a result of that.

{{00:04:10}}
Your customers become
less price sensitive.

{{00:04:12}}
Now, sure, if you're not in the
game on price, they'll walk away, a

{{00:04:16}}
lot of times, but if you're in the
ballpark, and you have a customer

{{00:04:19}}
who's a fan and loyal to you, you
are more likely to win that business.

{{00:04:23}}
And what that does for your business...

{{00:04:25}}
is it can create a much more adaptive
and resilient business so that your

{{00:04:29}}
business is less price sensitive.

{{00:04:31}}
And given what's going on with the
war on deposits, that's certainly

{{00:04:34}}
what a lot of firms want right now.

{{00:04:40}}
The interesting thing with customer
experience, and again, we've been looking

{{00:04:43}}
at this for years at Forrester and
collecting data on it, is that what is

{{00:04:47}}
happening is that hybrid experiences,
customers believe they're better than

{{00:04:52}}
digital only or physical only experiences.

{{00:04:55}}
And that's interesting because at the
same time, what we have most financial

{{00:04:59}}
services firms doing is shifting away
from human interaction, like forcing

{{00:05:03}}
customers to self serve with AI and
chatbots and digital mobile banking tools.

{{00:05:08}}
And the challenge with that is that
they don't create great experiences.

{{00:05:14}}
In terms of growing customer
experience and the things that are

{{00:05:18}}
very important, firms need to do a
lot more in terms of weaving human

{{00:05:23}}
and digital experiences together.

{{00:05:25}}
Many

{{00:05:29}}
consumers, especially Gen Z, will
Use mobile as their first channel,

{{00:05:34}}
and they want access to quick
information, and oftentimes quick

{{00:05:37}}
information doesn't necessarily mean
that they are talking to a human.

{{00:05:41}}
It may mean that they're actually
searching for the self service features

{{00:05:45}}
that they want to use in a mobile
app, or learning about financial

{{00:05:48}}
education on things like YouTube.

{{00:05:50}}
So understanding where your consumers
are actually wanting to connect with you.

{{00:05:55}}
And then when you identify a point
of friction in the interaction,

{{00:05:59}}
making sure that you understand the
right channel to send them to be

{{00:06:02}}
able to resolve whatever their issue
is and do so in a timely manner.

{{00:06:09}}
I think AI is going to significantly
change the customer experience from

{{00:06:13}}
chat bots to bots that are trying to
scam You AI and generative technology

{{00:06:18}}
is going to continue to evolve and
change and users are going to experience

{{00:06:22}}
it more and more along their journey.

{{00:06:24}}
That's why it's so important to
have the paramount of security.

{{00:06:26}}
That's why it's so important to
safeguard your life with digital

{{00:06:30}}
keys, because a chatbot is going to
be asking for your password tomorrow.

{{00:06:37}}
What I would love to see is I've
seen a version of this with some

{{00:06:42}}
tech companies if 90 percent of the
questions or 95 percent of the questions

{{00:06:47}}
that people are going to ask, because
either their device doesn't work, or

{{00:06:51}}
there's some process That's broken.

{{00:06:53}}
If I can get that without having to speak
to an individual I'll do it that way.

{{00:06:59}}
And if there is a lot of learning through
where problems existed either within

{{00:07:06}}
an institution, its processes, or its
products, and that's how AI learns how to

{{00:07:11}}
give better answers, then I'm all for it.

{{00:07:14}}
But I do need a way.

{{00:07:16}}
to get past that particular set
of filters to an individual who

{{00:07:21}}
ultimately can fix the problem.

{{00:07:27}}
So much of what AI can provide is
a lot of education for our clients,

{{00:07:32}}
especially if they're small businesses.

{{00:07:33}}
People don't like going to banks when
they're small, and even when they

{{00:07:37}}
have founders, because there's a fear
around the things that they don't know.

{{00:07:41}}
And being able to leverage AI to help
people feel more confident coming into.

{{00:07:46}}
And whether it's through a portal or
whether it's actually into the branch and

{{00:07:51}}
feeling more confident around what they
need based on what they understand about

{{00:07:54}}
themselves and their business will make
a huge benefit across all clients because

{{00:08:00}}
so many clients make those decisions.

{{00:08:02}}
based on limited information and
that's where their anxiety comes.

{{00:08:10}}
So I think as quantum computing
continues to develop, it's really

{{00:08:14}}
exciting for the FinTech space.

{{00:08:16}}
It really means that we can increase
computing power, we can solve problems

{{00:08:19}}
faster for consumers and we can use
new technology to help keep them safe.

{{00:08:24}}
So I think banks and other FinTechs
and security experts around the world

{{00:08:28}}
are continuing to look at quantum
computing and all the new computing

{{00:08:31}}
developments for our consumers.

{{00:08:33}}
The most important point is that
passwords really are antiquated.

{{00:08:36}}
A password is a shared secret,
and as we all know, if we've

{{00:08:39}}
shared a secret with anyone, it
doesn't stay a secret very long.

{{00:08:42}}
In the same way we trust physical keys
to the locks on our home, we should

{{00:08:46}}
trust digital keys for our digital lives.

{{00:08:48}}
And that's where Arculus comes in.

{{00:08:50}}
Cybersecurity and password protection
has evolved significantly as

{{00:08:53}}
computing power has increased.

{{00:08:56}}
So it's becoming easier and
easier to force passwords.

{{00:08:59}}
So instead of using passwords, we
can take these digital keys and the

{{00:09:02}}
cryptographic signatures to keep our
platforms, banks, and FinTechs safe.

{{00:09:10}}
So when we talk about this to different
FinTechs and different banks, different

{{00:09:13}}
groups get excited about different things.

{{00:09:16}}
So the security people
love the security aspect.

{{00:09:18}}
They love how it's going
to help their bottom line.

{{00:09:20}}
The business people love the user journey.

{{00:09:22}}
They love that it's going
to complete more carts.

{{00:09:24}}
It's going to do more user flow.

{{00:09:25}}
And if you can get both of them in the
room at the same time, They're incredibly

{{00:09:30}}
excited about the whole solution.

{{00:09:33}}
I want to make the point that, as we
push users to use digital keys, it helps

{{00:09:37}}
both our top line, And our bottom line,
so on the top line, if we have users

{{00:09:42}}
have passwordless login, we're going
to get them into our platform, better

{{00:09:46}}
engaged, doing what we want to do on
our banking and FinTech platforms, and

{{00:09:51}}
that's a happy user, happy users are
retained, happy users use our products

{{00:09:55}}
and happy users, generate
more revenue and earnings.

{{00:10:02}}
In the FinTech space, we really need to
educate the public that passwords are

{{00:10:06}}
antiquated, and that we need to use these
digital keys to secure their platforms.

{{00:10:10}}
Importantly, we need to do it in a
way that the public will actually use.

{{00:10:14}}
So that means easy user experiences, easy
to understand, one tap, total security.

{{00:10:21}}
And by adding those to payment cards
and other platforms that our consumers

{{00:10:25}}
are used to using, we can inject it into
their normal user flows, user journeys,

{{00:10:29}}
so we don't interrupt their digital lives.

{{00:10:32}}
So I think over the next 12 months given
the high interest rates, you're going to

{{00:10:36}}
continue to see some consolidation, you're
going to continue to see some hesitancy,

{{00:10:40}}
but I think the leaders in the space will
continue with their investment thesis,

{{00:10:44}}
will continue to understand that the
user journey is paramount, and winning

{{00:10:48}}
users is going to drive revenue and drive
earnings, and those people that treat

{{00:10:52}}
their consumers best are going to succeed.

{{00:10:55}}
Stay tuned for more on the latest
developments from the FinTech

{{00:10:58}}
ecosystem and Finovate's experts
found exclusively on Streamly.

When it comes to delivering
the right customer experience,

financial institutions have
quite a task in front of them.

Consumers are expecting more and
more because they're receiving

personal experiences across all the
different brands that they engage

with, whether those are retail
brands or other technology providers.

Financial institutions can struggle
to provide that same level of

personalization, though, because
if you overdo it in the financial

space, it can come across as
overbearing or even slightly creepy.

And it's not just about
striking the right balance.

Being able to deliver that personalized
experience across channels, whether

you're on a mobile phone or on
a laptop or even in a branch.

is also something which adds a
degree of difficulty which you

The FinTech experts who are on site
at Finovate Falls spent a lot of

time talking about this and other
aspects of consumer experience.

Yeah, so Forrester built the Financial
Services Customer Trust Index to

really help financial services
firms understand how to measure

Because what we were finding is that trust
was a bit squishy and very, complicated.

And it's, trust is hard
to earn and easy to burn.

What we wanted to do was to get the
data and insights to really help

financial services brands understand
for them what do they need to do more

For example, dependability and empathy
tend to be some of the most strongest

and most important levers of trust if you
want to earn more of your customers trust.

A lot of firms do pretty well
on dependability, but empathy

In fact, empathy is the area
where most firms are failing.

Only just over half of consumers think
that their primary bank or insurer

or investment firm or credit card
issuer has actual empathy for them.

And there is a real opportunity
here to differentiate, particularly

I think the most challenging aspect of
delivering a good customer experience

is making it so that the user doesn't
have to really learn anything.

The user doesn't have to
significantly change their behavior.

Users want to get in and out of a platform
and accomplish what they need to without

thinking about security, having a lot
of friction, or slowing them down.

And that ease of use while maintaining
the paramount of security are the

fundamental tenets of Arculus technology.

In our data, we found that customer
experience and trust are pretty much

For the last few years,
they have been pretty flat.

And part of that reason, I think,
comes from the fact that if we go back

to the pandemic, trust and customer
experience reached an all time high.

What happened was we were all in this
together and so firms really had an

empathetic approach in terms of how
they were engaging with customers

waiving overdraft fees extensions
on payments or letting people skip

But that's gone now, and we're back
to the behavior where most banks,

unfortunately, are just focused on
trying to sell their customer their next

product, instead of really helping them
with what the customer wants, which is if

Help me improve my financial situation,
understand my financial situation and my

needs, and help me improve my well being.

They're the sort of things that
really, matter, and they're the areas.

When most financial services
firms are failing because

they're over here too focused on
trying to sell the next product.

It's not that you can't do both,
but equally what we do know is that

if you drive great experiences for
your customers and you earn customer

trust, there's an interesting
business benefit that comes from that.

What happens is your
customers become more loyal.

They become more loyal to your brand
and stickier as a result of that.

Your customers become
less price sensitive.

Now, sure, if you're not in the
game on price, they'll walk away, a

lot of times, but if you're in the
ballpark, and you have a customer

who's a fan and loyal to you, you
are more likely to win that business.

is it can create a much more adaptive
and resilient business so that your

And given what's going on with the
war on deposits, that's certainly

The interesting thing with customer
experience, and again, we've been looking

at this for years at Forrester and
collecting data on it, is that what is

happening is that hybrid experiences,
customers believe they're better than

digital only or physical only experiences.

And that's interesting because at the
same time, what we have most financial

services firms doing is shifting away
from human interaction, like forcing

customers to self serve with AI and
chatbots and digital mobile banking tools.

And the challenge with that is that
they don't create great experiences.

In terms of growing customer
experience and the things that are

very important, firms need to do a
lot more in terms of weaving human

consumers, especially Gen Z, will
Use mobile as their first channel,

and they want access to quick
information, and oftentimes quick

information doesn't necessarily mean
that they are talking to a human.

It may mean that they're actually
searching for the self service features

that they want to use in a mobile
app, or learning about financial

So understanding where your consumers
are actually wanting to connect with you.

And then when you identify a point
of friction in the interaction,

making sure that you understand the
right channel to send them to be

able to resolve whatever their issue
is and do so in a timely manner.

I think AI is going to significantly
change the customer experience from

chat bots to bots that are trying to
scam You AI and generative technology

is going to continue to evolve and
change and users are going to experience

FinovateFall

Expert Insight

Customer Experience: Here we discuss with our experts at FinovateFall the importance of the Customer Experience and how it will progress in the future.