deepening the banking customer relationship …€¦ · commerce deploys cognitive capabilities,...
TRANSCRIPT
DEEPENING THE BANKING CUSTOMER RELATIONSHIP THROUGH VOICE COMMERCE
2Digital Banking2
Digital assistants are powering always-on ways for banks to engage with customers through contextual - services, positively influencing customer lifetime value.
Digital Banking 3
Digital Banking and
Evolution of Voice Commerce
Conversational Commerce is fast emerging as one of the most important banking
applications using IOT. While previously restricted to chatbots accessed via messaging
expectationsOpen Banking
Hybrid Cloud
Open Unified Digital Banking SolutionsMobile Imaging for Bank Customers
Biometric Mobile Banking Authentication
Open-Source Banking Systems
Advanced Analytics
Wearable Banking Apps
Mobile Imaging for Bank StaffBlockchain/Distributed Ledgers
Digital Personal Financial Advisor Public Cloud for Core Banking
Geolocation Products and ServicesOpen Bank Systems
Digital Payment Advisor Lot for Banking
Business Ecosystem Modeling
Programmable Business Model for Banking
Smart Contracts
Public Cloud Logical Data WarehouseRemote Commerce Emulation Payment Systems In-Branch and ATM VideoCloud-Driven Business and IT Services
Social Messaging App Wallet
Tablet Apps Digital Wallets
BIAN StandardsIntelligent Bank Operations
Private Cloud Computing Mobile-Originated Proximity Payment Systems
Near -Real-Time Low-Value Payment Systems
Mobile-Originated P2P Payment Solutions (for Mature Payment Markets)
Smartphone Banking
Mobile Wireless Payment Sysems (for Nonmature Payment Markets)
Innovation Trigger
Peak of Inflated
Expectations
Trough ofDisillusionment
Slope of EnlightenmentPlateau of
Productivity
Plateau will be reached in:
Time
Digital Wallet Consumer Hub
Less than 2 years 2 to 5 Years 5 to 10 Years
More than 10 years
Obsolete before plateau
The Internet of Things (IoT) is steadily becoming embedded in all our lives. Individuals,
businesses and financial institutions are all users of this new technology and are looking
for ways to exploit it. The technology is still at a nascent stage of development (View Gartner
Banking Hype Cycle) below but has the potential to enable banks function as the alter
ego of their customers, maximize financial well-being and seamlessly meet banking
and payment needs.
Digital Banking4
Source: Gartner's Banking Hype cycle, from Hype Cycle for Open Banking, 2018
Digital Banking 5
Gartner predicts that by 2020, 30 per cent of web browsing sessions will be done 2without a screen.
Voice-enabled assistants are the newest ‘must-have’ technology among banking consumers,
with Google, Amazon, Apple, and other giants rolling out Artificial Intelligence-infused
gears, functioning primarily through conversational voice interfaces. Globally, the number
of customers using voice-assistants is increasing with a compounded annual growth 1
rate of 29.4 per cent and is estimated to reach 1.83 Billion by 2021. Alexa, Siri, and
Google Assistant have all become an integral part of a millennial’s day. From setting
up reminders, checking the weather, to shopping – these voice-enabled digital
assistants have covered most of the bases of everyday life, heavily influencing the
mobile-tech experience customer's connected.
apps for shopping, the definition of Conversational Commerce has significantly expanded
with the arrival of voice-based personal assistants.
Increasingly, banks are interacting with customers through “full-service automated voice
assistants” (chatbots) Capital One has been a pioneer in adopting voice in the financial
services sector. It has launched an Amazon Alexa Skill to allow consumers to access
their account information and even pay their credit card bill simple by using voice
commands. A large insurance provider in Europe has also implemented a voice assistant
to help its customers 24/7 on all its channels (telephone, apps, chat among others). The
voice assistant uses colloquial language to converse with users and provides them with
fast, accurate and personalized answers in addition to anticipating their needs. This not
only enhances customer experience but also improves operational efficiency for the customer
service representatives by allowing them to focus on more value-added requests and
pre-qualify some of their customers’ demands through an exchange already made in
advance by the voice assistant.
Mastercard research has found that 87 per cent of US consumers are aware of voice and
text agents and 66 per cent have used them in the past, while in the EU, the figures
indicate one in five consumers active in this area (21 per cent shop, 16 per cent make
payments and 7 per cent have banked). Similarly research from Capgemini has found there
is significant interest in using voice assistance for purchases across most product and
services categories with interest levels high for ordering meals (56 per cent); electronics
(52 per cent); groceries or personal care items (45 per cent each) and banking 4(44 per cent).
Although voice commerce is still a nascent opportunity, it already has a powerful
influence on consumer behaviour. Eighty-five per cent of Amazon customers select the
recommended Amazon product when voice shopping – especially in popular categories 3
such as electronics, groceries and home goods. Since Amazon is already a reliable source
for reviews and suggested product information, consumers are more likely to trust these
"recommended" products as a good fit for them.
A Sound Influence on
Customer Engagement
Digital Banking6
Strengthened user engagement implies more loyal customers, which ultimately translates
into an improvement in the topline. Per se, launching a new channel does not imply a
stronger bond with the customer. The ability to deliver excellent and customer-centric
services where and when they want is the first logical step in customer engagement. Voice
Commerce deploys cognitive capabilities, speech analytics and Big Data to build interactive,
intelligent rewarding and trusted interactions with customers.
Principles of Engagement
Conversational Commerce is about enabling a more natural conversation between the
bank and its customers. Even though customers know it’s a bot, the conversation replicates
the natural flow, cadence, inflection and the timing of human interactions, so customers
feel comfortable exchanging information with the bot. A persistent flow of information
coupled with the voice bot’s built-in cognitive capabilities, helps banks ascertain customer
transaction patterns and deliver services tailored to user needs and preferences.
Voice Commerce Engagement Features
INTELLIGENT
TRUSTWORTHYCONVENIENT
INTERACTIVE
Digital Banking 7
The dynamics of a good customer engagement also has a basis on how well the banks
know their customers and the ability to earn customer trust. The conversations between the
customer and the chatbot builds a unique transactional imprint of the user that is not easily
replicated by competition. Every time the user issues a voice command, the system records
impressions of the customer’s, sentiment, intent and transactional imprint, which coupled
with account information can be used to forge deeper relationships with customers. Over
time customers can model service demand patterns to anticipate customer intent in
order to make recommendations and properly complete tasks.
Further, banks not only need to know the customer but also recognize the customer across
channels. Voice Commerce services need to be integrated with other banking services to
offer a uniform and consistent service experience. Customers could start with a voice assistant,
pick up where they left off on their mobile or finish the process by calling the contact
centre— with all their progress and information seamlessly transferred along the way.
Rewarding customers for their potential business has a positive influence on the customer
adoption and use of voice commerce. The offers could include waived fees for a certain
number of transactions or an optimally enhanced level of rewards for a specific action for
a limited duration. When banks are perceived as more relevant, it builds consumer trust.
Voice Commerce has the potential to build a diversity of relationships beyond transactional
banking. A secure and trusted flow of customer interactions will help drive usage. Customers
are likely to use Voice Commerce if their personally identifiable information are in good hands.
Access to banking service and full-time service engagement over Voice Commerce
requires banks to ensure adequate security and transparency regarding the collection
and utilization of customer data. A multi-layered approach to security including
voice-based Biometrics, data encryption and multi-factor authentication will be key to
winning customers.
Digital Banking8
Voice Commerce has the potential to build a diversity of relationships beyond transactional banking. A secure and trusted flow of customer interactions will help drive usage. Customers are likely to use Voice Commerce if their money and personally identifiable information are in good hands.
Digital Banking 9
Enhanced Customer
Engagement
A financial services digital companion to a customer acts as an extended presence of
the bank, providing customers with access to banking and payment services. Banks would
adopt a calibrated approach to services rollout – beginning from basic transactions to
engage customers via a new channel to more complex interactions that anticipate and
predict customer behaviour.
Human in the Loop - A Near-Term Use Case
But through the use of technology, fintech businesses and banks can move to a world
where such issues are a thing of the past. Artificial Intelligence and Natural Language
These frustrations could also lead to issues being magnified more than needed. For
example, a bank was in the headlines last summer for hold times of several hours for
its customers querying delays to their credit card statements. This led to consumers
venting their anger on social media and those publications covering the story. If these
phone calls were dealt with swiftly and effectively, the bank would have been able to
reassure their customers in a timely manner, and the problem would not have been
unnecessarily amplified.
When consumers contact their service provider or retailer it is often because they have
an urgent matter to resolve, particularly when they call their bank. However, people are
often faced with lengthy hold times, and a frustrating series of questions before they are
even able to speak to an agent. This only increases the customer's sense of frustration.
Digital Banking10
Machine Learning (ML) can transform the fabric of voice-driven customer experience
through speech recognition technology. Voice-driven customer service can complement
staff and improve customer satisfaction. We're now at a stage where the technology
can understand speaking habits, conversational linguistics, dialects, idiosyncrasies, slang,
foreign nationals' accents, intonation, emphasis, intention and enunciation. It can even
understand sentiment and recognizes intent.This means that the technology can be
deployed in several ways to ensure that customer issues are dealt with quickly and effectively.
From Assistants to Advisors
Voice Commerce will transform from playing an assistive role to playing an advisory role.
On smartphones as well as in homes and cars, general purpose chatbots will increasingly
have the ability to understand an individual's situation in order to make recommendations
and properly complete tasks. That means they will gain expertise and deep domain
knowledge in specific fields, like finance and planning, health and wellness, travel and
hospitality, shopping and entertainment.
Digital Banking 11
Digital Banking12
Bank of America, an American multinational investment bank and financial
services company based in Charlotte has developed their voice bot called Erica.
Erica drills deep into customer data to pre-empt their needs and suggest
solutions. It's voice and chat driven to manage the customers' money. Built by a
team of 100 people, Erica is unlike other chatbots that answer simple questions.
It pre-empts a customer's needs to offer relevant advice. For instance, it analyses
customers' withdrawal history to gauge their spending patterns and inform them
if they're running on low balance. It even suggests solutions like transferring 5
funds or sends notifications about where they can save money.
TD Bank is a U.S. national bank and subsidiary of the Canadian multinational
Toronto-Dominion Bank, TD Bank's online brokerage arm, TD Ameritrade, offers
an Alexa skill which provides quotes for all U.S.-traded stocks, ETFs, mutual funds,
and major U.S. indices–75,000 securities. The skill is open to everyone. “Just ask
for a quote by security name or symbol or ask for a market update. And, stay
tuned—we'll let you know as we add support for more requests about the market 6and your account,” the skill description reads.
Liberty Mutual Group, is an American diversified global insurer, and the fourth-
largest property and casualty insurer in the United States, Liberty Mutual's Alexa
skill allows you to obtain an auto insurance estimate by interacting with the Liberty
Mutual Guestimator tool, as well as to receive advice on common seasonal home 7and auto worries with access to Liberty Mutual's online resource.
Field Proven Use Cases
Voice Commerce will transform from playing an assistive role to playing an advisory role. On smartphones as well as in homes and cars, general purpose chatbots will increasingly add the ability to understand an individual's situation in order to make recommendations and properly complete tasks. That means they will gain expertise and deep domain knowledge in specific fields, like finance and planning, health and wellness, travel and hospitality, shopping and entertainment.
Digital Banking 13
Banks need to enable customer’s natural migration towards digital transactions. They
also need to create opportunities through sales and customer service touch points to
route customers back into a conversation with a staff member whenever they need
and want it. Staff members must be fully empowered by technology and data to offer
the best advice at the right time. For employees, banks need to use technology to empower
them to do what people do best: be empathetic, solve problems and provide the human
interaction that the majority of customers still want from their bank. In this model, banks
remove the tedious and administrative tasks from employees by using technology to
amplify what is truly differentiating about personal interactions and, in the process,
make their jobs more productive and more meaningful.
Opti-channel experience is optimizing the channel of communication to fit the context
of the interaction and ensuring a smooth handover. Without the capability to offer Opti-
Channel interaction, the real opportunity of Conversational Commerce cannot be realized.
It can be as simple as an AI-powered chatbot automatically connecting a consumer to a
human representative for final confirmation of the purchase of a big-ticket item. It can also be
complex, like when starting a shopping query on a voice assistant, browsing options on
a screen, engaging with a chatbot for more details, and finishing off with an email to
confirm payment.
A smooth handover between channels of communication, an “opti-channel” experience, is
vital. Today’s Voice Commerce revolves around the emerging use of chatbots and voice
assistants, which combined with other technologies, does offer that experience.
Voice Commerce and
Opti-channel Experiences
Digital Banking14
Voice Commerce in Banking -
The Opportunity
Enable Convenient Banking Services
Leverage Customer Insights
Boost Loyalty Through Digital Channels
With the help of voice technology, consumers can easily ask for account balances,
request an analysis of their financial health, and inquire about their investment portfolio.
With the fintech industry leveraging Artificial Intelligence, machine learning and natural
language processing, voice applications can gather key customer insights to personalize
and improve offerings.
Financial service providers can increase customer loyalty through voice applications
that help to improve customer short-term and long-term financial wellness.
Digital Banking 15
Use of AI and the enrichment of the data bank will enhance the conversations further,
where Voice Commerce can predict and advice the customers extensively.
Existing Use Cases
Retail Banking Use Cases
Wealth Management Use Cases
Banks and financial institutions can use voice technology to provide individuals with
customized, personalized banking experiences to improve their financial health
and better manage their personal finances.
Empower consumers with easily accessible insights into their investments
with data-driven personalization.
Digital Banking16
Ask for bank account balances, pending payments, Merchant
Payments, Bill Payments or deposits
Request analysis of current financial health and leverage
transaction data for predictive insights to increase savings
Ask about transaction history and how to reallocate extra budget
Obtain information on category-focused spending and expenses
Make donations and transfer funds
Schedule payments and automate Payments
Recharge wallets and make credit card payments
Customers can set limits on their credit card or debit card accounts
Enquire about their investment portfolio and how to optimize
returns
Ask for stock updates and receive email or text alerts when a
stock reaches a certain price
In the USA, consumers can receive updates on their 401(k) and
find out how to rollover assets
Obtain market and stock performance data
Users can:
Users can:
Payments Use Cases
Lending Use Cases
Voice applications for payments offer an opportunity for financial service providers to
differentiate and deliver personalized banking services.
Offering services through Alexa Skills or Google Assistant Actions can open new
doors for lenders and help to streamline the process.
Ask about the latest interest rates on mortgage loans and
explore refinancing options
Obtain information on small business loans and how to get
access to working capital
Ask about personal loans for major expenses or debt consolidation
Digital Banking 17
Schedule and make payments to providers and credit cards
Transfer money between accounts or deposit money
Send money to friends or family using payment applications
like FSS mPay or any other banks application or a third-party
integrator like Zelle
Ask about transaction history dashboard with information on
future or outstanding bills
$
$
$ $
$
$
Users can:
Users can:
Digital Banking18
Banks and financial institutions can use voice technology to build an ongoing dialogue
with customers as unique individuals, deliver personalized payments as well as banking
products to improve their financial health and better manage their personal finances.
Most bots today, however, have limited capabilities and there is no instant cookie-cutter
model to a successful Voice Commerce deployment. The successful adoption of Voice
Commerce would depend upon:
Strategies for Driving Voice
Commerce Success
Factoring gestation period for training the bot
The promise of ultimate convenience from voice bots depends on an understanding
a consumer’s intent. As usage of Artificial Intelligence based advisors for commerce
(and more) increases, the data pool and contextual capability is also enriched. Time
however needs to be taken in building the voice-banking function, considering both
how consumers would request a particular action, and the appropriate responses by
the Voice Commerce system.
Digital Banking 19
Embracing Voice Commerce + Digital Banking strategy
With the advance of new devices and intelligent end points, a bank and brand’s
connection with consumers becomes much more varied and complicated. Rather
than deploy Voice Commerce as a standalone channel, it needs to be integral to the
bank’s overall digital strategy. They’ll also need to integrate with existent digital
banking platforms, CRMs, and contact centres for orchestration of consistent and
seamless cross-channel services experiences, without customers having to repeat
information, as the backend system maintains a record of the interaction history.
Assuring security of transactions
Banks need to operate within rules that can help them maintain customer trust and
data security. As payment and banking transactions move to the voice channel and as
With new technology like voice banking, it's easy to overlook the work required by
consumers particularly at the outset, when they are easily distracted by the novelty of
the channel. Banks need to adopt a calibrated approach to services adoption. Start simple,
with a narrow set of services, expand from there, and be ready to learn. The initial focus
could be on introducing primary and easier functions (like balance enquiry). As customers
become more familiar with voice as a commerce channel, new services can be layered,
and the transactional portfolio can evolve to offer a range of products and services.
Adopting a listen and learn approach to technology
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Embracing design thinking
Reducing human intervention to critical moments and drawing on artificial intelligence
for the bulk of interactions is crucial to success. An understanding of customer journeys,
recognizing the customer intent and identifying the transactions that can be automated
and which inquiries to hand over to human support staff at the right time will be a crucial
success determinant.
Customizing digital assistant personality
Customers are excited to interact with a digital assistant that has a real-human personality
and can understand customer sentiments and respond appropriately. Banks need to
design the digital assistant in a way it can answer customers empathetically, with a
voice consistent with its overall brand values
Defining business objectives clearly
Basis business objectives - building brand differentiation, improving resolution time,
successful automation or CSAT, it’s necessary to establish related metrics that are
important and monitor them regularly.
banks provide access to third-party services over the voice channel, banks need to
ensure security measures are current, aligned and robust enough to safeguard against
fraud and other risks. Behavioural biometrics, multi-factor authentication, tokenization
of sensitive personal credentials would be critical for user authentication.
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There is an obvious competitive advantage that banks derive for enhancing their customer
experience Banks and financial institutions can use voice technology to improve revenues
per customer, lower costs and optimise engagement.
Benefits of Voice Commerce
COST
REDUCTION
Reduce costs for
customer support
and research /
surveys
CUSTOMER
SATISFACTION
Improve the overall
customer experience
by providing easily
accessible and " real-
time" information to
personalise services
DRIVE
INCREMENTAL
SPEND
Capturing
"spontaneous" or
"distressed " purchases
or providing inspiration
e.g., providing cashbacks to
encourage additional spend
CUSTOMER
LOCK-IN
Through improving
customer experience
and collecting customer
data to enrich CRM
Digital Banking22
For banks, the best voice commerce functionality includes:
Multi-pronged NLP Engine: Enables natural language processing and precise
intent identification for multi-level dialogue with consumers
Speed to Market: A bot builder framework enables the bank to extend and
customize bots and build new bots to meet their conversational banking objectives
Bot Builder Framework: Enables the bank to extend and customize bots and
build new bots to meet their tactical and strategic Conversational Banking objectives.
Open and Extensible: API Layer for integration with bank internal as well as third
party systems to construct truly differentiated user experiences and offerings
Dashboard and Analytics: Leverage structured and unstructured data and get
insights to drive deeper engagement, conversion, and share of wallet. The goal
of these processes is to refine bot performance and continually learning about
customer preferences
Support for Human Native Interfaces: Deploy AI agents that power voice,
conversational experiences in addition to traditional web and mobile applications.
Built for Banking: Enterprise-grade and purpose-built for banking
Security: Comprehensive security framework to protect data an rest and in transit
and win customer trust
Flexible Deployment Options: On premise, private cloud, public cloud, or a
hybrid.AI and ML
As banks start to build and integrate these solutions, it is key that they start small
and take an iterative, test and learn approach to implement a successful voice
commerce strategy. FSS can help banks roll out Voice Commerce strategies and
integrate them with existent bank channels
FSS can help banks roll out Voice Commerce strategies and integrate them with
existent bank channels
Digital Banking 23
We are a social species and the spoken word is the most natural and basic way we
interact with each other. It's the clear evolutionary next step for Conversational
Commerce, but it's a step that's proving slow and difficult to take. Artificial Intelligence
and Natural Language Processing are making our tools more powerful, but it is the
implementation that will make or break voice as a channel. Voice holds a great deal
of potential if we can bring consumers on the journey. The technology is here and the
payments networks that enable it are already in place.
Rather than replacing sales channels, voice commerce can be integrated into online
retail, apps, and other services. Smaller retailers should pay close attention to voice
commerce and the significant resources invested by some of the world's major retailers,
threatening those retailers who fail to adapt.
While it may be a few years before voice activated assistants can talk to us like real
humans, there is valuable groundwork to lay today to ensure adoption doesn't stagnate
and that consumers are encouraged to adopt voice services. Only by establishing trust
today can we unlock the future promise of voice driven Conversational Commerce
and create better conversations between brands and their customers.
We also need to work on defining the playing field for our partner ecosystems and
establishing the rules of engagement and regulations that support our services. These are
big conversations, and no one has all the answers today. It's about asking the difficult
questions, experimenting and seeking answers from outside your own organization.
Outlook for Voice Commerce
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1. The digital assistants of
tomorrow- Juniper Research
2. Conversational Commerce:
Why Consumers Are Embracing
Voice Assistants in Their Lives-
Capgeminihttps://gomedici.co
m/rise-of-voice-payments-
ecosystem/
3. https://thenextscoop.com/c
ustomer-engagement/
4. Conversational Commerce:
Why Consumers Are
Embracing Voice Assistants
in Their Lives-Capgemini.
5. https://bankinnovation.net/2
017/03/7-financial-services-
skills-alexa-has-that-you-didnt-
know-about/
6. https://bankinnovation.net/2
017/03/7-financial-services-
skills-alexa-has-that-you-didnt-
know-about/
References
Digital Banking 25
7. https://bankinnovation.net/2
017/03/7-financial-services-
skills-alexa-has-that-you-didnt-
know-about/
8. https://fitsmallbusiness.c
om/customer-engagement-
strategies-and-tips/
9. https://fitsmallbusiness.co
m/customer-engagement-
strategies-and-tips/
10. Gartner Banking Hype Cycle
11. Accenture-Research-Conver
sational-AI-Platforms https://bank
innovation.net/2017/03/7-financial-
services-skills-alexa-has-that-you-
didnt-know-about/
13. Accenture-Voice-Assistant-Infographic
14. dti-conversational-commerce
15. https://www.iflexion.com/blo
g/voice-commerce.
16. https://friendlydata.io/blog/
nlp-in-finance
17. Voice Search Will
Eventually Revolutionize
Search Marketing, Sept. 2017
12. https://bankinnovation.net/
2017/03/7-finanacial-serv
About FSS
Contributors: Ruchika Mathur, Asst. Marketing ManagerReviewers: Shikha Bhatia, Marketer Software Products, Benedict Xavier Head, Digital Banking Business