REINVENTING CUSTOMER EXPERIENCES

Make banking more personal with AI

Introduction Today’s presenters

Is AI a disruptor in the banking industry ?

Disrupting the banking industry

Banking industry challenges

The payment

landscape is rapidly

changing ;

Banks have to define

their role and work

with strategic

partners

Changing

customer needs

New

technologies

Increasing

regulations

New

entrants

OEM Pay

Instant Payments

Fintechs

International competition

PSD2 GDPR

Trust services

Conversion

Increasing nb of payment

methods

Cross border transactions

Customer loyalty

AI as technologies disruptor

Allow machine to accomplish task human execute with intelligence

Mc. Carthy

50’s

Artificial Intelligence

Machine Learning

60’s 70’s 80’s 90’s 2000 2010 2015 2020 2025

Deep learning

AI to bridge digital consumers’ needs

Convenience Real-time

insight

Personalization Consistency

Knowledge

Reasoning

Perception

Communication

Rule based engine

Probabilistic programming

Natural Language Understanding

Sentiment Analysis

What does it imply? What forms can it take?

Importance of personalization

Personalization is the difference between spam and advice.

From Revolut to Apple (and soon Google) – challenger banking is scaling up

1.3bn iPhones 72 Net Promoter

Score (NPS)

3.5m Users €500m in funding

3m Users 50k new

accounts/week

7m Users 4.9 in iphone

appstore

Opinion On Wall Street

Cache crunch: Google-Citi deal could be future of banking Others likely to follow the tie-up between West Coast tech and East Coast finance November 16, 2019

Banks are losing valuable customer touchpoints – transaction by transaction

1/3 of UK millennials say their primary banking relationship is with a challenger bank

AT Kearney Survey 2019

Should banks be worried? Banks have customers and users while Apple has fans

In 2019 Apple Card generated $10B in new line of credit in first month following US launch

Why are people switching? Customers attracted by simple and personalized user experience

Contextualizing

transactions with

categorization &

insights

Seamless, targeted

cashback rewards

empowered by real-

time data

Rich functionality to

personalise digital banking

& position bank as a

“trusted financial advisor”

Financial

Gamification

Richer

Transactions

Instant Cashback

Rewards

Changing POS text

into meaningful

brand and spending

insights

Brand

Insights

► What is my carbon footprint?

► What merchants could I like based on my current spending habits?

► How are my expenses trending?

► Can you find discounts for me?

► Can you help me save?

Transactions can be turned into compelling personalized stories and use cases

What barriers do we encounter and how do we overcome those?

Valuing customer data with AI

► Basics First: Aggregation, Consolidation, Data cleaning and Enrichment is the foundation – otherwise you have “Garbage in – garbage out”. Usually 70%+ of effort

► Segmentation algorithms – key to personalization

► Predicting future behaviour – key to upselling and cross selling

AI only valuable if it drives meaningful use cases

Aggregation, Consolidation and Enrichment

Segmentation example: Relevance of merchants for each person based on past spending

Prediction Algorithm Example - Upselling

► Providing traditional sales channels with information on when clients are most likely to need a new card

► 300% increase in card uptake

How will conversational banking improve customer interactions?

Turning interactions into conversations

Conversational Banking

The 4 ‘A’ framework

Define the targeted customers by defining

personae !

Audience

Map your conversational strategy to your

business goals

Aims

Define the list of services you want to roll-out

and prioritize it.

Approach

Implement technologies to build and

experiment your conversations

Apply

…is not a technology but a strategy to engage customer !

Conversational Banking The 4 “A” framework in application – Bank Of America – Erica*

10 Million

Users since

June 2018

100 Million Requests

since

June 2018

Audience Aims

Approach Apply

Targeted audience

• 25 millions mobile customers

Repartition per generation

• 15% Gen Z

• 49% Millennials

• 20% Gen X

• 16% Baby Boomers or Seniors

Reducing costs by

• Improving self-service features

Keep users engaged

• Delivering valuable insights

• Offering quick & easy payments

features (bills, p2p…)

Deploy on the mobile channel first

Make an initial roll-out on Daily

Banking Activities

Update Erica with proactive financial

features

Conversational Platform

Personal Finance Management

Risk Scoring engine (Fico Score)

*https://netfinance.wbresearch.com/bank-of-america-ai-powered-chatbot-strategy-ty-u

Conversational Banking The 4 “A” framework in application – Capital One – Eno*

Audience Aims

Approach Apply

Targeted audience

• All Capital One customers

Initial Value proposition

Check credit card balance

Reducing costs by

• Improving self-service features

Keep users engaged

• Delivering on security promises

• Help users manage their money

anytime anywhere

Deployed a beta-version first (2015)

Make an initial roll-out on credit card

balance

Add security-layer with 4-digit PIN

Iterate to finetune conversations

Conversational Platform

AWS Connection

*https://developer.amazon.com/fr/blogs/post/Tx3GO7OTYATKAU0/Money-Talks-with-the-Capital-One-Alexa-Skill

Live

since

2016

Rated

consistently

4/5

Our receipe to provide top conversations !

Active.ai features (ex mispelling)

po

Our recipe to provide engaging conversations

Conversational Banking

Customers expect convenience…

not conversations !

Start with the basic use cases

Account consultation, transfer, card management…

Define main conversational logic first

Train your model to make it more comprehensive

Build bridges / not silos !

Context is key to provide delightful conversations

Don’t forget “Human” handover The most effective agent manages the task at hand,

human or conversational

How to empower customers with contextual, tailored insights across channels?

AI-enabled, personal conversations

Motivations

- Utilatarian benefits

- Symbolic benefits

- Social benefits

Conversational banking and adoption

Motivations and pain points

Pain points

- Perceived security & privacy concerns

From conversational stranger to loyal customer

Creating Trust

Personalization

Proactive conversations

Personality

Conveying emotions

You know me

You know what I need

I know you

I know how you feel

Tailoring the conversation for each consumer type

User segmentation and expected outcomes

The right information for the right

person at the right time

General topics for anonymous users

Information about finance, the brand, the values…

Onboarding for prospects

Provide cross-channel engagement

Account services for clients

Provide clients with a secured and personalized

conversational environment

No answer : not an option

Provide access to other channels for out-of-

conversational-scope requests

Conversational banking throughout the customer journey

Assist consumers end-to-end

What can I help you with?

Answer actual questions

Use data and user research to define main use cases

Anticipate course of action

Use customer journey map to anticipate next steps

Suggest useful content

Maintain engagement through valuable content &

offers

Tailoring the conversation for your bank and its unique customers

Adopt appropriate tone of voice

Consumers are looking for

uniqueness and relatability

Be unique and on-brand Conversational content should integrate with overall

brand image and be unique to your bank

Adapt to specific situations & emotions Tailor your tone of voice both for positive and

stressful situations

Be inclusive

Make your conversational agent characteristic but

not a character

A step-by-step process to creating efficient conversation

Conversational UX

Research Understand users and their expectations

through quantitative and qualitative data

Define Priority use cases and tone of voice

Design

Tailor conversations for your bank using

its unique vocabulary and tone of voice.

How will conversational banking improve customer interactions?

Deliver compelling experiences at scale

Financial

coaching

Daily banking

assistant

Data analysis

Mass personalization

Predictive insights

Payments,

Security & identity

Digital services

Voice UX

Conversations design

Behavioral studies

Personal,

conversational

banking