As consumers become increasingly reliant on instantaneous technology, the financial sector is delivering on their customer's expectations. In the UK, the open banking standard is driving innovation and creating an environment for new digital disrupters to enter the market. Figures show it won’t be ending any time soon, with the open banking sector set to quadruple in size by 2022. The banking industry is realising the benefits of a digital-centric customer experience; with investments in technologies having increased significantly since the standard was first put in place in January 2018.
Meanwhile, in the broader financial services space, there is still progress to be made. It’s not surprising that a recent digital survey showed finance consumers have a stronger emotional connection to technology brands like Apple, Amazon, and Google than to their banks or insurers. So how can the financial services sector keep up?
How is the Finance sector fighting back?
In response, the finance sector is deploying a mixture of strategies to stay ahead of the game, including higher technology spending on channel improvement—branches, ATMs, Digital Contact Centres, and digital banking. Many have adopted “mobile first, digital everything,” as a core strategy with a mantra of delivering simply brilliant customer experiences. As we have seen, many of the innovations in other markets tend to involve using digitisation to support hyper-personalisation of service & cut costs of existing processes, and this is still the case with the finance sector.
The Rise of ‘Open Insurance’
The mindset of ‘Open Insurance’ is something we are increasingly beginning to see appear within the Insurance industry. While generational change is still buffeting the insurance industry, many insurers are becoming more comfortable with new technologies and changing from product-focused to customer-centric organisations. They are increasingly open to forming partnerships with modern cloud enabled InsurTechs and using technology and new ways of thinking to streamline operations, better serve customers and augment a changing workforce. By opening up their ecosystems & data, insurers have the opportunity to achieve true insight & agility, while delivering a truly personal service to customers based on their specific preferences & requirements. A good example of this is the increasingly granular options available to consumers of the financial services industry.
The future promise of digitalisation enables customers to fragment their insurance cover and select only the options they are really interested in. For example, instead of comprehensive motor cover, a pay as you drive approach. Instead of contents insurance, customers having the option to protect only those items they really care about or would find difficult to replace. This trend points to a world where personal insurance is a relatively low value item, increasingly replaced by a broader offering of catastrophe insurance.
Brilliant Customer Experiences
Another significant differentiator we will continue to see in 2020 onwards is customer experience continuing to be one of the strongest differentiators over the consumers’ choice of provider. This means continued investment into AI-focused, contact centres. By treating the contact centre as an open platform that allows communication from a number of different platforms, it gives consumers the choice to make contact in any way they prefer. We have seen this recently with Yorkshire Building Society, who have now implemented an AI-influenced omni-channel contact centre to support their customer strategy.
These innovations show clearly that the future of the Insurance industry is about giving the consumer more choice & visibility over the service they receive, and this can only be achieved through integration of APIs, 360 degree views of customer contact across all channels, and creating ‘openness’ of data for 3rd parties. Those that successfully manage to ‘hyper-personalise’ by utilising these areas, will emerge as the winners in 2020 and beyond.
In a time of fast technological change within the financial services industry, Olive’s expertise & experience within the financial services market is helping businesses deliver simply brilliant customer experiences through technology. If you would like to learn more about the impact of technology on customer experience, why not book a slot to meet with our team of contact centre and CX specialists at this year's Call & Contact Centre Expo? You can book your free expo ticket here.
TOPICS: Financial Services