Look up. Look around. Look ahead.
All of us in banking — from traditional titans to kicky upstart fintechs — are on the qui vive right now, trying to suss out what today’s shifting consumer behaviors and technological innovation will bring in the year ahead. Will 2024’s customer experience strategies work as well in 2025? Maybe. Or not.
What is clear: There’s a handful of industry developments that warrant a closer look. While no one can completely predict how things will land, it’s worthwhile to think about hypotheticals and how best to position the organization to flourish given different scenarios. Ready for a little introspection? Let’s go.
Interest piquing (not peaking)
The Fed’s September interest rate cut of a half-point was deeper than projected, with another reduction expected by year end. Are you ready for the volume coming to your contact center? Home buyers who have been holding back will be ready to pounce.
With average credit card rates near 25%, consumers will be eager to consolidate their credit card debt, but many may not understand how the process works. Contact center associates who make the debt consolidation process easy (pleasant, even) lay the groundwork for a relationship that blossoms over time as young customers start with building credit with an eye toward retirement planning.
Game of loans
The industry is pleased people are paying their bills but we’re really on the edge here. Consumers are stretched thin and those in the 30- to 39-year-old age bracket are sinking into delinquency faster than anyone. Many are maxed out on their credit and default rates are ticking up.
Enter the collections conundrum: How do you prepare for changes in collections activity? What offers are you willing to extend to consumers feeling the pinch? How aggressive should your strategy be? Is it centered on gentle payment reminders or focused on negotiating payment plans? It’s a fine line. Always important to have empathy to protect the customer relationship and we have innovative ways to accomplish this.
What’s your AI IQ?
The opportunity for artificial intelligence to advance business objectives is alluring but many in our industry are still learning. One study found that executives, even those educated about generative AI, lack understanding about what AI can and cannot — or should not — do. A whopping 82% of executives surveyed by Forrester mistakenly believe AI is reliable at looking up and validating facts, for example.
Leveraging the power of innovative technology like AI calls for guardrails and the Consumer Financial Protection Bureau’s open letter to the industry contains noteworthy guidance. Are you satisfied your leaders understand the implications of AI and its inherent bias? AI cannot be used as an excuse to circumvent equal opportunity lending laws and CFPB has some helpful dos and don’ts.
The big switch and locking in loyalty
Customers have no compunctions about switching from one bank to another. Young borrowers have seen their student loans bought and sold repeatedly over the years. The loyalty their grandparents had to institutions branded with the words “trust” or “security” does not resonate with them. Instead of asking: Is this bank safe or trustworthy, they ask: Do its values align with my own?
Aspiration Bank’s Plant Your Change program, for example, invites customers to fund tree planting with every purchase made on their debit cards by rounding up to the nearest dollar. For the climate-conscious, this is very important.
Organizations looking to bring their values to the fore to attract likeminded customers must ask: Does the experience delivered by the contact center match the brand and values promoted across all channels? If there’s a disconnect, you can bet consumers see it and they will walk because authenticity is sacred to them.
In the banking world, many are looking to build out their stack to include more modern architecture, cloud, AI, data warehousing/data lakes, and middleware that’s more flexible across a variety of applications. To make it all work in harmony — and compliance — takes a dedicated partner with a vision for what the future can bring.
2025 is just around the corner and last year’s model of CX won’t cut it. There’s a whole raft of intriguing strategies and technology innovations to explore. Let’s go!
