The fintech revolution is somewhat unique. That’s because many of the fintech products offered aren’t exactly new. They’re essentially more convenient alternatives to traditional financial services. For example, since you can complete many basic financial tasks with a banking app, you don’t need to travel to a branch. This saves customers a lot of time and money.
Fintech companies deliver this enhanced convenience in many ways. Automation is one of them. By identifying efficient new ways to streamline key processes, fintech startups can improve upon old methods.
The following examples illustrate some of the more notable ways that fintech automation is changing the financial services industry. Banks and other traditional financial institutions that are striving to stay relevant in a changing industry should consider how they can leverage automation to improve their own services.
It’s important to understand that automation shouldn’t be seen as a way to replace human workers. On the contrary, automation can actually help human employees to perform their jobs more effectively than ever before.
Consider the example of a financial advisor whose job is to help clients grow their savings. To some degree, this often involves seeking out strong investments.
Automation makes finding those investments easier. Through tools such as artificial intelligence (AI), financial advisors can efficiently analyze key data to make the best possible decisions. Additionally, because many clients have strict parameters in regards to the types of investments that they feel comfortable making, financial advisors may use automation tools to find investments that fit their parameters. The result? Happier clients and more efficient advisors.
Convenience isn’t the only reason why some people opt to use fintech products instead of traditional financial services. The fintech customer experience is often enhanced, as well.
That’s because fintech companies often rely on automated customer support. While there are customer support issues that a human representative would need to address, there are also many issues that a chatbot could handle.
Customers appreciate the fact that chatbots are always available when they have questions. There’s no need to wait for a human representative to be available. If the bot is unable to address a customer’s needs, it can simply refer them to a human worker for additional assistance.
That’s another way in which fintech automation will actually improve the on-the-job experience for human workers. When they aren’t occupied with addressing minor customer support issues, they can spend more time focusing on the more complex issues, resulting in a greater overall customer experience.
Understanding Customer Needs
Customer attitudes are always changing and developing. For example, surveys indicate that today’s consumers are interested in personalized service. They want brands across all industries to treat them as individuals.
This would usually be difficult to do. Financial institutions would have to review the behavior of each and every customer, then tailor their services accordingly.
Automation turns this once nearly impossible task into a relatively easy one. For example, perhaps a banking app is equipped with a strong AI designed to monitor user behavior every time a customer opens it. The AI would collect the relevant data automatically. Depending on the app’s features, it could also provide personalized services based on what type of data that the AI has about the customer.
Perhaps a user frequently withdraws a certain amount of funds from one account and then moves them to another when their paycheck is deposited. An AI might “act” on this in the future by sending a user an alert asking them if they’d like to make that transfer the moment their paycheck is deposited. Not all users would find such an alert to be relevant, but that’s the point: the experience is different for each customer based on their own needs and preferences. Because consumers indicate a desire for greater personalization, this represents yet another way in which financial services companies can make the right impression on their customers.
Automation doesn’t simply improve the services that a fintech company provides. It also improves the way in which a company markets its services.
In the digital age, there are many channels through which marketing teams can reach their audience. Not all of those channels will deliver a strong return on investment. Through AI and automation, marketers can analyze the relevant data, helping them to identify those channels on which they should focus.
They can also automate their campaigns. This helps to maintain consistency across a multi-channel campaign. If a brand is sharing its content across many channels, automation tools can post the content according to a predetermined schedule. Once more, this allows human employees to work more efficiently.
These examples clearly illustrate the value of automation. Any financial institution that wants to survive the fintech revolution should keep them in mind. As new innovations develop, we can almost certainly expect to see even more automation in the future.