It has become evident that over the past decade the BFSI industry is heading toward a major overhaul. The credit of this overhaul will undoubtedly go to the millennials – who will soon be the key consumer group in this industry.
To prepare for this overhaul, the BFSI industry has seen many changes, mainly technological. As AI & ML are used to understand the needs of customers and create adaptive technology, consumer expectations for a better user experience are at their highest – as is true with the BFSI industry.
Thus, to meet these needs, companies are implementing new trends. What are these trends? What challenges can you expect? If you are someone who works in the BFSI industry, you must know these things.
This blog will help you answer those questions. First, let’s talk about some UX trends gaining traction.
Digital and Physical Solutions
Users now expect to be able to do all their banking online – more so with the pandemic at hand. Their expectations aren’t only restricted to making transactions, but also opening accounts, and enrolling in various services.
Features like; online forms, biometric authentication, chat support, and FAQs are used to create a better user experience.
AI For Personalization
Standardized applications with a defined list of features will soon become obsolete. Consumers expect their applications to adapt to their ever-changing needs. AI is the answer.
Organizations are using AI to understand their customers, their spending patterns, investment probabilities. They use this data to improve marketing and advertising strategies. For the consumer, this means receiving relevant information.
A user experience is no longer defined by their experiences on one platform. A consumer may start a transaction on one device, and finish it on another. The question is, does your UX strategy allow for continuity in the workflow?
An omnichannel experience allows for your consumers to connect with you, seamlessly, through any device or physical location, regardless of where they may be. This is a vital contributing factor to a good user experience.
While the addition of technology promotes a customer-centric approach to work, stakeholders within the organization will also need to be made aware of this culture shift.
For many, this culture shift will be new, thus training and development are key. Achieving a successful implementation of DevOps will mean better results in user experience.
Experience Not Loyalty For Millennials
As mentioned at the outset, millennials are the next generation of consumers, many of whom have already taken their first steps into the BFSI industry. If there is one thing that we have learned from their interactions, is that brand loyalties no longer the norm.
How can I say this? An article by HubSpot brought out the fact that 50% of loyal customers have left a company for a competitor for better service and experience. With Millennials coming in, expect this trend to rise.
Understanding the User
Creating a great user experience will only be possible once you understand your user. How would you do this? UX specialists need to know what questions to ask to draw out the interests of their consumers.
You must be adept at making the best use of captured data – using it to identify challenges, financial behaviors, spending patterns, etc. All this will help you provide the right services and enhance their experience.
The Daunting Legacy
Many financial organizations have made transitions from Legacy systems to digital. For many others, however, this may seem like a daunting task, and with due reason. Moving from legacy systems is undoubtedly a challenge.
However, having legacy systems proves to be a boon for effective UX. Firstly, legacy systems are not easily scalable, and although scaling is an option, it isn’t cheap. Secondly, legacy systems are not adaptable to the needs of the organization.
Scalability is key since it can help accommodate a lot more valuable data. Adaptability ensures that your data storage solutions adapt with you, as you quickly adapt to changes within the industry.
Scalability and adaptability keep you relevant and empower you to provide the best user experience – by helping you to gather valuable data and apply the latest trends.
Perhaps the greatest challenge for the BFSI industry – Security – (all) the more so since there is money involved. Ideal concerns would be hacking or misusing data. Social media can be another area for security breaches.
However, there are many solutions to combat security breaches or any other threat to data. Many platforms that enable migration from legacy systems also offer a comprehensive list of tools that ensure high security.
Assurance of security will naturally put consumers at ease – which is also a part of user experience.
All About the Communication
With social networking being the norm, communication is a key aspect of service. Consumers now expect, sometimes demand, to be able to communicate with brands, and not just physically. Consumers expect high-quality customer service.
Moreover, consumers expect to have their concerns heard and addressed. They are more likely to voice their concerns than just waiting for a solution. Plus, with search engines on their side, consumers are more informed than ever before – although not always with the best information.
The challenge the BFSI industry faces is to master customer service. Stakeholders must be trained in customer service etiquette. They must be taught how to draw out the interests of their customers, and they must learn to show genuine concern.
When a consumer feels like his concerns are being taken care of, he is more likely to be loyal. Good customer service directly correlates to a good user experience.
This blog intended to give you an idea of the current scenario of UX, in the BFSI industry. Reading about these trends and challenges should show you the path you need to take.
I am organizing a free webinar on Digital Banking Trends & Challenges, this Friday. Be sure to register here.