Artificial Intelligence Can Enhance Customer Experience in Digital Onboarding

by | May 5, 2021

How Artificial Intelligence Can Improve CX During The Digital Onboarding Process

Artificial Intelligence (AI) is not only changing the way organizations operate, it is also significantly improving customer experience (CX). Today, artificial intelligence can enhance customer experience by streamlining online processes, such as digital onboarding, and taking communication beyond the level of personalization achievable using historical data.

Organizations need to prioritize AI in CX. They must actively look at ways to leverage its power to improve current communication and online processes, which ultimately contribute to a better overall customer experience. In this post, I will explore the role of AI in CX as well as discuss how Machine Learning and Artificial Intelligence can enhance customer experience in digital onboarding.

What is the role of Artificial Intelligence in Customer Experience (AI in CX)?

Artificial Intelligence is the ability for computers to act without being explicitly programmed, thereby becoming capable of ‘intelligent behavior.’ When applied to customer engagement, it can determine the customer’s next requirement and enables the organization to address that requirement proactively.

Machine Learning (ML) is a subset of AI that enables learning through repeated patterns. ML is great for content creation, when deciding which content is best suited to each customer, based on data on hand.

  • Machine Learning uses data relating to past behavior, demographics, psychographics and location to create content and streamline online processes.
  • Artificial Intelligence predicts user behavior and applies content based on that prediction to preempt the user’s next requirement.

AI can enhance customer experience in digital onboarding during the critical 90-day onboarding period

Financial services firms are always looking for ways to increase share of wallet and loyalty. Both of these objectives can be achieved through a comprehensive and CX-focused onboarding process, powered by AI.

From a customer standpoint, the onboarding process must be quick, convenient, and seamless, or the financial institution runs the risk of a prospect abandoning the account in the midst of account opening, or before funding it. This need for simplicity and speed on the front end means that the “heavy lifting” of account opening must occur behind the scenes, with the assistance of AI and other security technologies.

During the onboarding process, the financial services firm must confirm the identity of the applicant, to adhere to KYC (Know Your Customer) processes, as well as anti-money laundering regulations. Financial institutions are compelled to do checks on digital account openers, to ensure that the application is being completed by a human and not a bot, as well as verify the identification of the applicant and obtain a credit rating.

But, in order to provide the best possible CX during digital account origination, the required identity and credit checks need to happen in the background, in real-time to avoid inconveniencing the customer or contravening their data privacy rights.

When machine learning is applied across the broader industry to solve this problem, the technology can analyze millions of data points across hundreds of institutions. This collective intelligence is constantly retraining itself, which helps the entire industry to minimize the risk of bot attacks, identity theft and money laundering.

In fact, by using machine learning and real-time decision-making, AI-enabled platforms have achieved a 5% reduction in the rejection of good customers and 100% explainable identity verification (FINTRAC compliant).

AI can leverage the data shared during client onboarding to extend your product/service offering

Financial services customers exhibit the greatest propensity to adopt new services during this crucial first period, so getting the right offer in front of them quickly helps build lifetime value, while making them feel like your institution understands their needs.

AI can be used to identify additional products and services that may benefit a customer, based on the data they share during the onboarding process. Before you can enhance customer experience using AI and ML, you need to have the appropriate data available to enable the process. Data is essential for AI to function and deliver on the promise of enhanced communication.

Having a strategic plan for structuring and accessing data is now more imperative than ever. The plan must include everything from standardization of data labels, getting data in and out of a central repository, to moving toward a single customer view.

Provide clients with a simple, frictionless digital account opening experience, while completing the required checks and verifications in real time using Doxim’s secure platform. TALK TO A DOXIM CEM EXPERT

3. Expansion of digital products

As banking customer behavior shifts, banks must move with the times, or risk getting left behind. Many banks today are exploring the power and potential of open banking, which can allow them to offer more innovative products and services to their customers, as well as to better compete with fintech companies and other non-traditional financial service providers.

As you shift your banking business model to reach new segments or provide an enhanced array of services, communication becomes even more pivotal to your success. After all, if your customers don’t know which new services they qualify for, or how those services will help them meet their goals, then they are unlikely to explore them further. CCM technology can be leveraged here to provide personalized on-statement messaging that directs customers to the right products and services, as well as 1:1 personalized “explainer” videos to help them get started.

Adjusting your bank’s priorities to thrive in 2023

In an era of constant change, the key to successfully transforming your bank’s business model will be to stay attuned to the changing needs and preferences of customers, and to be open to exploring new opportunities and technologies that can help your FI stay competitive and relevant. But these new opportunities are doomed to fail if you do not clearly communicate their benefits and make it simple for customers to access them.

That is why transforming your customer communication strategy is the best first step to broader digital transformation. By updating your approach to communications to meet omnichannel customer needs, you also position your bank to communicate the benefits of changes in your broader organization, like new or enhanced products and services. The pace of change in banking has never been brisker – but with the right strategic approach to these changes, the future is bright.

Investing in a modern customer communication management and engagement platform is an essential part modernizing your banking strategy, as it can provide the personalized digital experiences that will keep your bank or credit union ahead of the competition. It helps provide a great customer experience, and builds rich relationships, which in turn results in customers for life and a competitive advantage in the rapidly evolving financial marketplace.

How Doxim can address the banking customer communications trends identified and help future-proof your digital banking strategy

banking customer communications trends

Doxim’s experienced consultants and omnichannel platform can help transform your customer experience in many ways, including:

  • Gathering and utilizing customer data to continually improve the personalization of communications.
  • Building trust with customers via communication (via print, PDF, HTML, email, text, and online interactive experiences).
  • Leveraging interactive video to drive personalized digital customer experiences, such as interactive statements, bills, or reports, that offer visual engagement and real-time interactivity
  • Putting customer data, including customer statements, at the fingertips of your service representatives for immediate and personal service.
  • Making a meaningful connection with value-added content, like information about philanthropic activities, on customer statements.

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