3 ways banks and credit unions can use AI to power financial wellness initiatives

Financial wellness has long been part of the strategic vision for financial services institutions seeking to build customer loyalty and, by extension, create a durable revenue stream. Regional banks, community banks, and credit unions in particular, are motivated to differentiate themselves from megabanks by becoming true partners with customers and members on their financial journeys.

Unfortunately, delivering on the promise of financial wellness has been a challenge for two primary reasons. First, it has been difficult for firms to find capacity in their workforce to dedicate to this cause. Second, effective delivery of financial wellness services to customers will require upskilling of the workforce. Perhaps most significantly, the technology to deliver broad financial wellness services in a way that is scalable, effective and financially viable hasn’t been there.

The contact center offers an interesting potential delivery mechanism for financial wellness. As banks and credit unions are adopting more artificial intelligence (AI), including generative AI (gen AI), technology in the contact center, the results are clear: AI is creating capacity in the workforce by automating many simple service requests and business workflows.

Creating capacity for more valuable dialogue makes a greater positive impact on the financial lives of customers. Not only is AI creating capacity for richer engagement with clients, it also is augmenting the workforce itself, promoting better service outcomes by equipping customer service agents with the insights, information and expertise they need, in near real time, to offer white glove support in every client interaction.

Below are three specific ways these financial institutions can deploy AI to serve the financial wellness needs of customers/members.

Maximize adoption of AI to generate capacity in your workforce

Modern digital consumers place a premium on self-service capabilities. AI-powered automation excels at enabling bank customers and credit union members to help themselves quickly and efficiently.

Automation makes it easy for financial services consumers to check their account balances, transfer funds, make payments, compare interest rates, and more. These are all activities that in the past may have required human interaction between bank/credit union employees and their customers/members. Further, financial services consumers can enjoy the convenience of using AI and automation across multiple channels.

In addition to improving the customer experience, AI and automation free up bank and credit union employees to focus on higher-value activities – such as working with customers and members on financial wellness. This in turn adds even more value to the consumer experience.

Use predictive analytics to anticipate the financial wellness needs of customers/members

Every interaction with bank customers and credit union members gives these institutions valuable data that can be mined to create personalized products and services.

Predictive analytics also can be used to boost revenue by identifying cross-selling and upselling opportunities. Finally, by analyzing consumer data, banks and credit unions can better assess risk, thus reducing the costs associated with bad loans.

Leverage real-time analytics and Gen AI to help customer support employees in real time

Bank customers and credit union members don’t want to wait on the phone while a support agent searches for information relevant to their conversations. They expect the agent to already have the information; if the agent appears confused, unsure, or unknowledgeable, a customer/member might think, “If they don’t even know me, how can I trust them with my finances?”

Real-time analytics and gen AI can be used to guide employees through contextual conversations with customers/members. AI ensures call center agents have the right customer/member information at the right time, while sentiment analysis capabilities help call center agents navigate challenging customer conversations and situations with real-time suggestions.

Conclusion

Capacity issues have long prevented banks and credit unions from supporting financial wellness strategies and programs for customers/members. A modern contact center offers an exciting opportunity for community banks and credit unions to leverage innovative technology and an empowered workforce to finally help their customers and members realize their financial goals.

Rahul Kumar is Vice President and General Manager for Financial Services at Talkdesk.