The benefits of humanizing automation

Automation is all the rage in financial services and beyond. From customer service chatbots driven by artificial intelligence to workflow managers able to string together the most complex and mundane of daily management tasks, there are endless possibilities for banks and fintechs to turn to technology, and in doing so, to remove human beings from the equation.

But as with any buzzy trend, we have to ask ourselves, “Do our customers really want this?” The short answer is, some do and some don’t.

Take something as simple as automatic payments. While many of us see this as a set-it-and-forget-it way to ensure that we don’t forget to pay our bills, for subprime customers, this lack of direct control can lead to overdraft fees and worse. As such, they avoid autopay at far greater rates than their more affluent counterparts.

In a recent customer research session, we met someone who exemplifies this issue. Joy is a 30-something mother of five from Florida. Like many making their way in our modern economy, Joy has multiple income sources – including part-time retail employment and a variety of gig work – and an equally complicated set of bills and expenses. Her personal budgeting system involves handwritten notebooks linking specific income sources to specific bills, organized by time and amount.

While this may seem cumbersome to those with more financial flexibility, it’s the system that works best for Joy. Attempting to automate this system would actually increase her stress levels as any transaction that isn’t accounted for could lead to missed payments or overdraft fees..

Joy is not an isolated case. Many subprime customers prefer a more hands-on approach to managing their finances. They want to feel in control of their money and understand where every dollar is going. Removing this control can add an extra layer of complexity, as they are forced to chase down and validate the automated decisions of an algorithm they don’t always control. And in their already complicated financial lives, this is the last thing they need.

So how should we consider the needs of our customers when thinking about automation? There are a few approaches worth considering:

Shifting our goals: As financial services institutions, our thinking should pivot from fully automating away all complications and toward reducing our customers’ cognitive load. Many individuals are spending hours each day thinking about and managing their finances. If we can reduce that to a few minutes, and – through improved clarity and thoughtfulness – provide them with even more confidence and sense of control, we will be making a meaningful difference in their lives.

This can take many forms. It can be as simple as ensuring that the user interfaces of a digital app match the mental models and language our customers use. For example, translating the abstract concept of a percentage-based APR to a specific dollar amount that will be charged when the customer’s payment cycle comes around. Or offering in-line education cues in the same interfaces that promote interest-saving behavior. There is no shortage of opportunities to help our customers reason through their day-to-day financial decisions.

Providing a sense of control: Where possible, customers should be given the choice of when, how and if they want to automate their finances. They should understand the value along with the potential consequences. And, most importantly, they should be able to opt out if they choose. More often than not, we see that when customers understand the benefits of the automation tools they’re provided, they gladly partake. But they’re savvy – they don’t want to feel like they’ve been forced into options they didn’t ask for.

Overcommunication: Communication shouldn’t stop after new automated capabilities are rolled out. While it’s tempting to aim for systems and tools that a customer never has to think about at all – good design is often invisible – the addition of alerting and providing moments where a customer can approve actions before they occur can go a long way toward providing peace of mind alongside the benefits of automation. An automatic payment, for example, becomes significantly less risky if there’s an opportunity to cancel it before it’s processed.

As banking continues to evolve at an increasingly rapid pace, it’s incumbent on us to balance the undeniable promise of automation with empathy for our customers and a deep understanding of their unique needs and circumstances. The future may be faster, more efficient and more productive, but it doesn’t need to be any less human.

Shane Berry is head of customer experience at Mission Lane.