October 25, 2019

Webinar Highlights – Creating Winners and Losers in Banking

Webinar microphone featured

For the ‘Creating Winners and Losers in Banking: How Evolving Customer Journeys and Automated Experiences Will Differentiate Banks’ webinar, Forrester Research’s Principal Analyst Peter Wannemacher joined Jody Bhagat, Personetics’ President of Americas, for a lively discussion about the rise of Self-Driving Finance™, shifting customer journeys, and how banks can harness these forces to differentiate their brands.

To spoil the ending, the true winners will end up being the customers.

For the last century, the role that banks have played in their customer’s lives has remained the same. While providing a highly relevant service, the products offered have gone unchanged just as the business models, revenue streams, and even marketing approaches have remained the same. But this paradigm is changing as the customer journey evolves.

As competition drives banks, financial institutions and even tech-savvy organizations that originally sat outside of the industry (like Amazon and Apple) to ultimately fit into these new journeys, as opposed to the other way around, financial services will be reshaped to anticipate customer needs instead of just fulfilling transactional tasks.

On the industry side, the winners will be those organizations that can avoid being tarred with the perception already held by one out of three customers that “all banks are basically the same.” Those banks hoping to climb out of that sandbox need to recognize the latent demand for autonomous finance and acknowledge that it will eventually be ubiquitous.

“Autonomous finance: Algorithm-driven companies or services that make financial decisions – take action on those decisions – on a customer’s behalf.”

Financial institutions need to understand that the new customer journey is aspirational, not transactional. As Wannemacher aptly said, “they don’t want the mortgage, they want the home.” With this realization, banks can begin to design and deliver tools that help customers move forward based on their current and future predicted financial situations combined with the context that finance is playing in their lives at the time.

According to Forrester, there are three steps that banks should take now:

  • Familiarize themselves with the power of latent demand
  • Start using a “job to be done” lens to improve and innovate
  • Take a dynamic approach to exploration and iteration

As Jody Bhagat shared, a foundational element of automated finance solutions like Self-Driving Finance™ is the delivery of highly personalized experiences, and banks that embrace this will have an advantage. Using data and the advanced capabilities of artificial intelligence, predictive analytics, and machine learning, banks of all sizes can bring these automated, personalized experiences to all of their customers.

But, at the very core, it all centers around trust. Banks must climb the value hierarchy to earn enough trust from their customers that they allow banks to anticipate their financial needs and make decisions on their behalf.

How can banks get started? Bhagat said that they need to:

  • Perform data integration
  • Train & test machine learning models
  • Deploy & optimize from customer engagement
  • Extend solutions to deliver on priority journeys

With the continuing evolution of the customer journey, as front-end experiences become ever more automated, banks seeking to win the race to deliver on the promise of automated finance will really need to win the trust of customers first, building up not just their trust in algorithms to make financial decisions on their behalf, but trust in their brand as one that knows them and puts the their wellbeing as the first priority.

For further insight, download a free copy of ‘Financial Services Need to Rethink Personalization,’ a new report from Forrester that highlights why personalization is about customer loyalty and not just the next product sale.

And, for your reference, slides from the webinar can be viewed here:



Related resources:

Self-Driving Finance™

How Banks Use AI Today to Improve Customers’ Financial Lives

Beyond PFM: AI-powered Money Management

AI-powered Small Business Banking