Glia anticipates the combination of rising interest rates and inflation, along with the coming of age of Gen Z, will create a growing need for seamless digital-first customer service
Glia, the leading provider of Digital Customer Service, today released top trends for the second half of 2022. Rising interest rates, predictions of a potential downturn, and the increasingly important battle for Gen Z are expected to shape how banks and credit unions approach customer service and support.
Improving the customer experience is the top business priority for 2022 according to a Super Office poll of 1,920 executives. That increasingly means digital customer service as a means to engage customers, deliver a seamless experience and drive more conversions during a period where opportunities may slow down.
As interest rates rise, customers and members will need more support from their financial institutions. Loan origination and loan servicing will be more critical than ever to banks’ and credit unions’ strategies as rates increase and the market anticipates a potential downturn. To remain in solid financial standing, institutions will need to increase loan conversions to offset the declining mortgage application demand.
Rising rates and changing market conditions have proven to result in an uptick in customer questions and concerns. Those institutions that force customers to disengage from the digital journey to dial into a clunky phone interaction will weaken customer relationships, causing borrower abandonment and lost revenue opportunities. To offset this risk and improve the borrower experience, more banks and credit unions will incorporate Digital Customer Service into their lending operations.
Fintechs offering emerging technologies will embrace more modern customer service strategies. Advancing technologies such as cryptocurrencies and Web3 have certainly caught consumers’ attention, but confidence in these areas is still shaky at best. Take the recent headlines around Coinbase, its significant market volatility and widespread layoffs do not inspire trust.
Given the severity of the questions and issues arising around areas like crypto, stronger customer support is needed for these companies’ survival. Just look at the angry tweets directed toward Coinbase’s Customer Support account; the current disjointed, phone-centric strategy is clearly not working. In response, expect more fintechs, especially those revolving around emerging technologies, to start embracing Digital Customer Service to deliver continuity and choice within the digital domain. When customers have concerns about something as critical as their investments and finances, they need quick, seamless and thorough support.
Conversational AI and automation drive new efficiencies. To manage an increase in inquiries and to provide 24/7 service, a growing number of banks and credit unions are deploying virtual assistants. The emergence of vertical chatbots developed specifically for financial institutions is driving broader adoption. In fact, 1 in 2 credit unions plan to have a virtual assistant by the end of 2022.
Financial institutions that offer a seamless customer experience across virtual assistants and human customer service representatives are seeing significant improvement in efficiency. Look for Conversational AI that is tailored for banks and credit unions, ideally as part of the DCS platform.
Institutions will abandon the unrealized promise of omnichannel in favor of ChannelLess Architecture, an entirely digital experience. While omnichannel was a strong concept in theory, the industry has grown disappointed with its unrealized potential. Omnichannel’s failure to live up to the hype is largely because the platform is based on legacy phone-based systems when what consumers really crave is a fully digital experience. Moving forward, digital natives will no longer tolerate being forced to leave the digital domain.
This shift is especially important as Gen Z enters the workforce; the battle for their loyalty is on. And, it’s not just younger generations that have no tolerance for the digital disconnect. A recent Ipsos-Forbes Advisor survey revealed that nearly 80% of customers now prefer digital banking above any other method. Financial services companies must be able to engage customers and prospects OnScreen.
“During these economically uncertain times, a seamless customer experience is more important than ever, and in 2022 that means digital-first service. Financial institutions that embrace Digital Customer Service will be well positioned to weather any storm and positively contribute to their bottom lines while strengthening customer relationships this year and beyond,” said Justin DiPietro, Co-Founder & Chief Strategy Officer of Glia.
Glia is reinventing how businesses support their customers in a digital world. Glia’s Digital Customer Service (DCS) solution enriches web and mobile experiences with digital communication choices, on-screen collaboration, and AI-enabled assistance. Glia has partnered with over 300 banks, credit unions, insurance companies and other financial institutions worldwide to improve the customer experience and drive business results. Named both a Deloitte Technology Fast 500™ company and a Great Place to Work (with a 97% employee satisfaction rating) for a second year in a row, Glia continues to achieve broad industry recognition and customer service thought leadership including publishing the definitive book on DCS with Wiley. The company has raised over $150 million in funding from top investors. To learn more, visit glia.com.