Are you a community bank experiencing a drop in account openings? You are not alone.
Across 10 aspects—including quicker applications, automatic password set up, and clear explanation of security practices—customers prefer the mobile account opening process rather than online or in a branch. Yet, with 98% of community banks offering mobile banking, why did new account openings drop as much as 51% to 25% for these smaller financial institutions?
Account Opening Ratings by Attribute and Channel. SOURCE CORNERSTONE ADVISORS
Down to sheer economies of scale and technical expertise, megabanks and digital-first banks are increasingly able to reach new consumer segments with their latest products. But how do community banks, with fewer resources, keep up? This is where community-based financial institutions (CFIs) need to get savvy. Rather than looking to capture every sector and simply adopt the latest technologies, they must dig deeper into their own community, identify their unique needs, and offer suitable products.
CFIs exist to support their community, but customer expectations are constantly changing. In a digital-first world, BOND.AI are stepping in as a connector between CFIs and their customers to guide them in best meeting customers’ needs. Let’s find out how.
Customers want different things!
Mobile banking apps, crypto exchanges, and play-to-earn models are all on the rise—but how do you know what financial services your customers need? We start with the Empathy Engine®. Its advanced data analytics connects consumers' financial behaviors, capabilities, and needs to holistically understand them, and generate multiple paths to boost their financial lives.
CFIs that utilize our Empathy Engine® can take advantage of these integrated products: the BOND Network, conversational AI, and speedy onboarding services to enhance the user experience. The combination of these services helps to discover:
1. What customers are spending on: The best part about working with the BOND Network is you can extend this answer beyond the transactions in your bank alone. Find out what customers are spending elsewhere too! This helps community banks identify trends and get to the heart of consumer behavior and needs to understand what products your customers are missing.
2. What are your audience’s financial capabilities? Customers may be looking for different products, or simply not know how to use your products. Financial aptitude tests work like Duolingo—asking questions and grading knowledge. This way CFIs can bridge the gap between product knowledge and customers' needs to ensure they suggest the best products for each individual too.
Artificial intelligence (AI) data analytics supports CFIs in creating consumer profiles from thousands of data points to identify key trends within their unique community. The next step is to dig deeper into these patterns and anomalies and validate the findings for more accurate insights.
The community–bank validation loop
The only way to truly understand your customer is to get to know them, personally. Continuous communication helps CFIs respond to customers' needs and, over time, build trust. But with low labor budgets and time constraints, it can be tricky to speak to each individual one-to-one. This is where conversational AI comes in.
One of the most frustrating elements in customer service is not getting a response. Whether it's hours waiting on the line for a live agent, or chatbots making promises to connect you and not following through. Empty promises remove trust. This is why we combine the BOND Network with our conversational AI. Powered with advanced banking knowledge, our chatbot services can filter through a wide variety of banking issues and are there 24/7 for customers.
The important part of any new tool is to ensure customers using them receive resolution. In cases where chatbots cannot answer a question, automated alerts can notify data analysts and agents to dig deeper into the issue. And with each conversation, data-driven fintechs can re-analyze and re-segment to fine-tune the needs and products of the CFI’s specific community.
When customers feel their needs are responded to, you build trust. Leave them hanging, and you’ll send them away. At BOND.AI we offer product demonstrations with small sample audiences so you can see the results for yourself!
Want to learn more about your unique community? Book a demo today.