Digital Versus Human Interaction: Striking the Right Balance
One of the biggest questions facing the financial services industry right now is to what extent we should be investing in traditional physical touchpoints and digital ones respectively. While many people claim the future is digital, we are seeing consistent evidence there is still a place and desire for human interaction in the financial services market.
Clearly, however, there is a balance to be struck between the two and those service providers which are able to get the proportion right will be the ones most likely to succeed in the next evolution of the business. However, those which fail to address this most burning of questions may find themselves struggling to provide their customers with the kinds of experiences they want and need in the future.
With that in mind, let’s delve a little deeper and try and work out how financial services brands can strike the right balance between human and digital interaction.
COVID-19
It’s impossible to have any conversation about human vs digital interaction without touching on the pandemic which upended all our lives just a couple of years ago. When banks and other financial institutions were forced to close their doors to the public as a result of lockdown restrictions millions of people flocked to digital banking – many for the first time in their lives – and have skewed the statistics on how much these services are required now the danger has largely passed.
Research has shown that, during the pandemic, people woke up to how much they missed being able to visit a physical bank branch. According to a 2021 survey, more than a quarter of participants rank the ability to visit such a location as the most important benefit of banking with a bank which has a physical presence. In the same survey, over half [55%] indicated they had visited a branch that year to deposit money into their account [32.22%], open a new checking or savings account [19.54%], or to meet with a financial advisor to discuss their personal finances [9.19%].
When we drill down a little deeper however, we discover that nearly half [48.46%] of US adults would feel comfortable interacting with an AI powered or otherwise automated system for tasks such as depositing or withdrawing funds from their account. Also, nearly two thirds of US adults have either had a video call with a financial advisor or would be willing to.
Human vs Digital
The research outlined above tells us a clear story – and one which is backed up by many similar studies – that customers desire a blend of human and digital interactions when engaging with financial service providers.
When it comes to simple transactions such as checking balances, making deposits/withdrawals, paying bills etc. people would rather use digital tools to complete these tasks quickly and easily. However, when opening new accounts, discussing financial planning options, or other more complex and personal interactions, they value talking face-to-face with a real human being. This is hardly surprising as we all know how easily things can be misconstrued when interacting through text or other purely digital means and that’s the last thing anyone would want when discussing anything as sensitive or important as finances.
We also see a desire to blend digital and human interactions – or rather to use digital technology to facilitate human interactions – in the rise in customers using video conferencing tech to engage with financial advice. Video conferencing rose to prominence during the pandemic and it has now settled into many people’s lives as a means of meeting with other people without the need to travel or wait in receptions etc. Video conferencing technology also allows financial advisors to meet with far more people in a day than they would have with in-person appointments – improving the customer experience for anyone who needs to engage with these services.
"Contrary to the plethora of predictions proclaiming the end of the bank branch, brick-and-mortar locations remain an important component of the customer experience,” says Insider Intelligence. "Recognizing this, financial institutions have started to optimize their branch network to reflect changing consumer needs.”
Final Thoughts
Striking the right balance between human and digital interactions is not easy, but any strategy must begin with listening to what customers are asking for. It can be all too tempting to assume we know what people want and to steam ahead with plans which disregard research and experience, but this is a clear mistake.
People still want human interaction in their financial services providers but want the flexibility to engage with digital tools when it’s more convenient to do so.
Striking the balance between human and digital interaction is sure to be a hot topic at CXFS 2023, being held in July and August at The Westin Copley Place, Boston, MA.
Download the agenda today for more information and insights.