Scott Draeger, SVP of Product Marketing and Vertical Solutions
Customers no longer tolerate poor communications. What was once ‘part of the process’ for finance customers is now a critical vulnerability for organisations, with 86% of consumers willing to abandon a finance, or insurance brand after just two negative experiences.
As digital banking opens up new horizons and more organisations undergo rapid digital transformation, customers have come to expect the convenience of modern, digital-first services. As a result, consumers are quick to switch to businesses that provide seamless, streamlined experiences, turning their backs on companies with clunky, outdated processes.
Heading into 2025, growing pressure looms over finance organisations to enhance customer experience (CX) and communications strategies. Otherwise, institutions could be at serious risk of losing many loyal customers over the coming year.
Digital natives and finance traditionalists: The comms problem at hand
CX plays a critical role in the success of any bank or financial services institution (FSI), and a one-size-fits-all approach simply won’t cut it. While recent findings have revealed that communications are increasingly important to consumers across various demographics and regions, under half of financial services customers rate the communications they receive as very good or excellent.
As generational shifts reshape the FSI customer base, understanding and adapting to individual preferences is more crucial than ever. According to our benchmark report, younger generations value completely different communication styles to older customers. Where Baby Boomers prefer traditional banking methods like in-person visits and verbal interactions, Generation Z consumers are more likely to gravitate toward digital channels like mobile apps. Why? Because personalisation comes first for younger demographics, while those from older generations prioritise clarity and easy-to-understand messages.
Recognising these key differences and catering to the unique communication preferences of different age groups is the first step to meeting the diverse needs of a bank’s customer base and forging better customer relationships. With two-thirds of healthcare, finance, and insurance customers likely to abandon an interaction if information collection is too difficult, now comes the time to break free from decade-old forms and reinvent the way in which finance businesses connect with their audiences.
2025 comms overhaul: What FSIs are addressing
The key area of focus for financial institutions in 2025 is information collection. By simply gathering and analysing relevant data, FSIs are better equipped to understand their customers’ needs, preferences, and behaviours. With accurate data collection, organisations can deliver consistent experiences across various channels, including online platforms and mobile apps, as well as in-person branches — ultimately creating the personalised, efficient service modern-day consumers are searching for.
In collecting consumer data, generative AI and machine learning can help take these initiatives up a notch, automating processes, individualising interactions, and even predicting future needs. Applying AI to customer communications in the financial services sector allows organisations to improve readability, increase formality, and easily translate content into other languages to deliver a simplified and inclusive service. And customers are on board, too, with 47% of financial services customers agreeing that generative AI has the potential to enhance the communications they receive.
For example, AI-powered chatbots can gather information through natural conversations, while machine learning algorithms constantly identify patterns and preferences with user data. This not only enables financial institutions to provide tailored advice but also offer proactive support on a variety of channels, from online banking platforms to social media, with AI assistants trained to match their unique brand voice.
It’s important to bear in mind that data collection is tricky business. With cyber threats only seeming to grow and become more sophisticated each year, data protection is more important than ever. If FSIs are going to gather data to enhance CX, it’s imperative that security comes first. After all, in finance, that’s what matters most.
Delivering experiences fit for tomorrow’s consumer
Above-bar communications are essential to building consumer trust and confidence in FSIs— an area the industry has infamously struggled with in recent years due to economic uncertainty. As we move into 2025, more financial institutions will prioritise customer-centric, digital-first communication strategies that leverage consumer data.
However, the efforts don’t have to stop there. To deliver a competitive service, organisations must consider embracing AI-powered solutions that take CX a step further, personalising interactions, anticipating customer needs, and providing seamless experiences across all channels.
