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The customer expectations driving insurance change

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Carl Strempel, CFO and co-founder, Imburse

 

Customer expectations are continuously evolving, with simplicity and speed a significant priority in the current market. These expectations have been driven primarily by well-executed technology advancements in eCommerce. For example, many eCommerce platforms allow for instant payment and transparent tracking and delivery. Customers also have the option of availing of a chatbot, allowing for problems and issues to be solved quicker than relying on telephone customer support.

The best examples of these customer engagement solutions are integrated across multiple channels so that customers can switch from the chat-bot to a phone call to an email seamlessly, with the context and conversation retained. Companies and providers understand that there is nothing more frustrating for customers than having to explain the issue multiple times to multiple service representatives.

Customer expectations are continuously changing as mobile technology continues to make advancements. The growing prevalence of super apps that can do it all, from booking food deliveries to ordering taxis, is massively impacting customer expectations. These enhanced offerings mean that individuals are now also expecting this level of detail and personalisation from banks and insurers. Whether buying personal insurance for yourself or your family, or a CFO or risk manager purchasing commercial insurance for a business, customer expectations are rising. There is no longer an excuse for insurers to deliver a poor customer experience.

Insurers, especially in the retail and SME business, have scrambled to overhaul their customer experiences to meet modern consumers’ demands. For example, if an insurance company cannot turn around a quote for a comparison website within a few seconds, they won’t win any business. In fact, if they are not in the top three quotes with a competitive price, they are most likely irrelevant.

Carl Strempel

As a result, insurers need to think about their technology stack and how they can deliver the best possible experiences for their customers, to generate sales and improve retention. In this case, real-time API integrations into comparison websites.

Other areas of innovation are the ongoing migration to the cloud, which allows for the building of scalability and resilience in insurance carriers, as well as enabling technologies such as document ingestion, workflow automation, A.I., and payments technology delivering a better customer experience with a reduced Total Cost of Ownership for the enterprise.

First and foremost, insurance companies need to understand their customers and how they expect insurance interactions to be delivered. Following this, a technology strategy must be formed to enable them to deliver in an agile way. Being agile is significant because customers’ expectations evolve over time, and technology also changes. As a result, insurers need to understand their customers and be able to deploy relevant technologies in an appropriate time frame to meet demands.

Many insurance providers partner with innovative technology companies to deliver solutions that will support the needs of the end customer. By offering relevant payment checkout experiences, similar to those by large eCommerce platforms, insurers can increase their top line and keep more customers satisfied. Insurers can further reduce payment site costs by using external partners to manage integrations with the global payment ecosystem. This makes the configuration of payments more cost-effective and quicker than what existing IT integrations allow for. This technology can deliver a 90 percent saving on payment integration and configuration.

The advantages of technology in the insurance industry are clear. Technology enables insurers to improve coverage for customers, enhance customer experience, reduce costs and improve product-market fit. There are several new insurance business models being deployed, including embedded insurance, parametric insurance, and soon “open insurance,” which are all designed to make the customer experience more seamless and provide the right cover at the right time. When deployed in the right way, technology is a critical enabler for insurers to deliver to their customers and avoid becoming irrelevant capacity providers.

There are numerous opportunities for insurers to embrace innovation in the industry. The challenges with enterprise payments, however, are primarily transforming traditional IT systems, and maintaining multiple IT integrations with different payment technologies and providers. The impact is not only on top-line income and bottom-line costs, but inadequate payment capability also inhibits insurance innovation. Payments need to meet the needs of the modern consumer and the insurance product. These are the barriers preventing insurers from pursuing their digital transformation journeys. It is for these reasons that third-party innovative solutions prove valuable, enabling insurers to completely optimise their payment systems, for a fraction of the cost, resources, and time.

 

Banking

Emerging technology will power long-term sustainability within the UK banking industry 

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By Peter-Jan Van De Venn, VP Global Digital Banking at Hexaware Mobiquity.

 

Sustainability has been a big focus for the banking industry in recent years, with the issue becoming increasingly important for consumers. It’s no wonder that sustainability has become baked into the purposes of almost every bank, from Natwest to HSBC.

However, the economic uncertainty of the last year has led to many banks putting it on the back burner. Challenging market conditions have forced financial institutions to change their priorities to concentrate on protecting the bottom line. Our research found there’s been a significant drop in the number of UK banks saying that sustainability remains a key business strategy. 12 months ago it was a major priority for 100 per cent of banks, but now that number has shrunk to 60 percent.

Whilst it’s understandable that banks are feeling the pressure at the moment, there’s a risk that they will miss out if they hit the pause button. From cost savings brought by innovative digital products and services, to improved brand reputation and increased profitability, there are a lot of longer-term benefits they could be failing to unlock. So how can they keep moving forward?

Losing momentum

Emerging technology holds the key to their success, with the power to disrupt current behaviours and promote a more sustainable culture. Banks are already aware of this, with 76 percent using digital transformation to drive sustainability, but a lack of leadership has made it difficult to build momentum in the last 12 months. Currently just over half (54 percent) of banks have tasked an executive at board level with overseeing sustainability – way down from 83% just 12 months ago.

This lack of board authority means banks are struggling to engage the entire organisation to move ahead with sustainable initiatives. As a result, almost two-thirds of banks are seeing progress slow, admitting they are not actively taking steps to foster more sustainable behaviours throughout the organisation. Those that have taken their foot off the gas need to find a way to move forward again.

No time for standing still

Banks know that technology can drive sustainable behaviour. For instance, many of them are already encouraging their workforce to work remotely, as a way of reducing travel. This has two benefits – not only does it cut the costs of running physical offices at full capacity, but also reduces the bank’s carbon footprint. There has never been a better time to invest in technology to drive more sustainable behaviours.

New digital products and services can also extend the benefits beyond employees to encompass the wider customer base. A fair number of banks are already investing to make this happen. More than a third (35 percent) of banking organisations are using Machine Learning (ML), Artificial Intelligence (AI), cloud and analytics to make digital services more easily accessible. Investment in these technologies will be critical as the number of physical bank branches continues to decrease, with figures from Which? showing this is taking place at a rate of 54 branch closures each month.

Hitting environmental and social responsibility goals

Emerging technologies can also help banks keep pace with tightening ESG rules and regulations. Banks are faced with demands for increasingly granular reporting and transparency on ESG – demanding a new approach. In line, 41% of them are developing data visualisation tools to improve stakeholder engagement and understanding of ESG risks and opportunities, while 37% are using machine learning and artificial intelligence to identify and track ESG risks and opportunities across a wide range of data sources.

More than one in three are also using the blockchain to improve transparency and traceability in supply chains, and implementing digital tools and platforms to collect, analyse, and report ESG data and metrics in a standardised and consistent manner. All these applications of emerging technology will put banks on track to address global environmental challenges and unlock a greener future.

Long-term sustainability

As the economic pressures hopefully start to subside, increasing numbers of banks will start investigating how they can use emerging technologies to provide engaging experiences and value-added services for customers, to drive greater revenue and efficiencies.

Whilst banks are right to focus on their revenue under difficult trading conditions, it’s important they don’t miss out on the long-term benefits that sustainability can bring. To capitalise on this, banks must keep pushing the boundaries and invest in emerging innovations to drive more sustainable banking behaviours, benefiting the planet and driving great digital experiences for customers.

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Banking

The Future of Banking: Streamlined Cash Management for ATMs

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Gaetano Ziri, Innovation Manager, Auriga

 

“Maintaining free access to cash for the community demands robust strategies to mitigate the escalating costs incurred by banks and ATM operators in handling cash. A pivotal step in this direction is modernising cash management systems to foster efficiency and reduce operational costs.

Back in 2018, a report by McKinsey underscored the urgent need to overhaul the largely manual and disjointed systems relied upon by nearly half the banks worldwide for forecasting cash requirements at branches and ATMs. Despite the decrease in cash usage noted by the European Central Bank, the cost of managing cash has not abated, primarily due to surging labour costs.

To reconcile the demand for free access to cash with the requisite cost reductions, banks are increasingly turning towards tech-driven solutions in cash management that elevate service levels while driving down expenses.

The Complex Landscape of ATM Network Management

Operating a vast ATM network can be a double-edged sword for banks, simultaneously offering customer convenience and engendering considerable challenges, including substantial cash handling, management, transit and security costs. Each ATM embodies a multifaceted operation involving numerous cash transfer operatives, necessitating a coordinated strategy to forestall costly inefficiencies.

The remedy is a holistic, data-centric approach to streamline the management of intricate ATM networks and counter the escalating costs associated with cash access. The merits of such an approach, grounded in continuous data collection and analysis across ATM networks, encompass:

  • Strategic Planning: Leveraging real-time data to craft bespoke strategies for individual branches or regions, assuring optimal cash flow management and averting superfluous cash loading orders.
  • Operational Transparency: Facilitating stakeholders with instantaneous access to accounting and operational data relating to cash supply chains, thereby enabling timely interventions and adaptations.
  • Enhanced Customer Experience: Minimising ATM downtimes to guarantee uninterrupted cash access to customers, enhancing their banking experience.

Innovations in Cash Management: A Closer Look

So, how does this revolutionary cash management technology function? The answer lies in a series of sophisticated features that employ cutting-edge predictive analytics, automation, and data-driven decision-making:

  • Predictive Analysis: Forward-thinking solutions predict cash necessities of distinct units, offering precise demand and cash flow projections by considering variables such as seasonal fluctuations, holidays, and daily usage trends.
  • Automation and Monitoring: Swapping manual processes or basic mathematical functions with modern software solutions for cash management ushers in real-time monitoring and efficient intervention planning, which can potentially diminish order management costs by a significant margin, whilst improving precision and operational fluidity.
  • Optimised Cash Transit Management: Utilising predictive analytics to strategically plan cash restocks, thereby reducing the likelihood of ATMs depleting their cash reserves and improving customer satisfaction.
  • Data-Driven Decision Making: Availing a comprehensive dashboard to generate timely reports and monitor critical metrics facilitates strategic decision-making grounded in accurate data, substantially reducing residual cash stock in ATMs.

As the financial landscape evolves, banks and financial institutions are impelled to adapt and innovate. Traditional cash management approaches are increasingly becoming outdated, paving the way for modern, data-driven solutions. These not only embody a commitment to technological advancement but also signify a strategic movement towards future readiness.

Embracing such technologies promises streamlined operations, substantial cost reductions, and a superior customer experience, setting a new standard in ATM network management.”

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