By Martin Hartley, Group CCO of emagine.
We live in a consumer-centric world, so for financial services companies to remain competitive and be a top choice for customers, they must continue to prioritise the human element of the customer journey.
AI is facilitating the shift towards a more personalised journey, which not only allows firms to get to know their customers better, but it also boosts the trust between them too. The companies leading the way are the ones putting this personalisation at the forefront of innovation, whilst not neglecting the human behind the customer profile.
The power of AI
AI agents, chatbots, and virtual assistants are advancing at a rapid pace, with firms exploring ways to resolve increasingly complex customer issues without human intervention. With access to quality data, AI-powered customer service agents are developing the ability to handle more complex inquiries, reducing operational costs, and allowing employees to focus on more pressing tasks.
As financial services and other sectors rapidly adopt AI focussed solutions, there is one question that continues to arise: how important is the human element of customer service? Should direct human interaction still be a key ingredient of this process?
The answer is yes, in certain circumstances. While AI brings efficiency, personalisation, and cost savings, the irreplaceable value of human empathy and connection must remain just as important for customers.
I firmly believe that AI should not be seen as a replacement for human representatives but rather as a tool to complement their roles. A hybrid model where AI manages routine inquiries while humans handle complex and emotionally sensitive issues will likely emerge as the perfect solution in banking and beyond.
What are the perks of using AI for the customer?
Modern consumers demand speed and convenience – gone are the days of waiting in a phone queue for hours. AI enables firms to provide faster responses to queries and enhanced data ensures these responses are personalised enough to meet the individual’s immediate needs.
From instant payment processing to smart financial planning tools, AI is making banking more intuitive and user-friendly. Firms that place personalisation at the forefront of innovation are gaining customer trust and loyalty. Monzo is a great example of this as they have utilised AI to help customers with budgeting and tracking expenses, creating savings goals with ‘pots’, and increasing the opportunity to save. AI helps users make more informed financial choices with minimal effort.
In addition to making people more financially savvy, AI has given customers additional security. Fraud detection systems are constantly monitoring transactions and flagging suspicious activity immediately, reducing the risk of scams and increasing the level of confidence in customers.
What are the risks?
Although the benefits of AI in fintech are clear, the biggest limitation of AI is its inability to comprehend emotions or complex human concerns. Financial decisions often carry personal significance, whether a customer is experiencing fraud, securing a mortgage, dealing with debt or managing investments, it can be a stressful time for customers.
While chatbots and AI systems can offer quick solutions, customers often seek reassurance and emotional support that chatbots cannot provide. Over reliance on AI can lead to impersonal experiences and frustration amongst customers, leading to potential reputational damage. Fintech firms must ensure that human interaction remains available, combining technology with emotional intelligence to maintain trust and customer satisfaction.
What can we expect to see this year?
As fintech firms embrace AI and drive advancements in automation, those that prioritise a customer-centric approach will be the ones to thrive. To stay competitive, fintech companies must find the right balance between AI efficiency and offering human communication that conveys empathy and reassurance.
I believe we will see more firms adopting a hybrid model, where AI takes care of routine tasks while human experts handle emotionally sensitive or complex cases. By blending AI with human empathy, financial firms can deliver a positive customer journey, ensuring that technology enhances, rather than replaces, the human touch.
