AI Member Service Solutions: Elevating the User Experience

Although a significant amount of member service occurs through a financial institution’s contact center, it’s important to consider that the member journey is far more expansive. There are countless opportunities to build trust and loyalty even when a live agent isn’t present. Institutions looking to improve service must consider every touchpoint with an eye for streamlining, improving and enriching the member experience; after all, 92% of respondents in a Motley Fool survey indicated that quality member service is one of the most important factors when choosing a bank, tied only with security and fraud protection.

That’s just one reason why many financial organizations are turning to artificial intelligence member service solutions – not as a replacement for the member service team but as an extension of its resources.

The Rise of Generative and Conversational AI in the Banking Industry

Although speed and convenience will always be hallmarks of member satisfaction, financial services experts have noticed a shift in expectations. For example, retail bank members now expect their financial partners to help them during challenging times. In fact, 63% of banking customers say they won’t switch banks, and 78% say they’ll do more business with a particular bank when these services are offered, according to a J.D. Power survey. Similarly, modern members across all different kinds of financial institutions also expect increased digitization, personalization and accessibility, particularly when it comes to omnichannel experiences – and they want the option to choose between member service AI and a live support agent when necessary.

To maintain a competitive advantage in this fast-changing environment, financial institutions are responding to member needs with a careful balance of human connection and artificial intelligence. This balance often includes generative AI and conversational AI solutions – tools that add a realistic touch to automated conversations without draining resources from a member service agent.

Use cases vary widely. Organizations may have capabilities like an AI-powered chatbot, self-service knowledge base and virtual assistant. These solutions may be member- or agent-facing, emphasizing the industry’s interest in leveraging AI technology to solve internal inefficiencies as well as external frustrations.

What’s Driving the Use of AI in Financial Services?

There are a variety of factors impacting the popularity of AI in financial services, including:

• Competition: The top 10 banks in the U.S. all use some kind of AI member service software, particularly chatbot or virtual agent solutions, according to the CFPB. When all of the competition is embracing digital transformation, institutions that fall behind could be seen as less resourceful, reliable or desirable.
• Cost: Depending on its utilization, an AI application can save thousands of dollars – and it can pay for itself with outcomes like increased lead generation and employee efficiency boosts.
• Convenience: Members and agents alike are growing more used to having AI at their fingertips. This kind of convenience is now an expectation in any member experience or internal workflow.
• Simplicity: An AI tool can be trained and customized to your unique needs, making it a simple but efficient solution to a variety of disparate issues. Plus, the best AI is user-friendly and intuitive, eliminating the need for extended training sessions.
• Speed: Solutions like member service chatbots can address queries and requests in seconds. That means members will see reduced wait times, agents will feel less call overload, and the credit union can address larger problems in a more timely manner.

Other pressures contributing to the need to adapt include an uncertain market, economic and global disruption, fast-moving technology and – of course – changing member behavior.

The Benefits of AI Member Service for Credit Unions

An AI system does far more than solve member issues. It delivers benefits for entire relationships, helping members connect more fully to your offerings, reputation and, when necessary, your agents. Here are just a few things you can do with AI-powered member service:

Deliver Human-Like Responses

Inappropriate or unhelpful automated responses can undermine member loyalty and trust. However, human-like responses based on an institutional knowledge base and a contextual understanding of previous interactions can answer member questions without delay or frustration. That means you won’t have to sacrifice intuitive conversations for speed and convenience.

Improve Service Accessibility

Members often expect anytime, anywhere service from their financial institution. An AI application helps deliver this 24/7 support, enabling you to answer 100% of after-hours calls and chats – all without a constant drain on your member service team or other resources.

Increase Productivity

When agents don’t have to answer quick questions or complete repetitive tasks, they can focus more of their time, effort and talent on higher-value responsibilities. This doesn’t just boost productivity, it also improves morale and employee satisfaction.

Improve Cross- and Up-Selling

An existing member is a rich opportunity. Intelligent AI can track member intent and identify cross- or up-selling opportunities that benefit the member and your bottom line. The result is a system that anticipates and responds to needs in a way that seems helpful rather than sales-driven.

How Credit Unions Are Using AI to Improve the Member Experience

Remember that a good AI member service solution doesn’t have to be limited to the call center. You can enhance user experiences across your digital channels with various approaches, solutions and frameworks depending on your needs. Examples include:

Putting Member Needs First

Your end user will have needs, questions and responsibilities throughout the member journey. By prioritizing their perspective when implementing AI tools, you’ll build member service into everything you do. For example, solutions like conversational searching, AI-assisted loan applications, and automated credit score monitoring are all repetitive for your agents but crucial for your members, so it makes sense to let end users handle these tasks themselves.

At the same time, financial institutions still provide easy, stress-free ways to contact a live member care agent. An Ipsos poll conducted on behalf of Wells Fargo showed that members note a few significant benefits to human representatives:

• 62% said human agents understand the member’s emotions;
• 58% noted an improved ability to handle complex questions;
• 46% said human agents can answer questions more accurately;
• 45% felt more peace of mind when talking to live representatives; and
• 38% noted a stronger feeling of control over their own service experience.

Bridging the Tech Gap

Implementing a digital transformation without proper planning can leave a tech gap, creating a disjointed experience for members moving from one support channel to another. Financial institutions recognize this gap and are leveraging AI to close it – for example, by helping end users transition smoothly from a virtual assistant conversation to a live chat with an agent who has been automatically provided with all the necessary context.

Improving Financial Literacy

Having immediate access to a knowledge base or other AI member service tool helps end users become more familiar with their needs and the required solutions. This, in turn, can help institutions improve financial literacy by encouraging members to explore resources and answer questions on their own.

Detecting Fraudulent Activity

Although rules-based, automated fraud detection systems can result in false positives that cost financial institutions and their members time and money, AI is in a perfect position to help. AI systems can consider many factors and learn from each interaction, creating a smarter detection solution over time.

The future of financial customer service is brimming with AI-powered possibilities. The question isn’t if you’ll embrace it, but how. So, step into the innovation lab to explore the tools, and craft experiences that delight your members and empower your staff.

Karan Kashyap is CEO and Co-Founder for the Boston-based conversational AI company Posh.