Financial Decisions

Help your clients make better financial decisions using clienteling

by Jean Shin, Director Strategy and Content, tyntec

Now more than ever, digital transformation has become central for banks. Fintech disruptors are challenging existing business models, retail banking has pivoted away from in-branch customer interactions, and the introduction of regulations such as PSD2 and GDPR have redefined internal processes for good. 

So far, mobile applications have been the vehicle for this shift, but, according to a 2019 study commissioned by ING, consumer adoption of mobile banking has stalled. As a result, banks are looking for new ways to deliver their services to customers.

Most customers are happy to check online statements and conduct transactions from their smartphone, but there are still plenty of people who want a more personal service from their bank. According to Deloitte, 29% of consumers have never used a banking app, while just 30% prefer to use online banking or a mobile application for complex or advisory services. 

We believe these underserved customers are the next frontier in the banking industry’s digital transformation journey.

More straightforward human banking

It’s now possible for banks to provide services using WhatsApp Business. 

By integrating the world’s most popular chat app via an API. banks can empower customers to get automated assistance directly on WhatsApp when they want to check account balances, view statements, temporarily block cards, or even transfer money to known beneficiaries in some markets. 

All of this is possible without customers ever needing to go into a physical branch, dial a phone number and wait on hold, or remember the login details for their online access. They can also communicate directly with customer service representatives if they encounter any issues.

Building loyalty and trust

Making communication seamless is key to improving customer satisfaction in banking. According to research by Microsoft, a third of banking customers report that poor customer service is the primary reason they would leave their bank, and 80% of customers who changed banks said they would have stayed if their problem had been resolved the first time they got in touch.

Setting up a verified Business Profile on WhatsApp means that customers can trust they’re talking directly with their bank when they get in touch. A green verification badge shows that the account is official and provides additional contact information, such as a hotline phone number, website address, and other company details. It means that customers can feel free to ask questions or raise any concerns and the right person is on the other end to address them.

Feeling secure in financial conversations

Security remains a crucial obstacle for users to embrace digital banking. According to Deloitte, 61% of people who don’t regularly use mobile devices for financial activities do so because of security and privacy issues.

The WhatsApp Business API helps address these concerns with end-to-end encryption, trusted by over 2 billion WhatsApp users around the world.  

Official WhatsApp Business Solution providers like tyntec can help banks meet their compliance requirements like GDPR (General Data Protection Regulation) by default. For the European market, it’s particularly important to work with a solution provider that has data centres in Europe and supports secure data processing and transmission so that banks and their customers can be sure they’re communicating privately.

Improving customer engagement

When customers receive a transaction alert through WhatsApp, they know right away that it’s coming from their bank thanks to the verification process. This feature is particularly useful for banks that need to send transaction alerts or double-check potentially fraudulent activity, where a speedy and seamless interaction is necessary to meet customer expectations.

Establishing trust through conventional channels also encourages customers to get in touch for activities they may ordinarily avoid due to inconvenient timing and so on. For example, a customer who just checked her account balance might want to invest some of the fund in a new savings account. On WhatsApp, it’s so easy for her to simply start a conversation and ask for investment options and advice.

With end-to-end encryption and full GDPR compliance, people can enjoy the security and privacy of mobile banking directly from a chat app they love using everyday. The race is on for banks to join the conversation about how they can better serve their customers through chat.