The finance industry is under constant pressure to continuously innovate and deliver faster. Added to that is the underlying emphasis to drive a digital-first
experience, which has really shaped technological transformation across financial institutions.
Efficiency has become the benchmark of success, but the focus on speed and automation risks stripping away the human qualities that remain crucial to a successful
customer experience.
People are putting more than their money into an account when they choose a bank or credit union; they’re ultimately putting their trust into that financial
institution, too. Trust will always be one of the most valuable assets of the customer relationship—but it’s hard-won and often too easily lost. That’s why, in the race to maximize efficiency, empathy can’t be forgotten.
Why Empathy is a Non-Negotiable in a Digital-First Era
Empathy and trust go hand-in-hand. When financial institutions demonstrate empathy towards their customers, they’re demonstrating that they view and respect
them as individuals with their own needs and experiences.
As wealth is exchanged across generations, and younger account holders emerge as the biggest chunk of financial institutions’ customer base, empathy will
continue to be pivotal. Yes, younger generations like Millennials and Gen Z are described as ‘digital natives,’ but they still value the human touch. In fact, recent insights from EY show that
83%
of Gen Z prefer digital-first financial services but also seek human interaction for major decisions.
Now, it’s the norm for banks and other financial institutions to provide digital-first services. But competitive advantage can’t lean on speed and efficiency
alone. The institutions that stand out among the competition are the ones that make their digital experiences still feel innately human. Cutting-edge APIs and features appeal in the short term, but if people don’t feel seen and heard, their long-term loyalty
is likely to take a hit. And the customers themselves have spoken: 9
out of 10 value experience over product, with trust a core driver of that.
Embedding Empathy into the Experience
Being empathetic means meeting people where they’re at. Circumstances change, and not every scenario can be perfectly replicated in a cookie-cutter method,
especially during big life events, like the loss of a loved one or buying their first house. The last thing customers will want is to be met with an AI-powered bot as they’re trying to navigate the inheritance process or set up their first mortgage. Human
touchpoints need to be embedded in the customer experience in the moments that matter most.
Empathy is actually scalable, and a hybrid approach is the best way to achieve this. What this means is embedding automated workflows, but ensuring there
are opportunities for a person to easily step in when needed or most appropriate. It’s about moving from a reactive to a proactive customer care mindset.
Ultimately, the digital UX should be designed to reduce stress and with the customer in mind. The very basic first step is making platforms easy to navigate,
meaning critical information, like contact information, is quickly accessible, instructions are clear, and interfaces are intuitive. Chatbots are great for handling routine, low-stakes queries, like branch opening hours or an update on a credit card delivery.
The next step is to incorporate empathetic language across digital services. Tone of voice matters, and can make or break how a customer interacts with a
brand. Blunt, detached language can make an individual feel isolated from their experience. For instance, including a note of compassion at the start of an online inheritance registration process can make all the difference for a grieving inheritor.
Empathy also means recognizing that not everyone has the same background and financial literacy. Ensure language is accessible and understandable for everyone:
don’t overcomplicate messages and key information with jargon-heavy writing.
Also, make it clear across the communications that there’s a team behind the technology, ready to step in and help. Balancing automation with the human touch
is where a lot of financial institutions miss the mark. There are some moments where a person, not a bot, needs to step in. Most people want options when it comes to their digital experiences, and this also means being able to speak to a person when needed.
Banks and financial institutions therefore need to make it easy for customers to escalate their queries to a human representative.
However, it’s worth noting that automating condolence messages with AI-powered tools does more harm than good. When integrating automation, financial institutions
need to read the room. Someone who’s dealing with the loss of a close relative will not want to receive an AI-generated condolence email when they start the inheritance process.
At the same time, people aren’t perfect either, which is why staff need to be well-versed in what to say and when, and how to nurture that human connection
with customers. Words and tone carry huge weight when it comes to empathy, and someone dealing with their deceased relative’s accounts won’t appreciate an upbeat and overly happy representative. They may also find certain words like ‘death’ particularly triggering,
and client-facing staff to be mindful of those nuances.
Empathy and efficiency are equally important in a digital-first financial landscape. The providers who get the two right are the ones who won’t just win
new customers, but ensure their existing ones keep coming back.
