With smart technological integration from Chatbots to IVR systems, the banking transformation over the decades can largely be seen through the lens of digitalisation. Mobile banking has become smarter and more efficient, transactions have become faster and more secure, and customers have become more reliable and time-sensitive. Despite all the advancements, when it comes to money and banks, it still relies on human experience rather than machine experience.
Therefore, it is not only being digitally advanced. The future of banking depends upon “frontline intelligence”.
Banking cannot be only about mobile apps or backend systems; the real shift lies in how the technology can empower the people closest to the customer – branch executives, brand managers, cashiers, relationship managers, sales teams, and customer support executives. Generally, banks do not lose customers based on the complexity of their operating environment (infrastructure); they lose customers based on the time they invest in customer moments.
- Was the issue resolved promptly?
- Did the representative have an understanding of the customer’s needs?
- Were all channels used in a seamless cross-channel manner?
- Was the institution viewed as accessible and trustworthy?
These customer “moments” are all generated at the frontline.
Over the years, frontline operations have faced challenges of delayed access to information, fragmented systems, multiple-window interactions, a lack of procedural knowledge, and operational inefficiency. While core banking systems have evolved fairly, frontline functions and experiences have historically been relatively the same (operationally rigid).
Today, the gap is filled with frontline intelligence. Technology is improving the speed, knowledge, and ability of banking agents (frontline) to respond in real time. Banking agents are transitioning from being just an intermediary service provider to being an intelligent ally by utilising data, automation and contextual intelligence.
This transformation is especially important in Emerging Markets (EMs), where human-based banking remains prevalent despite rapid digital adoption.
Shift From Transaction-Centric Service Models to Experience-Centric Ecosystems
The banking industry is beginning to move away from a transaction-based service delivery model (i.e. just facilitating transactions) toward one based on delivering total customer experiences. They compare every digital experience they have had with others – whether in e-commerce, mobility, hospitality, or consumer technology.
Several trends that will shape the future of banking include:
- Use of assisted digital onboarding, which reduces the friction that exists for acquiring new customers
- Leveraging Artificial Intelligence (AI) to improve the quality of customer interactions
- Unified communication platforms that enable customers to have a consistent experience across all channels
- Automated self-service solutions that shorten wait times for customers
- Real-time analytics that enable banking agents to provide more personalised customer engagement
- Remote advisory services that provide customers with access to banking advice through video channels
The most effective category playing a crucial role in frontline operations is the emergence of 2-in-1 tablets.
Unlike the traditional computer-based setup, 2-in-1 devices like IRA combine mobility, collaboration, and computing flexibility into a single platform.
What does it mean? It simply means the frontline staff can easily transition from transactional interactions to consultative engagement without operational interruptions. Whereas, for customers, it creates a more seamless and responsive banking experience.
The Phygitalization of Banking Services
One of the major advancements in the banking sector is the rise of phygital banking – a combination of banking services delivered through both physical and digital channels.
There are many ways customers can interact with their banks when they want to start a service; whether that’s beginning the request online with a website, following through with a call centre representative, or visiting a local bank branch to complete the request or make an inquiry, customers expect that each touchpoint will flow together throughout the entire process without any delays or interruptions. This is where the use of technology, especially 2-in-1 tablets at the branch level, becomes increasingly important.
Rather than functioning solely as transaction centres, branches are becoming advisory, engagement, and trust-building environments supported by connected technologies.
AI Will Augment, Not Replace, Human Banking
Automation and cost-cutting are common ways AI gets discussed in banking – though both are valid benefits, the larger, more meaningful opportunity lies outside of those two benefits.
AI can provide great value by enhancing decisions made at the frontlines of banks. With appropriately designed systems, AI will give bank frontline teams:
- access to contextual information for recommendations,
- a reduction of time spent on redundant administrative tasks,
- the ability to quickly identify customer intent,
- a large improvement in compliance accuracy,
- and the delivery of more proactive service to their clients.
Nevertheless, banking is inherently based on relationships. As customers trust algorithms for successful transactional efficiencies, they will still rely on people for confidence during critical financial decisions.
Banks that can integrate technology-driven intelligence with human-generated confidence will be the ones that succeed. Banking will not be fully automated in the future; rather, it will be augmented by technology to support human capabilities instead of taking their place. It is on us to decide how we integrate these technologies with human intelligence for success rather than considering them as a threat.
Service Excellence Is Becoming a Technology Strategy
Now, what matters is not simply whether banks are adopting the latest technologies, but also whether those technologies enhance the bank’s overall ability to provide timely and accessible service, and whether the customers trust the institution through those transactions.
The AI Multilingual agent is one of the strongest innovations that can make the customers from TIER II and TIER III cities feel like having a conversation with someone they know. The literacy here does not rely on the customer; in fact, it relies on banks that need to adapt these AI multilingual agents to make every customer their happy customer.
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Ultimately, customers do not have a “bank” experience via architectural drawings or transformation roadmaps. They have that experience multiple times via every bank interaction.
Views expressed by: Milind Shah, Founder & CEO, WISHTEL
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