1. What do you see as the key trends in the banking and insurance sectors by 2025? How will emerging technologies like AI and blockchain shape these industries?
Banking and insurance are critical pillars for the growth of any economy. The almost complete digitization of payments in India has been revolutionary especially post pandemic. Robustness of systems to enhance customer trust is very important to enhance trust in the system.
Both banking and insurance are deeply influenced by technology, with a strong focus on digitalization and improved customer experiences. AI is being used to drive automation and personalization in both sectors, making services more tailored and efficient. In banking, AI will enhance customer service through chatbots and personalized financial tools, while blockchain will improve security and reduce fraud.
In insurance, AI will speed up claims processing and help with better risk prediction, and blockchain will offer more transparency in policy management and claims. These technologies will make both industries more accessible, transparent, and efficient, ultimately benefiting customers and businesses alike.
2. With the rise of digital banking and fintech platforms, how do you think traditional banks and insurance companies will compete with new players? What strategies should establish firms adopt to stay relevant?
Building Trust is key to building a large franchise in Banking and Finance. With the rise of digital banking and fintech, traditional banks and insurance companies are embracing change to stay competitive. One needs to cater to the customer who is in ‘DIY’ mode, therefore UX becomes super important.
They should focus on upgrading their technology, offering more user-friendly digital services, and making processes faster and simpler for customers while keeping the customer experience at the center of decision making.
Partnering with fintech’s and other specialized agencies can help bring fresh innovations in their services. To remain relevant, established firms should invest in automation, AI, and data to provide personalized experiences. At the same time, they can leverage their trusted brand and strong customer relationships to stand out against newer players. The key is balancing innovation with experience and trust.
3. How can banks and insurance firms balance the use of automation and AI-driven services with the need for personalized, human interaction in customer service and relationship management?
Banks and insurance companies can strike a balance by using AI and automation for tasks like answering basic questions and processing claims, which saves time for both the customer and the company. For more complex or sensitive issues, human agents can step in to provide a personal touch and understanding. AI can also help by offering personalized recommendations based on customer data, while humans can handle the more emotional or detailed aspects of customer service. The goal is to combine the efficiency of technology with the care and empathy that only humans can provide.
4. With technologies like augmented reality (AR) and virtual reality (VR) beginning to find applications in financial services, how do you see these technologies enhancing customer experiences in banking or insurance by 2025?
AR and VR will improve customer experiences in banking and insurance. In banking, VR could let customers visit virtual branches or ATMs, making it feel more real. AR could help people understand financial data or property details better. In insurance, VR might explain policies or show different coverage options, helping customers decide more easily. These technologies will make services more interactive, engaging, and user-friendly, improving the overall experience.
5. As the adoption of digital and mobile banking accelerates, how do you think ad-supported models, such as ads within banking apps or insurance portals, might evolve in the next few years? What impact could this have on customer engagement and trust?
While companies will use communication properties for upsell / cross sell it is unlikely for them to use ad supported models both from a regulation and customer experience point of view. Aggregators are already using ad supported models for monetization.
6. Millennials and Gen Z are quickly becoming major players in financial decision-making. How can banks and insurance companies better cater to these generations’ needs, particularly in terms of transparency, trust, and personalized financial solutions?
Most consumers will accept money from anyone (taking a loan) but are little more careful when they park their savings. This has been demonstrated where a lot of the new age companies have offered higher deposit rates but not necessarily made a huge dent in terms of overall deposits. Customers seek a better price but also seek convenience, status, a long-term trusted experience. Financial institutions need to assess the segment which the customer belongs to first and then chart his customer experience accordingly.
Digitization and AI can enhance the experience but creating differential customer journeys and focusing on the customer experience is equally important.