Banking on Digital Growth
Banking on Digital Growth

Episode · 6 months ago

210) #InsideDigitalGrowth: The Exponential Growth Curve of Voice Banking


With the rise of mobile banking, voice banking has taken a backseat. Many banks still use an outdated touch-tone model for their customers’ voice banking needs.

Yet, I believe voice banking is primed to take a great leap forward in optimizing customer engagement. We’ve seen tremendous strides in AI voice recognition technology over the last decade. Soon, your voice banking experience may be no different than talking with a teller.

In this episode of our Inside Digital Growth series, I dive into the digital mailbag and answer several burning questions you have about voice banking.

Join us as we discuss:

- What voice banking means for FIs and how it can help them grow (1:25)

- Concerns you should think about centered around voice banking (9:02)

- How voice banking aligns with KYC (‘Know Your Customer’) (13:42)

Check out these resources we mentioned during the podcast:

- Text your questions to James Robert at 415-579-3002

- James Robert Lay

You can find this interview and many more by subscribing to Banking on Digital Growth on Apple Podcasts, on Spotify, or here.

Listening on a desktop & can’t see the links? Just search for Banking on Digital Growth in your favorite podcast player.

You're listening to banking on digital growth with James Robert Lay, a podcast that empowers financial brand, marketing, sales and leadership teams to maximize their digital growth potential by generating ten times more loans and deposits. Today's episode as part of the inside digital growth series, where James Robert shares answers to some of the biggest digital marketing and sales questions he gets from the digital growth community. Have a question you want to get answers to on a future episode? visit www dot go ask jr dot Com to submit your question today. Now let's go inside digital growth. Greetings in Hello, I am James Robert Lay and welcome to episode to ten of the banking on digital growth podcast. Today's episode is part of the inside digital growth series where I James Robert Lay, your digital anthropologists, commit to continue to coach and guide you, your financial brand, your Fintech, along your digital growth journey, as you commit to guide people in the communities that you serve beyond financial stress towards a bigger, better and brighter future. In today's episode of inside digital growth, we are diving into the proverbial podcast Inbox, where my team has pulled together another set of really good questions that have been asked around voice banking. But before we get too far, if you have a question that you'd like to gain clarity around, text your question to four one, five, five, seven nine, three, zero zero two and my team will make sure that it gets answered on an upcoming podcast episode. Now let's go ahead and and jump into today's questions, framed around how your financial brand, how your Fintech, can maximize your future digital growth potential through voice banking. To begin, a CEO of a Community Bank ask what does voice banking mean for community banks and for credit unions and how can it help us grow? Well, simplified voice banking. The way I look at voice banking is that it is nothing more than another engagement channel for customers at banks, for members at credit unions, to connect and engage with their financial brand. However, as it stands today, our research has found voice banking, the way that voice banking is currently being positioned for many banks and for many credit unions is through the old world model of calling into an automated system with a touch tone phone, and we've found this through our research and through our digital secret shopping studies. When we'RE WORKING WITH ORGANIZATIONS TO GAIN clarity into how they're positioning products through their website. Now, when you think about a touch tone phone and voice bank ing, what does that...

...even mean in today's modern world? What is a touch tone phone? I actually asked my kids that question and they had no idea of granted, my kids are part of of what we're we're now framing as Jin C or generation Covid, but if you go up to Jin Z and ask them what a touch tone phone is, there probably is going to be some confusion there as well. So it's clear that the verbiage published on many financial brand websites even today around the idea of voice banking was simply copy and pasted from brochures that were printed back in. Voice Banking, though, as I see it, going forward into the future, will continue to expand on the what I would say is more of the traditional and the transactional nature of voice. It will expand and beyond that to become more conversational through smart speakers like Google's assistant or Amazon's Alexa, as well as mobile devices running, you know, like the iphone running Siri. So that brings us to our next question from a community bank chief experience officer, who asked is voice banking the next big thing or is it just simply an extension of mobile and computer devices? I have never seen voice banking to be the next big thing. It gets a lot of hype in the trades and publications because it's it's something to hype up. I've never seen it that way, though. I just see voice banking as the next thing, especially with the continued rise of smart speakers of voice assistance, once again going with voice banking, going beyond the transactional nature of how historically voice banking has operated, through the world of touchdown phones, to become once again more conversational. You know, when we think about how far we've come um through the use of smart speakers and voice assistants, we need to be aware of the fact that we've been talking to our phone for over a decade and not talking to someone else on the other side. We've been literally talking to our phone for over a decade as Siri came out, going all the way back to February of twenty ten now that might have been odd for many of us at first, but what was odd has become commonplace as the daily interaction with digital devices like phones and smart speakers, and smart speakers or even getting installed in cars. Now, especially for Gen Z, who grew up in a truly digital age, walking to a device conversationally speaking, that is... normal. And then, once again, there's the generation after that. There's Gen C, those kids who have grown up in the COVID error like mine. I'm watching and I'm observing how they interact with devices technology, whether it be tablet or phone or speaker, how they search for information. They don't really use keyboards, which over the next decade, I predict that will probably see a continued demise of the keyboard as an input function. Not In all situations. That will still be time for keyboard use, but I'm predicting we'll see more conversations happening with devices, with phones, with tablets, with smart speakers, and that's why it's always important to look at at at consumer trends outside of banking, because when we look at what's going on outside of banking, from what's trending, we can bring those insights into banking, into financial services, to guide future decisions for optimizing consumer or member engagement. For example, Google reports that twenty seven the entire online. Global population is using voice search on mobile devices, and that of adults use voice search at least once per day. Now that numbers are going to continue to grow over the years to come. Because why is this important? Voice and mobile are highly connected, highly integrated functions. An adobe analytic study foul that the most common voice searches on smart speakers or number one, asking for music, number two getting the weather forecast, number three asking fun questions, which my kids do all the time, number four online search, number five news and then number six asking directions, which makes a lot of sense as to why that would come in last, because if we're having a conversation with a smart speaker at home, probably aren't going to be asking many directions there, but with smart speakers getting installed in cars, we'll see more and more of that. So the the location of the smart speaker device will impact the conversations of the questions being asked. Now consider this. It doesn't matter if it's music or the weather or the questions, or online search or news or asking for directions. These are all transactional questions, if you will, and essentially, right now,... it stands, in the present moment, voice banking is what the a T M was mine, is getting cash out and still is, but it is through AI and through automation. That is what will continue to transform the transaction of voice banking to be more transformative, to be more conversational over the next decade. Next question is from a marketing VP. They write in an ask what are the biggest concerns we should be thinking about around voice banking? The biggest concern, I'd say, is is not necessarily the platform or an APP itself, but it's more philosophical in that with the voice banking there and that just a voice banking but we'll just call them smart speakers devices. There's the potential invasion of privacy because smart speakers and voice assistants on phones or in a always on, always listening state, and so there's some questions that we must consider. For example, how might what is picked up or shared with a voice banking APP on a Smart Speaker? How might those conversations be used by a smart device, because that's data that's getting collected. So, for example, you know if you're getting your transactions read back to your your top five most recent transactions or top ten most recent transactions. Is it possible for a smart device to pick up on where those transactions might be and then use that information to serve ads to going forward into the future. I know that there's, for example, a paranoia from some people when it comes to facebook. Has facebook been listening to them, because magically they'll be ads that show up based upon a conversation? Now, facebook of course denies this, but these are the questions. I think these are the concerns around privacy and data that will really impact smart speaker voice banking going forward into the future. Digital growth is a journey from good to great, but sometimes this journey can feel confusing, frustrating and overwhelming. The good news is you don't have to take this journey alone, because now you can join a community of growth minded marketing and sales lead ers from financial brands and fin techs who are all learning,...

...collaborating and growing together. VISIT DIGITAL GROWTH DOT com slash insider to learn more about how you can join the digital growth insider community to maximize your future digital growth potential. Now back to the show. Let's move on to the next question before we get too far off into tinfoil hat territory. As a credit and marketing director asked, what are the most obvious opportunities for voice banking when it comes to consumer interaction as it stands today. Well, the majority of consumers are using voice banking to track, to check transactional data, account balances, most recent transaction Um. There are more advanced use cases now being deployed, Um, paying bills, moving money, but those are still transactional and nature, and that's why I say one of the greatest opportunities looking ahead to the future of voice banking is, in conjunction with Ai, to provide proactive guidance based upon the insights of a unique individual and their their personal situation, their goals, their transaction. And the only way that that is going to become a reality is applying voice banking as a key growth opportunity within an organization to put the resources behind it to build out the AI models through, say, core data. Another good question comes from the VP of I T at a community bank, who wonders, how does Voice Banking Align with K Y C? And I'm glad you're thinking about this. K K Y cly comes down to three things. With K Y C it's you know, it's something that you have like a debit card. It could be something that you know, like a password, and it could be something that you are, Um, like a fingerprint or your face, your eyes or your voice. Now, the first two methods, something you have in, something you know, have been the primary default for identification over the past few decades. Even with traditional voice banking, calling in on a touchtone phone, someone would self identify through M F A or multi factor authentication using pin. That played a part, as K Y C authentication. But then if we look at going forward, when you have like smart speakers and different devices, other fact can...

...come into play here that are unique to the individual. Obviously there's voice, but then there's location, there's behavior. Um, because I know some of the concerns are, uh, can someone's voice be replicated to to log in? Will you? You Cross reference that with a pen and you're you're then taking into account a couple of those different elements I mentioned before. Something you know, like a password, something you are, like voice recognition, and it's really only recently face, voice and even fingers and eyes are being used to identify people. Mobile adoption has played a key role in biometric verification, even at an airport. Now, Um, I'm a clear member and I'm verified to fly clear with my eyes and with my fingerprints, and and when it comes to banking, a phyco consumer digital banking study found, quote, consumers are becoming more trusting of using physical and behavioral biometrics to secure their financial accounts. As say, they would be happy for their bank to analyze behavioral biometrics. So voice biometrics, essentially, or a voice print unique to each person, does have the potential to transform the verification experience from what was traditionally who you are to where I even see the opportunity to be identified how you are or how are you, because you can tailor a voice baking experience based upon how someone's self identifies, around their feelings an emotions. So not only are you identifying identity through voice, but based upon questions being asked, you can how how are you doing today, and then, based upon that, Taylor the voice banking experience accordingly to a person's unique feelings and emotions. Once again, I mentioned this before about the possibility of biometrics being hacked Um in in in February, forrest or released a report stating, quote, modern voice biometric solutions resist replay attacks and have improved in accuracy and a performance in the past five years, making them well suited for Call Center security and fraud management use cases. End Quote. So the whole point is the security side of voice banking will continue to improve in the coming years and AI is going to help facilitate a lot of that progress. We have one more question before we wrap up today's the thinking framed around voice banking as a path forward to maximize...

...the future growth for financial brands and Fintech, and this is from a Fintech CEO who asked. Do customers consider voice banking to be too invasive when it comes to their banking activity? are their barriers to adoption that we must consider? Voice banking does create what I call the digital dilemma, and the Digital Lemma is really where we're gonna have to have a lot of serious conversations, a lot of serious thinking done around data privacy, because data privacy is going to be central to the adoption and usage of voice banking. Yes, people are viewing voice as a convenient and easy way to interact with different devices, whether it be phone or smart speaker. We see that looking at the patterns and trends of of people and outside of the bank space. But once again, these historically up to this point have all tended and trended to be transactional interactions, searches for music or whether or direction. The question is going to be will people trust voice banking to hit some type of critical mass adoption? It's still too early to tell. Um Up to this point adoption for voice banking has been slow, but I want to provide some caution here. Don't let the slow adoption of voice banking up to this point fool you into thinking that there's not the potential for a rapid expansion and mass adoption over the next five to ten years where voice banking becomes the norm, perhaps even the primary engagement channel, replacing traditional mobile banking APPs. That that that is the current cultural norm when it comes to engaging with a financial brand, because if we look back in time, all transformational technologies tend to have an initial slow adoption rate before they hit an exponential growth curve, and that's why I predict we'll see this happen with voice banking. It's just not there yet. Maybe is that horizon line between and is when voice banking has the potential to replace traditional mobile banking APPs as they stand today. Just think where online banking was back in Um or where mobile banking was back in two thousand nine. I think we're gonna look back to this conversation in and see voys banking as being a p Mary, if not the leading, engagement channel for financial brands and for...

...fin techs going forward into the future. So it'll be fun to make a note to come back and visit this conversation to see how far we've come in progress around voice banking end of the decade. As always, these mailbag episodes are a tremendous amount of fun to do some critical thinking and critical writing around. I always appreciate the questions that we get from you, the dear listener, because they helped me understand what you're thinking about and then we can tailor our podcast are insights that we're sharing accordingly to empower you, to guide you forward on your own digital growth journeys. So if you're thinking about a particular digital marketing or a sells or a leadership question that you'd like to gain some clarity and site, text that question right now to four, one, five, five, seven nine, three, zero zero two, and I do in fact look forward to answering it for you on an upcoming banking on digital growth podcast episode. Until then and as always, be well, do good and bank your vet. Thank you for listening to another episode of banking on digital growth with James Robert Lay. To get even more practical and proven insights, along with coaching and guidance, visit digital growth dot com slash insider to join a community of growth minded marketing and sales leaders from financial brands and fin techs. Until next time, be well and do good.

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