Voice-activated devices are becoming more common in our global society. Over 34 million smart speaker devices were sold in the United States in 2018, and the sales figures for 2019 are similar. As 5G networks begin to rise around the world, this upgrade could create an exciting new trend for the financial services industry.
Voice banking is not a new technology. Experts have been questioning when institutions would embrace this approach since 2017. With new network speeds coming to the average consumer, platform integration with vocal touchpoints could soon be our future reality.
What will it take for voice banking to be a prominent force in the future?
Voice Banking Relies on Artificial Intelligence Development
Communication is a pain point for the average customer in the financial services industry. It often involves long wait times and a frustrating call-in or login process. According to Deltec Bank, Bahamas – “The fintech sector’s development of artificial intelligence and interactive voice banking technology can change this experience for the better.” The goal is to improve the overall customer experience while creating better data security and internal processes.
Several case studies from the industry prove that there is a lot of potential to consider with this approach.
1. Erica: Bank of America
Erica allows customers to interact with text, gesture, or voice to create a seamless banking experience. Over 6 million users are already using this AI-empowered tool to help them with their account needs. The learning curve of this voice banking approach makes it potentially possible to list specific transactions, transfer money to specific places, or analyze financial habits to make better decisions.
2. Fraud Prevention: Pelican
The problem with artificial intelligence is that data compromises are still possible. What would happen if someone recorded your voice and then used deepfake software to manipulate it to say what a voice banking app wanted to hear?
With the global cost of fraud topping $4 trillion annually, AI can help financial institutions reduce the risk of loss. Startups like Pelican work to improve the security profile behind voice banking tech so that there are fewer threats to the institution and each customer.
3. Multiple Platforms: U.S. Bank
U.S. Bank recently became the first institution to offer services on all three major voice platforms: Siri, Google Home, and Amazon Alexa. The institution recognizes that the uses for this interaction are still in the beginning stages, but the plan is also to integrate and broaden this approach to the other future digital efforts. Customers can check their account balances with this tech, while Google Home and Alexa can offer due dates and recent transactions.
Alexa can help customers pay their U.S. Bank credit card from an account within the institution.
Who Will Embrace Voice Banking in the Future?
Voice banking may not be a priority today, but these case studies also show that customers see it as a potential benefit in the future.
The financial services industry has large digital ambitions. Voice banking is only the beginning of what might become available in the next decade.
As this tech matures, customers will come out as winners because the availability of multiple user pathways can help them make better financial decisions.
Disclaimer: The author of this text, Robin Trehan, has an undergraduate degree in Economics, Masters in international business and finance and an MBA in electronic business. Trehan is Senior VP at Deltec International www.deltecbank.com. The views, thoughts, and opinions expressed in this text are solely the views of the author, and not necessarily reflecting the views of Deltec International Group, its subsidiaries and/or employees.
About Deltec Bank
Headquartered in The Bahamas, Deltec is an independent financial services group that delivers bespoke solutions to meet clients’ unique needs. The Deltec group of companies includes Deltec Bank & Trust Limited, Deltec Fund Services Limited, and Deltec Investment Advisers Limited, Deltec Securities Ltd. and Long Cay Captive Management.