(London, UK): AI chatbots and Large Language Models (LLMs) such as ChatGPT have become commonplace in recent years to answer queries, whether that’s how to write a persuasive email or to request a replacement for a stolen card.  According to Auriemma Group’s latest UK Cardbeat study, credit cardholders tend to be comfortable using AI chatbots to carry out basic tasks with their card issuer, but express skepticism when faced with more complex servicing needs.

For some time, AI Chatbots have been a key priority for card issuers to deliver a more streamlined customer service experience. However, through research and Roundtable discussions, Auriemma has found that the banks are shifting their focus towards AI development and innovation to support more efficient behind-the-scenes operations.

The complexity and difficulty of delivering a positive customer journey could be driving much of this shift. Auriemma Group’s latest UK Cardbeat study found that 65% of credit cardholders feel that AI chatbots often provide irrelevant or unhelpful responses. And what’s more, 57% said they regularly need to speak with a live representative following an AI-initiated customer service interaction.

Cardholders appear to be doubtful that chatbots can meet their needs, as only 36% say they wish their primary bank invested more heavily into chatbots, and just 26% feel chatbots are generally able to fully resolve issues.

While consumers believe AI chatbots still have much to improve, banks are identifying opportunities for AI to transform their business operationally. Members of Auriemma Group’s UK Roundtables recently shared they are leveraging or developing AI tools to create new efficiencies across Fraud, Disputes, Complaints, Customer Service and Collections Departments.

In fraud, current activities include using AI to score fraud cases and designing unique fraud warnings for customers. Firms are hoping AI can soon add randomness to fraud questioning when collecting personal customer data during the identification and verification (ID&V) process. A key initiative in development is writing a final response letter for customers who have submitted a complaint. Auriemma is also seeing firms use AI to transcribe customer service and complaints calls, as well as write summarizing notes in collections.

“Many of our members are changing their AI strategy to look more closely at back-office operations,” says Nicole Toussaint, Senior Manager at Auriemma Roundtables UK. “AI chatbots are very complex and require significant investment from a build and oversight perspective, but also come with the risk of providing misinformation. However, leveraging AI in other processes can simply make an employee or agent’s job more efficient without removing the human element from it entirely.”

Consumers will likely see chatbots become more sophisticated, but this may be just the tip of the iceberg compared to the unseen AI-led streamlined processes on the backend.

Survey Methodology

Cardbeat UK

This Auriemma Research study was conducted online within the UK by an independent field service provider on behalf of Auriemma in December 2023, among 800 adult credit cardholders. The number of interviews completed on a monthly basis is sufficient to allow for statistical significance testing between sub-groups at the 95% confidence level ± 5%, unless otherwise noted. The purpose of the research was not disclosed nor did the respondents know the criteria for qualification.

(London, UK) Artificial intelligence (AI) has emerged as a key focus for retail banking operations in recent months. Auriemma Group’s latest series of roundtables tackled the ever-growing space, discussing current usage of AI solutions and how members plan to utilize AI to further enhance their offerings.

“There’s a significant amount of interest in AI across all operational areas,” says Nicole Toussaint, Senior Manager of Industry Roundtables at Auriemma. “Although we’re seeing some hesitation in deploying it, I expect we’ll see some big moves by industry players over the coming months.”

Across all operational areas, firms are hoping to leverage AI to assist front-line employees with navigating their knowledge management systems. This would hopefully improve the accuracy of agent work and help to reduce lengthy training periods. Additionally, firms are considering using the tool enterprise-wide to produce meeting minutes and to assist in communications drafting.

In the Collections and Recoveries space, firms hope to use the tool in their contact strategies. Roundtable members believe that AI can make their contact more effective by creating more bespoke strategies. The technology can help firms decide the optimal time to contact customers, the most effective channel to make contact, and the most engaging messaging and content to use.

Fraud Departments see an opportunity to use AI to improve their current fraud detection models to identify bad actors and fraudulent payments more quickly. Several firms have already partnered with vendors who provide AI-powered fraud mitigation tools.

On the Servicing side, firms are discussing improvements to their chatbot offerings. Currently, many chatbots are FAQ-based, but firms believe that AI can revolutionise the chatbot experience and improve satisfaction scores in the channel.

“We see a clear opportunity to leverage AI to provide dynamic call scripting to front-line agents,” says Toussant. “This would take some of the pressure off agents when servicing and allow banks to provide a more tailored, well-informed customer experience.”

In the Disputes and Chargebacks space, one firm is already using an AI-integrated optical character resolution (OCR) tool to read customer documents provided as proof in a disputes case. Many firms hope to use AI to gain efficiencies in the disputes process. They believe that the tool can help guide agent decisions as they work cases by pulling in bank, scheme, and regulatory policies.

Similarly, in the Complaints space, members see an opportunity for AI to help complaints agents while investigating. AI can not only analyse the materials provided by the complainant but also bring in insights from previously decisioned cases and Financial Ombudsman (FOS) decisions. In this process, the technology can also guide the agent in classifying the complaint type. Some also noted that AI could potentially assist agents with drafting final response letters.

This topic is expected to become an evergreen topic at Auriemma Roundtable meetings, especially as firms identify new use cases and as Auriemma brings in experts from the field to drive further thought leadership.

The next set of roundtable meetings are scheduled for June and July at the Edwardian Hotel in Manchester. If you or any of your colleagues are interested in attending as our guests, please contact us via roundtables@auriemma.group.

About Auriemma Group

For 40 years, Auriemma’s mission has been to empower clients with authoritative data and actionable insights. Our team comprises recognised experts in four primary areas: operational effectiveness, consumer research, co-brand partnerships and corporate finance. Our business intelligence and advisory services give clients access to the data, expertise and tools they need to navigate an increasingly complex environment and maximise their performance. Auriemma serves the consumer financial services ecosystem from our offices in London and New York City. For more information, visit us at www.auriemma.group or contact Nicole Toussaint at nicole.toussaint@auriemma.group.

After a very successful inaugural meeting and growing client demand, we’re excited to announce that we have finalised the date for our next Regulatory Compliance and Privacy Roundtable on the 28th of February in London.

During this session, we intend to continue to do a deep dive into how firms are implementing the New Consumer Duty into their business, and also intend to cover Operational Resiliency, PSD3, CCA Reform, Buy-Now-Pay-Later Regulation, Financial Inclusion and Access to Cash, and more.

The roundtable meeting will span over a day and a half and follow an agenda built exclusively from inputs from attendees. After the first day’s meeting, there will also be a group dinner, where attendees will have the opportunity to network amongst their peers.

If you or any of your colleagues are interested in joining this session, please reach out to Nicole Toussaint at nicole.toussaint@auriemma.group.

Last week concluded our autumn set of roundtables, where we had representation from 23 financial services firms.

As always, the roundtables consisted of ample networking opportunities and engaging discussions. Some highlights from the meetings were:

  • Our Fraud Control Roundtable did deep dives into application and social engineering fraud trends and mitigation techniques.
  • Stephanie Fitzgerald opened up the Customer Service and Complaints Roundtable meeting with a presentation on wellness in the workplace, which was a catalyst for an in-depth discussion on how the industry is currently supporting its employees.
  • The Collections and Recoveries Roundtable shared best practices for becoming more digital in both communication strategies as well as in the income and expenditure process.

Our next set of meetings will be in March 2024. If you’d like to get involved, please reach out to us via roundtables@auriemma.group.

(London, UK) Financial services customer complaint volumes are set to increase amid the uncertain macroeconomic environment and customers’ growing awareness of potential complaint payouts. According to Auriemma Group’s latest Customer Service and Complaints Roundtable, approximately one-third of members have already reported increases in the last three months. This, coupled with customers’ growing desire to complain via voice, will require firms to invest in their complaints management strategies.

“The increase in complaints volume is a real threat to operational efficiency – quick wins will be hard to come by,” says Louis Stevens, Director of Industry Roundtables. “This will likely lead to increased call volumes, the need for further headcount, longer resolving timeframes, higher redress values, and a heightened reputational risk.”

Although customers are showing a growing preference to self-serve for most transaction types, Auriemma’s research found that filing a complaint is one of the few areas where preference for voice chat is growing (i.e., 30% of respondents preferring voice in Q2-23 up from 22% in Q2-21). However, while some consumers may prefer voice chat, the channel is more costly to service and can often be less efficient. Streamlining this channel is crucial for success.

“We’ve heard some great examples of how firms are tackling these trends in our roundtable network,” says Stevens. “Some are empowering front-line agents to resolve at the first point of contact, others are increasing the number of SMS updates they send customers to reduce repeat contact, and a few have implemented a front-line phone team to deescalate and categorise complaints, all of which have already led to noticeable efficiencies.”

Looking ahead, roundtable members have indicated an intention to improve their root-cause analysis processes, as they believe this can help mitigate these predicted volumes and help them to better serve customers.

This along with a wide variety of other complaints-focused topics are already on the agenda for the upcoming Customer Service and Complaints Roundtable meeting on the 15th and 16th of November in Birmingham. If you or any of your colleagues are interested in attending as our guests, please contact us via roundtables@auriemma.group.

Survey Methodology

Cardbeat UK

This Auriemma Research study was conducted online within the UK by an independent field service provider on behalf of Auriemma in July 2023, among 80o+ adult credit cardholders. The number of interviews completed on a monthly basis is sufficient to allow for statistical significance testing between sub-groups at the 95% confidence level ± 5%, unless otherwise noted. The purpose of the research was not disclosed nor did the respondents know the criteria for qualification.

About Auriemma Group

For nearly 40 years, Auriemma’s mission has been to empower clients with authoritative data and actionable insights. Our team comprises recognized experts in four primary areas: operational effectiveness, consumer research, co-brand partnerships, and corporate finance. Our business intelligence and advisory services give clients access to the data, expertise and tools they need to navigate an increasingly complex environment and maximize their performance. Auriemma serves the consumer financial services ecosystem from our offices in New York City and London. For more information, visit us at www.auriemma.group or contact Louis Stevens at louis.stevens@auriemma.group.

Consumer Duty is finally here, but how is the financial services industry approaching it?

Join us for our inaugural Regulatory Compliance Roundtable meeting on the 18th of October at the St. Pancras Renaissance Hotel London from 9:30 – 17:00 GMT.

The discussion will be primarily focused on the FCA’s New Consumer Duty Act; however, the group will be open to discussions on other regulatory areas (e.g., BiFD findings, ISO 20022 and early discussions on what the industry would want to see from PSD3).

Our meeting agendas are attendee sourced; however, we expect to cover:

  • Changes already made to processes and procedures
  • Early learnings post 31st July go-live date
  • Focus areas for future changes
  • Internal governance structures
  • Third-party oversight models
  • MI and reporting usage
  • Other regulatory areas of focus

If you or your colleagues are interested in attending, please contact nicole.toussaint@auriemma.group.

Our autumn set of roundtable meetings are taking shape, and we would welcome you and your team to join us as our guest.

The dates for the upcoming meetings are:

  • Fraud Control Roundtable – 2nd and 3rd November – Manchester
  • Customer Service and Complaints Roundtable – 15th and 16th November – Birmingham
  • Collections and Recoveries Roundtable – 23rd and 24th November – Birmingham

Roundtable meetings provide a unique environment for the industry to openly discuss challenges, concerns, best practices, learnings and more, whilst networking amongst peers.

Agendas are entirely sourced from those who attend and prioritised accordingly, so you can be sure that the subjects currently pertinent to you are covered.

If you or your colleagues are interested in joining for any of the above sessions, please contact nicole.toussaint@auriemma.group.

(London, UK) The Financial Conduct Authority’s (FCA’s) New Consumer Duty went into full effect on the 31st of July 2023. Auriemma  Industry Roundtable members have been eager to collaborate with one another on how the regulation could affect each operational area and on what changes they are prioritising. At each meeting this year, roundtable members shared department-specific plans for tackling Consumer Duty as well as greater, overall objectives.

Collections and Recoveries Roundtable members are aligned in their focus on ensuring their forbearance toolkits are fit for purpose – with 23% of members introducing new forbearance options for struggling customers. Additionally, 54% of members indicated an intent to make changes to their supplier-oversight strategies—another focus area of the regulation.

“Our Customer Service members are hyper focused on communication structure and readability,” says Louis Stevens, Auriemma Industry Roundtables Director, “They are reviewing their entire communications catalogue and leveraging external partners to ensure verbiage meets the average UK reading and numerology levels.” To further ensure comprehension, many are also utilising customer research groups.

Complaints and Disputes departments alike are improving the customer experience around submitting a complaint/claim. They have increased the number of touchpoints to keep customers updated on the progress of their claim, with 15% of roundtable members intending to introduce text message updates as part of their journeys. As with Customer Service teams, 46% also intends to change their communication content, especially with complaints.

Fraud Control Roundtable members are pivoting to track more outcomes-based metrics and building new reporting structures around them. Many members have also recognised the need for Fraud Departments to become more involved in the vulnerable customer journey given that vulnerable customers are often targeted victims of fraud.

When looking at Operations as a whole, roundtable members have common themes within their plans. At the recent Auriemma Consumer Duty Workshop, 92% of members indicated they intend to run new training plans under Consumer Duty with the goal of building awareness amongst the department and delivering pinpointed training on how the regulation will affect individual roles. Outcome testing is a primary focus for many with 70% of firms already having had outcome testing frameworks in place, and the remaining 30% having planned to implement it in the months leading up to the deadline.

“Although it is crucial that the industry makes specific changes to comply with the New Consumer Duty, we must not forget that the intention of this regulation is to trigger a cultural change not just act as a tick-box exercise,” says Stevens. “This is not just a cultural change at the company level either, but rather across the industry as a whole. Collaboration amongst firms is crucial not only to comply with the regulation but to ensure the best possible outcomes for customers.”

To assist in this change, Auriemma is excited to announce its newly launched Regulatory Compliance Roundtable, with the pilot meeting specifically covering Consumer Duty. The agenda will be participant-led but will likely cover early learnings post the go-live date, planned future changes, internal governance structures, third-party oversight models, MI & reporting usage and more.

“We’re really excited for this new group and the enthusiasm we’re already seeing behind it,” says Stevens. “We hope that the group can become an extension of firms’ Consumer Duty teams and help shape the future of how this regulation is successfully implemented within the industry.”

The meeting is scheduled for the 18th of October at the St. Pancras Renaissance Hotel in London. If you or any of your colleagues are interested in attending as our guests, please contact us via roundtables@auriemma.group.

About Auriemma Group

For more than 35 years, Auriemma’s mission has been to empower clients with authoritative data and actionable insights. Our team comprises recognised experts in four primary areas: operational effectiveness, consumer research, co-brand partnerships and corporate finance. Our business intelligence and advisory services give clients access to the data, expertise and tools they need to navigate an increasingly complex environment and maximise their performance. Auriemma serves the consumer financial services ecosystem from our offices in London and New York City. For more information, visit us at www.auriemma.group or contact Louis Stevens at louis.stevens@auriemma.group.

On the 7th of July we had the pleasure of having Dr. Stephanie Fitzgerald join us at the Collections and Recoveries Roundtable meeting in London to discuss best practices for preventing and managing burnout.

Since the pandemic, burnout has become particularly challenging for Collections front-line agents given the challenging conversations they have whilst working from home. Dr. Fitzgerald provided the group with practical techniques to use on their own teams to prevent burnout and build a healthier working culture.

Dr. Fitzgerald will also be joining us at the upcoming Customer Service and Complaints Roundtable meeting on the 15th and 16th of November in Birmingham. If you are interested in joining for the event, please reach out to roundtables@auriemma.group, or you can purchase a copy of her upcoming book “Reworked” on Amazon.

© Copyright - Auriemma Group