Tag Archive for: roundtables

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The Future of AI in Retail Banking Operations

(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.

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Consumers More Pessimistic About Financial Health as Cost-of-Living Crisis Intensifies

(London, UK): Consumer expectations for future financial stability is worsening, with many looking to credit cards for support during the cost-of-living crisis. According to Auriemma Group’s latest issue of Cardbeat UK, 37% of cardholders believe their financial health will worsen in the next 6 months.

Gen Z and younger Millennials express greater optimism about their future financial health than their older counterparts despite increased levels of borrowing. Auriemma’s research found that 20% of cardholders are borrowing more to afford everything they need, rising to 32% among Gen Z and Millennials, and 33% of sub- and near-prime customers. The added strain of rising costs will likely cause these figures grow in the coming months.

“Since the start of the pandemic we have seen a resurgence in consumer spending on debit cards and a rise in transfers from savings to current accounts,” says Jaclyn Holmes, Director of Auriemma Research. “Today it appears rising inflation is furthering the strain on consumers, leading some to rely on their credit cards for essential spending.”

According to Auriemma’s latest findings, over 90% of credit cardholders anticipate rising costs of food, housing, fuel or energy bills to impact their personal finances negatively over the next 12 months. While energy prices were capped at £2,500 for 2 years beginning this month, some households may still see their bills double.

“At a time when all other costs are skyrocketing, the price cap will offer little comfort for many households,” says Holmes. “With more monthly outgoings attributed to energy bills, the pressure on credit card usage and borrowing will likely be even higher.”

But consumers aren’t the only ones bracing for impact. Issuers are also trying to assess how the cost-of-living crisis is currently impacting their cardholders and anticipate the enduring impact moving forward.

“Lenders have already begun seeing the operational impact of this change in customer behaviour,” says Louis Stevens, Director of Auriemma’s Industry Roundtables. “This comes at a time where regulatory initiatives, such as The Consumer Duty Act, are already taking up considerable time and resources.”

As issuers likely tighten risk criteria for customers seeking credit, some may turn to Prime and affluent customers for lower-risk lending opportunities. Auriemma Group will continue to monitor this space closely in upcoming Cardbeat studies and within its Customer Service Roundtable groups.

Survey Methodology

This Auriemma Research study was conducted online within the UK by an independent field service provider on behalf of Auriemma from April-May 2022, 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 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 call Jaclyn Holmes at +44 (0) 207 629 0075.

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3 Ways Banks Are Implementing Hybrid Working Models

(London, UK) Widespread work-from-home started as an adaptation to COVID-19 but is here to stay. In Auriemma Group’s recent roundtable meetings financial institutions discussed long-term working models, all of which include some element of working from home. Their next challenge is developing a hybrid engagement model for their hybrid workforce.

Some have already taken then leap, and since implementing these hybrid models, Auriemma’s roundtable members received employee feedback that some feel less engaged and connected with the company. This, in conjunction with high attrition rates and challenging recruitment, means engagement strategies have become an area of focus.

Those who feel they have developed strong hybrid engagement models have focused on three areas: intentional scheduling, variety of choices and well-being considerations.

Intentional Scheduling

Firms strategically schedule location-appropriate activities when employees are onsite or working remotely. When onsite, firms try to have full teams concurrently present to build comradery and schedule more team-building activities like catered lunches and happy hours. When remote, roundtable members manage engagement via gamification and weekly competitions like step counts and quizzes.

“When managing a hybrid workforce, it is crucial that firms give equal treatment to employees regardless of on-or-offsite work,” says Louis Stevens, Director of Roundtables at Auriemma Group. “Otherwise, this can create a divide in the workforce and even lead to further attrition. Engagement models must cater to both demographics.”

Variety of Choices

Workforces are composed of a diverse mix of people with a diverse set of interests, which can make it challenging to find engagement activities that appeal to everyone. The solution? Including variety in the engagement offerings.

According to members, offerings should cater to both extroverts and introverts alike. One firm developed a successful monthly engagement programme for its employees, which allowed them to choose from a variety of activities like cocktail making classes and sporting events.

Well-Being Considerations

As part of their engagement strategies, financial institutions have incorporated well-being initiatives to protect the mental health of their employees. Initiatives vary from providing access to therapists to scheduling inspirational speakers and allotting weekly personal time in schedules.

30% of Auriemma Customer Service and Complaints Roundtable members have intentionally increased off-phone time for front-line agents since the start of the pandemic as a means of dedicating more time to employee well-being. Employees have the choice to use this time as they wish whether that be for professional development or something like meditation or yoga. Since implementing, firms have seen an improvement in productivity levels.

Auriemma’s roundtable members are still developing their engagement strategies. New developments and learnings will be discussed in depth at the upcoming Collections and Recoveries Roundtable meeting on the 9th and 10th of June in Edinburgh, as well at the Customer Service and Complaints Roundtable meeting on the 16th and 17th of June, also in Edinburgh.

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 call Louis Stevens at +44 (0) 207 629 0075.

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