All posts by Tiffany Taylor

Blog Contributor Tiffany Taylor is a technology marketing professional with broad expertise in a number of marketing disciplines and financial technology expertise including payments, retail and digital banking, core processing, and lending. As the owner of Tiffany Taylor Marketing, Tiffany brings a well-rounded perspective to FinTech marketing and creative content development.
machine learning

3 Applications of Machine Learning in Financial Services

Machine learning is a subset of artificial intelligence that allows computers to “learn” from data without explicit programming from humans. In financial services, it can transform business processes related to customer service, personal finance, and fraud and risk management. Here are some real-life applications of machine learning in each of these areas.

  1. Customer Service

Chatbots are being deployed in financial services to automate common customer service requests, answer frequently asked questions, and assist with transactions like making bill payments. They use natural language processing to understand what a person is saying and formulate an appropriate response in return. However, chatbots sometimes struggle with interactions that go off-script from specific instructions they’ve been programmed to follow.

Machine learning helps customer service chatbots assimilate information from each interaction and “teach” them how to respond in the future. For example, machine learning can teach chatbots how to identify frustration and adapt subsequent responses. This might mean replying with calming language designed to diffuse the situation or perhaps redirecting the frustrated customer to a live agent.

Machine learning can also be used to improve the customer experience. For example, if a customer tends to pay the minimum amount due on their bill at the latest possible date, this behavior might indicate that the customer is facing a cash-flow crunch. Machine learning can identify these patterns and offer the customer a different due date, a payment plan, or even a personal loan to help improve their ability to make on-time payments.

  1. Personal Finance

Budget management apps powered by machine learning provide customers the benefit of highly targeted financial advice and guidance. These apps allow customers to track their spending daily using their mobile devices. Machine learning can then analyze this data to identify spending patterns that customers might not be aware of and identify areas where they can save.

Machine learning helped one international bank identify struggling customers and provide better options for serving their needs. When the system detected unusual spikes in late-night credit card usage among certain customer segments, combined with low savings rates, the bank determined that these customers were facing some level of financial stress. To reduce the risk of defaulting, customers tagged by the system were automatically given credit limit increases and offered free financial advice.

  1. Fraud and Risk Management

Financial services organizations handle a staggering amount of customer and transaction data that must be scanned for fraud. Payments, in particular, are a hotbed for fraudulent activity—and surveyed treasury and finance professionals believe much of the increase in 2020 can be attributed to the pandemic. Organizations must constantly look for new ways to strengthen fraud prevention and risk management protocols to handle these demands.

Companies like PayPal are using machine learning to enhance their fraud detection and risk management capabilities. Through a combination of linear, neural networks, and deep learning techniques, PayPal’s risk management engines can determine the level of risk associated with a customer within milliseconds. Similarly, financial services organizations can replace statistical risk management models with machine learning algorithms. Several organizations use programs that scan transactions for risk, move flagged transactions to a risk queue, and investigate suspicious activity automatically. Continuously expanding knowledge bases improve the ability of these programs to detect (and prevent) fraud over time.

Insight gathered by machine learning also provides financial services organizations with actionable intelligence that acts as a foundation for subsequent decisions. For example, a machine learning program could tap into various data sources to assign risk scores for loan applicants. Algorithms could then predict which customers are at risk for defaulting on their loans, allowing the bank to tailor its services or adjust terms for each customer.

Machine learning can also help lenders determine the creditworthiness of potential customers. By analyzing past spending behavior and patterns, machine learning could help identify how much credit should be extended to a given customer. The technology would be especially useful for new customers that lack long credit histories. Automating credit and risk scoring processes on a mass scale can help these organizations enhance their models across the board.

The Bottom Line: The applications of machine learning in financial services extend far beyond these few examples. Machine learning shows promise in helping the overall financial system enhance security, deliver better service, and increase operational efficiency—and that’s just the beginning.

More on artificial intelligence in Conversational AI for the Customer Experience.

*This is an update on an original post published July 2019


Today’s legacy and siloed banking technology infrastructure limit financial institutions’ ability to rapidly innovate. It’s time to look at money movement in a new way. Alacriti’s Orbipay Unified Money Movement Services does just that. Whether it’s real-time payments, digital disbursements, or bill pay, our cloud-based platform enables banks and credit unions to quickly and seamlessly deliver modern digital payments and money movement experiences. To speak to an Alacriti payments expert, please call us at (908) 791-2916 or email info@alacriti.com.

Bill Payments on Mobile Devices: A 5-Step Approach

Americans love their mobile devices. Ownership levels of smartphones have continued to climb steadily to 85 percent, while tablet ownership has remained steady since 2016. And in some demographics, mobile device ownership is at near saturation. The average user spends 5.4 hours on their mobile devices per day, and nearly every household in the U.S. owns at least one smartphone. 

This vast ownership of mobile devices has empowered users to streamline many aspects of their lives, from finding information online and communicating with others to consuming media on-demand. The global pandemic has only increased the demand for mobile access to products and services. Mobile devices have transformed commerce experiences with both retailers and service providers. One of the most important elements of this transformation is the ability for consumers to make payments directly from their mobile devices.

Only a few years ago, estimates suggested that almost half of Americans made a mobile payment on their smartphones, and though slower in adoption than other transactions, mobile payments use is increasing. The widespread ownership of mobile devices combined with the increasing use of digital wallets, mobile apps, and P2P payments will only make mobile payments more ubiquitous over time. Customers can benefit not only from the handheld convenience of mobile-based bill payments but from other perks like electronic receipts, custom alerts and notifications, and direct integration to rewards and loyalty programs.

Considering that bill payments are among the most critical payments that consumers make, billers must offer a fully optimized bill payment experience on mobile devices. How can billers do this? Here are five steps to consider.

  1. Mobile optimized biller websites

A mobile-optimized website is a must for bill payments. Users that make payments via a mobile web browser must be able to do so quickly and easily. If not, they might abandon the transaction altogether. Think about design choices like larger font sizes, not-to-be-missed buttons, auto-fill form fields, and limited scrolling.

  1. Guest Pay

Why make bill payers log in on their mobile devices at all? An electronic bill presentment and payment solution (EBPP) can offer a Guest Pay option that eliminates the need for users to log in with a user ID and password. Simply configure the system to request limited information (like an account number and ZIP code) to identify the bill payer and accept their payment.

  1. Text-based bill payments

Text messaging is one of the most-used features on mobile devices and is increasing, so it’s a natural place to engage with customers regarding their bill payments. EBPP solutions can send bill-related alerts and notifications via SMS text message, and users can also configure their accounts to make payments directly via text.

  1. Messaging apps

Messaging apps like Facebook Messenger can also facilitate customer bill payments. EBPP solutions can allow users to connect their billing accounts to Facebook to access billing information and make payments directly in the app via chatbot technology.

  1. Biller apps

Billers might want to invest in their own apps as well. When a user downloads an app, it gives the biller valuable real estate on a device that heavy phone users may check up to 86 times per day. It can also push alerts directly to the user’s home screen and integrate to payment methods saved on the mobile device.

The Bottom Line: A holistic, mobile-based bill payments strategy includes components like optimized websites, Guest Pay, text-based payments, messaging apps, and biller apps. A modern EBPP solution can help billers deliver a seamless bill payment experience directly to the mobile devices that consumers use most. 

Read more about mobile bill pay: Bill Pay the Mobile Way.

*This is an update on an original post published June 2019


Today’s legacy and siloed banking technology infrastructure limit financial institutions’ ability to rapidly innovate. It’s time to look at money movement in a new way. Alacriti’s Orbipay Unified Money Movement Services does just that. Whether it’s real-time payments, digital disbursements, or bill pay, our cloud-based platform enables banks and credit unions to quickly and seamlessly deliver modern digital payments and money movement experiences. To speak to an Alacriti payments expert, please call us at (908) 791-2916 or email info@alacriti.com.

Faster Payments: Full Speed Ahead

Modern commerce can be described in one word – immediate. Customers expect on-demand transactions whether they’re hailing rides, consuming media, or paying bills. Technology has elevated business-to-consumer (B2C) interactions with the help of apps, mobile payments, and ecommerce software that streamline even the simplest transactions.

Now that consumers can pay for goods, services, and experiences with the touch of a finger, expectations are rising for immediate payments in other aspects of commerce. For example, businesses moving money to other businesses more quickly and efficiently. Insurance companies paying their customers’ insurance claims on the spot to lessen disruption to their lives. Employers paying contract employees and freelancers more expediently than issuing paper checks. And cross-border payments of all types being conducted in simpler, more streamlined transactions.

Faster payments are evolving quickly to bring new speed, connectivity, and efficiency to money movement around the world. This blog provides an overview of faster payments, what’s currently underway in the U.S., and global systems that have been developed in support of faster payments. It also provides use cases of real-life applications for faster payments in business to business (B2B), B2C, and consumer to business (C2B) transactions.

Faster Payments Defined

So, what are faster payments? This blog uses the term as a catch-all for advancements in the payments ecosystem designed to help move money between entities faster than the traditional settlement times of the past. Faster payments are also built to leverage safety and security features that can help businesses and consumers better manage the risk that surrounds payment transactions.

Faster Payments in the U.S.

How are faster payments taking shape in the U.S.? Let’s take a closer look at how payment rails are being developed and adapted in support of faster payments.

  1. The Clearing House: Real-Time Payments (RTP®)

When was the last time a new payments infrastructure was launched in the U.S.? In 2017, The Clearing House (TCH) launched its real-time payments (RTP) system, the first new core U.S. payments infrastructure in over 40 years. As a net-new payment network (or “rail”), RTP enables businesses and consumers to instantly send, clear, and settle payments. In addition to speedier transactions, RTP also conforms to consumer protection criteria designed to prevent fraud and increase safety.

The RTP network is currently accessible to financial institutions that hold 70 percent of U.S. demand deposit accounts (DDAs), and the network currently reaches 56 percent of those accounts. The network is built to streamline financial transactions between businesses and consumers by supporting fund transfers, payment requests, and two-way communication between parties.

  1. Same Day ACH

Automated Clearing House (ACH) transactions are the backbone of money movement in America. The network has been in place for over 40 years and facilitates everything from employee payroll direct deposit to mortgage payments. In 2015, Nacha (the governing body of ACH) announced improvements to ACH in support of Same Day ACH. These improvements were intended to accelerate the traditional settlement time of one to two business days to same-day settlement.  

In 2018, Nacha announced further improvements to Same Day ACH that accelerate the availability of funds, increase the dollar limit of transactions to $100,000, and extend the submission window an extra two hours per business day. These improvements took effect over the course of 2020 and 2021, with the expansion of business hours effective March 19, 2021. ACH’s established ubiquity among financial institutions and businesses makes it a natural place to facilitate faster payments via Same Day ACH. In Q1 of 2021, more than 141 million Same Day ACH transactions were recorded, and this number is only expected to keep growing.

  1. Early Warning Services: Zelle®

In 2017, Early Warning Services launched Zelle® to streamline person-to-person (P2P) payments among account holders at U.S. banks. The solution allows money to move by providing an email address or a phone number, thereby avoiding the need to provide sensitive banking, personal, or payment information. Users can pay one another via Zelle through their banking websites, the stand-alone Zelle app, and or other mobile apps.

Zelle leverages relationships with major national banks, credit unions, and regional/community banks to extend its reach to millions of U.S. customers. Transactions are completed within minutes, eliminating the need to write personal checks or use cash. At the end of 2020, Zelle reported 1.2 billion transactions worth $307 billion. Given this uptake and the huge reach of Zelle’s infrastructure, one can only imagine that its usage and adoption will continue to grow over time.  

Faster Payments Around the World

The U.S. faces unique challenges in adopting faster payments due to legacy systems and a fragmented marketplace. However, many countries around the world have established infrastructures in place. Japan was at the forefront of faster payments, launching its Zengin System in 1973. Dozens of countries followed suit in the coming decades, with China’s Internet Banking Payment System (IBPS)  and India’s Immediate Payment Service (IMPS) both rolling out in 2010. More recently, Australia’s New Payments Platform (NPP) went live in 2018. All told, there are approximately 54 real-time payment systems globally, with more to come.

Faster Payments for B2B, B2C, and C2B Transactions

Given that backdrop, what are the real-life applications of faster payments for businesses and consumers? Here are three examples where faster payments can expedite commerce.

Use Case #1: B2B Payments

Businesses depend on suppliers to keep operations running smoothly. And suppliers require on-time payments to keep their goods flowing to businesses. Faster payments can be used in these B2B situations to make immediate payments that reduce the need for invoices, bills, paper checks, and lag times. A supplier can even use RTP messages to make a Request for Payment, a non-obligatory payment “ask” in lieu of a bill or an invoice.

Use Case #2: B2C Payments

Insurance claim payouts are a prime example where faster payments can create an immediate impact on consumers’ lives and strengthen their relationships with insurance providers. In the event of a natural disaster, policyholders may require immediate payouts to help secure basic human needs like food and shelter. Insurance companies can expedite these emergency payouts using faster payments methods, cutting down the time required for policyholders to receive their funds.

Use Case #3: C2B Payments

There are situations when consumers need to make immediate bill payments to, quite literally, keep the lights on. Using utilities as an example, a customer who is delinquent on their account might be at risk of losing basic services. Faster payments can allow them to make an immediate bill payment on their account and have the funds transferred near-instantaneously.

The Bottom Line: Faster payments are becoming a reality both domestically and globally. As the US catches up to major infrastructures around the world, the use cases for faster payments are sure to expand. The positive impact of faster payments could be a game-changer for businesses and consumers alike, with the potential to streamline commerce like never before. 

What can the rest of the world teach us about faster payments? Find out here

*This is an update on an original post published June 2019


Today’s legacy and siloed banking technology infrastructure limit financial institutions’ ability to rapidly innovate. It’s time to look at money movement in a new way. Alacriti’s Orbipay Unified Money Movement Services does just that. Whether it’s real-time payments, digital disbursements, or bill pay, our cloud-based platform enables banks and credit unions to quickly and seamlessly deliver modern digital payments and money movement experiences. To speak to an Alacriti payments expert, please call us at (908) 791-2916 or email info@alacriti.com.

How to Convert Customers to Paperless Billing

Some customers might prefer paper bills for perceived benefits like record retention and physical reminders of upcoming payments due. However, the global pandemic has increased the demand for paperless everything. Providing a choice between the two options is important. But e-bills can provide benefits for billers and customers alike.

What are some ways your organization can encourage a permanent switch to e-bills? Here are six techniques to consider. 

  1. Present digital bills designed with users in mind

Paper bills are designed to help readers easily identify important account information on the first page. A digital bill must present an equally easy-to-read design customized for the screen it’s displayed on (desktop, tablet, or smartphone). It must also allow users to quickly identify the amount owed, due date, and any additional fees or charges without unnecessary clicking, scrolling, or searching. Delivering an easy-to-use electronic billing experience is the first step in convincing customers to move away from paper.  

  1. Reinforce the eco-friendly benefits of electronic bills

Paper bills require precious resources including, ink, paper, and fossil fuels, for delivery. Electronic distribution can help reduce the overall carbon footprint of the bill issuing process. As customers become increasingly aware of their consumption habits, reinforcing the message of e-bills as a friendlier option for the environment might encourage them to make the switch.

  1. Maintain historical bills in a secure online location

A key benefit of paper bills is that the physical copies can be easily retained for future reference. Many electronic bill presentment and payment (EBPP) solutions provide access to archived bills for easy reference and printing on-demand. In addition, accessing these bills with a user ID and password also helps protect the personal information they contain.

  1. Send timely, personalized electronic bill reminders

Many customers may depend on paper bills as physical reminders that their payments are due. EBPP providers can send email and text message reminders with bill information, delivered to the electronic channels that customers use most. This is a critical customer touchpoint that can help encourage on-time bill payments and create positive brand interactions.

  1. Offer incentives for adopting electronic billing

Convincing customers to adopt e-bills might just come down to incentives like gift cards, promotional items, and or discounts. A small financial incentive might be the tipping point that encourages a customer to change their billing behavior. To determine which incentives are most appropriate, consider their cost in relationship to the long-term operational savings your organization can realize.

  1. Remind customers of the benefits of touchless self-service bill pay options in light of COVID-19

Demand for contactless everything has increased exponentially in the days since the pandemic began. Remind customers that paperless, digital options for paying bills exist and offer a safer way to settle their accounts while educating them on the features that can replace the benefits of paper bills, like digital record-keeping and automated reminders, to overcome objections.  

More on bills in Bill Payments: Helping Small Businesses Think Big.

*This is an update on an original post published May 2019


Today’s legacy and siloed banking technology infrastructure limit financial institutions’ ability to rapidly innovate. It’s time to look at money movement in a new way. Alacriti’s Orbipay Unified Money Movement Services does just that. Whether it’s real-time paymentsdigital disbursements, or bill pay, our cloud-based platform enables banks and credit unions to quickly and seamlessly deliver modern digital payments and money movement experiences.  To speak to an Alacriti payments expert, please call us at (908) 791-2916 or email info@alacriti.com.

Back to Basics: ACH for Bill Payments

Electronic bill payments are only possible because of the payment methods that make digital fund transfers possible. The “big three” funding methods of electronic bill presentment and payments (EBPP) include credit cards, debit cards, and ACH transactions. While there are benefits associated with each of these payment methods, ACH dominates the transactions processed via Alacriti’s Orbipay® EBPP. In 2020, 68% of total transactions used ACH as their funding source, far outpacing debit card and credit card payments.

For those that might be unfamiliar with ACH, here’s a quick look at the basics of how it works and some of the attributes that make it a desirable choice for funding bill payments.

What is ACH?

ACH stands for the Automated Clearing House network, which moves information and money electronically between U.S. bank accounts. The network is a batch processing system that supports two types of transactions, Direct Deposit and Direct Payment. For example, Direct Deposit of paychecks from employer to employee are typically executed using ACH when the employee authorizes these transactions and provides their bank account information to their employer. Direct Payments are popular for making bill payments, both one-time and recurring because customers can automate their payments and reduce the likelihood of missing a due date.

Which entities participate in ACH transactions?

ACH transactions require cooperation across several different entities. Here are the key players.

Originator

An Originator is a company, consumer, or organization that is authorized to initiate ACH entries (both credits and debits) into the payment system. These entries can initiate  once an arrangement is in place between the Originator and the Receiver. In the case of Direct Deposit, the Originator would be the employer that is transferring payroll funds to an employee. In the case of a bill payment, the Originator would be the biller that is requesting funds from their customer.

Originating Depository Financial Institution (ODFI)

The ODFI is the financial institution that receives payment instructions from the Originator and forwards the entries to the ACH Operator.

ACH Operator

The ACH Operator acts as a central clearing facility that works on behalf of the DFIs, both Originating and Receiving. It receives batches of ACH entries from the ODFI and then sorts and distributes those entries to the appropriate RDFIs. There are currently two ACH Operators, The Federal Reserve, and The Clearing House.

Receiving Depository Financial Institution (RDFI)

The RDFI is the financial institution that receives ACH entries from the ACH Operator and posts the entries to the accounts of its Receivers.

Receiver

A Receiver is a company or consumer that authorized an Originator to initiate an ACH entry (credit or debit) into their account via the RDFI.

How does an ACH transaction work?

The workflow below illustrates the progression of an ACH transaction for a customer bill payment.

The Bottom Line: The ACH network is an integral player in money movement throughout the U.S. ACH is often chosen for bill payments because customers can authorize direct debits of their bank accounts and automate future transactions, reducing the likelihood of missed bill payments.

Learn statistics about ACH usage in our 2020 Trends Report

*This is an update on an original post published April 2019


Today’s legacy and siloed banking technology infrastructure limit financial institutions’ ability to rapidly innovate. It’s time to look at money movement in a new way. Alacriti’s Orbipay Unified Money Movement Services does just that. Whether it’s real-time paymentsdigital disbursements, or bill pay, our cloud-based platform enables banks and credit unions to quickly and seamlessly deliver modern digital payments and money movement experiences. To speak to an Alacriti payments expert, please call us at (908) 791-2916 or email info@alacriti.com.

Ditching Paper Checks for Digital Disbursements: 5 Use Cases

Paper checks still show up regularly in people’s mailboxes. They’re a go-to not only for personal debts but also for businesses that need to pay their employees, vendors, and customers. Mobile banking apps have streamlined the check cashing process, allowing customers to deposit checks with the snap of a smartphone camera. But many people are still willing to sign their checks, physically visit a branch location or ATM, and deposit them in person.

With so many advancements in FinTech, it’s hard to believe that paper checks are still issued to the extent that they are. Although not as popular as they used to be, pre-COVID, Americans did write out 14.5 billion checks in 2018, and as of 2019,  42% of B2B payments were still made by check. But the global pandemic may finally accelerate the demise of paper checks. In its aftermath, some 31 percent of surveyed consumers indicated they are ditching paper checks in favor of digital payments. Solutions like Zelle® have emerged to facilitate person-to-person payments without the need to write physical checks. And businesses are increasingly interested in adopting solutions that can reduce, or eliminate, their dependence on paper checks.

For businesses, this ongoing dependence on paper checks can be time-consuming, costly, and not to mention consumer-unfriendly. The costs of writing a paper check can vary anywhere from $1 to $10, depending on the nature of the business and the transaction. These costs not only include the physical components of paper checks – the printing, fulfillment, and postage – but also the employee hours spent managing the check issuing process. Add to that the financial and operational headaches of managing who has cashed outstanding checks and when, and it becomes clear that moving toward digital payouts can have a significant positive impact on business operations.

Digital Disbursements are a solution that can help businesses move away from paper checks and toward electronic payouts. With Digital Disbursements, payouts can be issued directly to payees’ bank accounts without the need for a paper check. In doing so, businesses can better manage their cash flow and operations while also providing a more streamlined experience for payees.

The need for Digital Disbursements is becoming greater as people increasingly expect on-demand payment experiences. In addition, the changing nature of our economy makes quick, payee-focused payouts more important than ever. Here are five use cases where Digital Disbursements can eliminate paper checks and streamline payouts.

Insurance Claims

Perhaps the most critical component of any insurance policy is the policyholder knowing that funds will be available when they need them. Filing an insurance claim often coincides with disruptive life events like auto accidents, severe weather, medical emergencies, or catastrophic events like fires. At these times, policyholders might need funds immediately to cover basic human needs like food, water, and shelter. The ability to issue payouts digitally to policyholders can lessen the disruption of these events and help them return to their normal lives sooner.

Healthcare

Navigating healthcare payments can be a dizzying experience involving insurance, co-insurance, deductibles, co-payments – the list goes on. Patients are often unsure of what they owe in conjunction with their insurance, which can lead to overpayment of their accounts. For healthcare providers, there can be delays in payments from their patients’ insurance companies. This can also lead to inaccurate calculations of balances owed. When a patient overpays on their account, they want the funds returned to them as quickly as possible. In these cases, Digital Disbursements can facilitate the return of funds to patients quickly and easily, without the need for a paper check.

Contract Employees and Freelance Staffing

Freelancers and contract workers are an undeniable employment force in America—and growing rapidly in light of the global pandemic. Upwork’s Freelance Forward Economics Report estimates that over one-third (36%) of Americans are freelancers and that 53% of Gen Z workers are freelancers, more than any other generation.

As more and more people flock to contract and freelance work, the need for digital payouts is increasing as well. Digital Disbursements can help mirror the experience of direct deposited paychecks while also ensuring that contractors and freelancers get their payments without any delay. This can help sustain their continued engagement and potentially reduce the risk of losing them to other short-term gigs.

The Sharing Economy and Online Marketplaces

The sharing economy has revolutionized everything from personal transportation to selling goods and services online. This decentralization means that payouts are often issued directly to individuals instead of businesses. Digital Disbursements can mean quick payouts to the underlying providers without the hassle of issuing paper checks. These electronic payouts can help keep the sharing economy and online marketplaces humming along. Supporting the streamlined experiences that customers have come to expect.

Rentals

Most rentals – whether an apartment, house, vacation property, or storage unit – require an upfront payment of a security deposit to cover any damage that might be caused by the renter. The underlying owner must maintain these funds and ultimately pay them back if the terms of the rental agreement have been met. This process can be time-consuming and even lengthier when paper checks are involved. Digital Disbursements can speed up the return of a security deposit without the renter needing to cash a physical check. For property management companies, Digital Disbursements can also be an easy, low-cost way to disburse rental payouts to underlying property owners. 

The Bottom Line: As the economy changes, so do consumers’ expectations for quick and easy payouts. Digital Disbursements can help businesses modernize the payout process, eliminating the need for paper checks.

Learn about what faster payments, in general, can do for your industry in our blog

*This is an update on an original post published January 2019 


Today’s legacy and siloed banking technology infrastructure limit financial institutions’ ability to rapidly innovate. It’s time to look at money movement in a new way. Alacriti’s Orbipay Unified Money Movement Services does just that. Whether it’s real-time payments digital disbursements, or bill pay, our cloud-based platform enables banks and credit unions to quickly and seamlessly deliver modern digital payments and money movement experiences. To speak to an Alacriti payments expert, please call us at (908) 791-2916 or email info@alacriti.com.

Fintech Disruption: Creating Opportunities for Financial Institutions

Consumers demand more from their relationships with financial institutions than ever before. They expect these organizations to know them, understand their needs and wants, take a vested interest in their well-being, and provide choices that are personalized just for them.

In recent years, financial institutions have struggled with their ability to adapt to the expectations of today’s customers. Older technologies are being pushed to the max to compensate for the lack of ongoing investment. Add to this the increasing pressure from competitors and regulators, and these factors may leave financial institutions unwilling to explore advanced technologies, emerging payments, and/or open banking solutions.

Digital commerce and payments have been exploding exponentially for some time—and the need to accelerate digitalization has only been exacerbated by the global pandemic. Simultaneously, consumers’ expectations are heightening as they grow accustomed to hyper-personalized commerce experiences and the need for contactless service options. Leveraging the right technology at the right time can help financial institutions meet customers exactly where they are, delivering a better payment experience while encouraging long-term loyalty.

Conversational Touch Points

Consumers now exist in a digitized world as hyper-connected beings, craving technology and the choices it creates. 85 percent of Americans own a smartphone, and 15 percent of Americans use smartphones as their primary means of accessing the Internet. And the amount of screen time Americans spend on their mobile devices has been increasing steadily in recent years—to 5.4 hours daily on average, up from 3.33 hours just three years ago.

Consider, too, that Amazon’s Alexa, along with other virtual assistants, is a relatively new technology. In 2016, there were 130 skills for Alexa; in 2019, there were already over 100,000. And it’s expected that in 2021 the number of smart speaker users in the U.S. will grow by 13.7 percent to 83.1 million. Voice-activated payments are an important part of this skill set. It’s estimated that by 2022, 31% of all payments will be made via voice-response technology.

These statistics show that the way consumers make payments and interact with businesses is evolving at an expeditious rate. Voice-response and conversational commerce further the dimensions of choice and personal preference, elevating the overall level of satisfaction that consumers now expect. This high level of device ownership and mobile engagement presents a powerful opportunity for financial institutions to reframe the impression that “all banks are the same” by leveraging these channels to revolutionize the customer journey.

GAFA Disruption

The “Big Four” tech companies (Google, Apple, Facebook, and Amazon) are also disrupting payments and becoming a threat to traditional financial institutions. These companies drive loyalty by creating real connections to people and their daily lives, meeting their needs with seemingly limitless options. Their huge customer bases supply the data needed to study and understand what motivates consumers. Add to this the economies of scale they create through forward-thinking technology, customer engagement, and lower prices, and financial services are the next natural step in their journey. Done right, the Big Four could have an impact on traditional financial institutions by connecting a single customer’s personal experience to an integrated global payment and financial services ecosystem.

How to Turn the Tide

Start by answering, what has your financial institution done lately to invest in your customers’ expectations? If you’re only offering traditional payment options, are they enough? Are you invested in, or considering investments in, enhancements like digital channels, APIs, open banking, and artificial intelligence (AI) technology? Traditional financial institutions need to start thinking like fintechs, taking risks, and challenging the status quo. This can be done both internally and through partnerships with industry disruptors.

Making payments easier, faster, and with less friction is a key way to simplify the customer journey.  For example, faster payments are a ripe opportunity to get ahead of the curve. Faster payments coupled with real-time data are game-changers for both the customer experience and financial institutions seeking a competitive edge. Customers want instant gratification, so taking hours, or even days, to settle a payment is simply too long. With so much data and information available in seconds, there is no reason for the speed of payments to remain outdated.

Data and analytics are also at the heart of this transformation. By analyzing internal metrics of payments and customer interactions, financial institutions can gain better insight into customers’ likes/dislikes, wants, and needs. This data can extend to AI, machine learning, and other advanced analytical tools. Which can provide opportunities for greater personalization and channel optimization in the future.

The first step in this journey is to evaluate existing digital solutions to determine if upgrades are required. Viable fintech partners can help financial institutions transform legacy systems and create advantages including, scale, stability, and trust. They can also provide deep expertise in navigating compliance and regulatory requirements.

Now more than ever, a personalized customer experience is a MUST. Now is the time for financial institutions to move from a product-focus to a customer-focus by providing cutting-edge technology, building trust, and embracing the power of choice. 

For more on disruption, read the article, Turn and Face the Strange Changes in the Payments Industry

*This is an update on an original post published April 2019


Today’s legacy and siloed banking technology infrastructure limit financial institutions’ ability to rapidly innovate. It’s time to look at money movement in a new way. Alacriti’s Orbipay Unified Money Movement Services does just that. Whether it’s real-time paymentsdigital disbursements, or bill pay, our cloud-based platform enables banks and credit unions to quickly and seamlessly deliver modern digital payments and money movement experiences.  To speak to an Alacriti payments expert, please call us at (908) 791-2916 or email info@alacriti.com

The SWIFT Approach to Payments Security

Ensuring the security of Alacriti’s payments environment is an ongoing process. It demands collaboration and cooperation across the entire organization. Our role in facilitating electronic bill payments means we are subject to the strenuous requirements set forth by HIPAA, HiTech, and PCI DSS compliance. As more threats and bad actors emerge, we too must evolve to provide a safe electronic solution that our clients and end-users can trust. 

Our security discipline also demands that we stay aware of and communicate other security approaches to our community. Another development within the last couple of years is SWIFT’s Customer Security Programme (CSP). It is another way to help protect the health of the financial system and the counterparties within it.

Here’s an introduction to SWIFT, its CSP, and information on its Customer Security Controls Framework, which lays the foundation of the program.

What is SWIFT?

SWIFT is an acronym for the Society for the Worldwide Interbank Financial Telecommunication. SWIFT provides a platform for standard messaging and communication that connects to over 11,000 banking and securities organizations, market infrastructures, and corporate customers across the globe. The platform supports money movement worldwide by facilitating secure, standardized financial messages between organizations.

What is SWIFT’s Customer Security Programme (CSP)?

SWIFT developed its CSP to help thwart cyberattacks and the negative consequences they can have on businesses, consumers, and organizations around the world. The global ubiquity of SWIFT’s platform makes it a natural place to implement security protocol to help organizations better protect their transactions from fraud. The CSP is built around three core steps:

  1. Organizations should understand SWIFT’s Customer Security Controls Framework
  2. Organizations should close any gaps they identify against the controls
  3. Organizations should self-attest their level of compliance

 

In 2017, SWIFT introduced CSP in self-attestation mode. Which allowed participants to familiarize themselves with the goals, framework, lifecycle steps, and threat mitigation principles of the program. In 2018, SWIFT allowed participants to build on their experience and improve their security posture with additional mandatory controls.

What is the Customer Security Controls Framework (CSCF) v2021?

The CSCF v2021 provides information on changes to controls, additional guidance, and many clarifications to existing controls and their associated implementation guidelines. 

Mandatory controls include restricting internet access, segregating critical systems, preventing compromise of credentials, and detecting anomalies. Read the full framework here.

Image Source: https://www.swift.com/news-events/webinars/customer-security-controls-framework

How does SWIFT’s CSP help an organization’s overall security?

When a participating organization attests its level of compliance, that attestation can then be shared easily, in a standard manner, with counterparties. This streamlined communication can help mitigate risk and let organizations decide if certain counterparties they’re dealing with require additional controls.

How does SWIFT’s CSP help with payments?

SWIFT’s CSP also has a Payment Controls service that sends alerts for suspicious or out-of-policy messages. The Payment Controls leverage real-time payments monitoring, behavioral patterns, and independent daily reporting to help mitigate the risk of fraud.

The Bottom Line: The CSP helps SWIFT customers secure their own environments, detect fraud among their counterparties, and share information that can protect against future threats. This approach promotes both individual responsibility and shared responsibility by improving information sharing throughout the community. 

Related: Alacriti Now a SWIFT Customer Security Program Consulting Provider

 * This is an update on an original post published February 2019


Alacriti tackles the complexity of managing SWIFT security and compliance head-on so SWIFT members can focus on core business activities. As a SWIFT CSP consulting provider, we have in-depth skills and expertise to plan, execute and report on security status and recommend critical improvements to meet and maintain CSP security standards. To contact a SWIFT CSP Consultant, please email swiftcsp@alacriti.com.

Conversational AI for the Customer Experience

Experts predict the proliferation of artificial intelligence will be more impactful than the Internet. Here’s how artificial intelligence can help your business streamline operations and deliver a better customer experience.

Data-Driven Digital Experiences

Technology is making it easier than ever to transact and interact with businesses. From ordering lattes to requesting maintenance service, there is a website, app, or voice command to help consumers complete the task in seconds.

Your customers are becoming more and more accustomed to performing these everyday tasks with the assistance of technology. At the heart of popular consumer brands like Starbucks, Uber, and Spotify are robust technology platforms that constantly churn data to deliver seamless and highly personalized customer experiences. Customers are coming to expect a custom-tailored, data-driven digital experience all the time, whether they’re looking for a movie to stream or paying their bills.

Conversational AI Says “Hi”

Much of this technology is powered by artificial intelligence (AI). A long way from the glitchy concepts of the past, today’s intelligent computer systems enable businesses to enhance the customer experience and drive greater organizational efficiency. AI helps businesses automate operations, increase productivity, and better analyze data to inform strategic decisions across every sector. A recent survey by Wipro Limited showed 98% of businesses believe being an “intelligent enterprise” is beneficial.

Advancements in a specific type of AI called natural language processing (NLP) have allowed for the development of highly sophisticated voice recognition engines that further elevate the technology’s potential. Commonly known as “conversational AI,” these engines utilize techniques like intent classification and contextual understanding to learn more about customers and improve conversational ability over time.

Conversational AI is the force behind a growing $7.1 billion (2020) industry that’s projected to reach over $15.6 billion by 2025. Almost one in four Americans already own a smart speaker, making it one of the most rapidly adopted consumer electronics of all time. And as more consumers adopt these devices, the technology is influencing important shifts in consumer behavior.

Voice as the Next Interface

Voice is the next interface for commerce and communication, and it’s creating new markets ripe with opportunity by revolutionizing how your customers shop, find information, and engage with your business. The shift makes sense—talking is simply much more convenient than typing, and currently, 54% of Americans have used voice commands with 24% doing so daily. Choppy conversations with IVR systems are being replaced with chatbots and other digital assistants that can more naturally converse with your customers.

Modern voice recognition engines are savvy enough to remove much of the friction that riddles customer service today, if not all of it, and the technology is only getting better. Recent studies show that consumers even prefer AI-powered chatbots for self-service answers to simple questions over traditional engagement channels, especially as they become more comfortable using voice technology in everyday contexts. Conversational AI doesn’t only make for a better experience for your customers—it also frees employees from tedious customer service tasks that can be easily automated with the help of AI. In billing and payments, chatbots and voice assistants can help customers resolve many common issues like checking their balances or scheduling a payment without having to contact a live agent.

The Bottom Line: Things move fast in the digital age. It is predicted that by 2025, over 95% of customer interactions will be managed by AI. The way customers find, engage, and transact with your business will continue to change along with the evolution of technology itself. AI can help businesses harness the power of these new channels to optimize the customer experience while driving digital transformation.

For more on AI, see our AI and Customer Service by the Numbers infographic.

 *This is an update on an original post published July 2018


Alacriti created Ella, an AI-powered chatbot that facilitates seamless, personalized, and context-aware interactions between you and your customers through messaging apps, intelligent personal assistants, and directly on your website. To find out how Ella can transform how you engage with your customers, contact us at (908) 791-2916 or info@alacriti.com.

Bill Pay the Mobile Way

Customers’ expectations for seamless mobile user experiences (UX) grow higher by the day. The ubiquity and immediacy of mobile devices demand that websites are quick to load, well designed, and fully optimized for mobile. In 2020, 56.32% of all web traffic flowed through mobile devices—but mobile devices also tend to have a higher bounce rate than desktop users, and tablet users bounce at a rate somewhere in between mobile and desktop. And the decision to abandon mobile sites happens quickly. When page load time goes from one second to 10 seconds, the likelihood of a mobile site visitor bouncing increases 123%.

Google’s mobile-first indexing ranks websites by looking at their mobile version first and falling back to the desktop version if mobile is unavailable. This signals the importance of employing a cohesive mobile strategy also optimized for search engine optimization (SEO). In addition, users are becoming more aware of the gap between mobile-optimized websites and those that aren’t. They simply don’t have the time, or the patience, to pinch and zoom to try to find the information they need.

4 mobile-focused approaches to bill payments

One study shows that 21% of consumers have used a company’s mobile app to pay a bill. If you’re a business that accepts online bill payments from your customers, presenting a seamless mobile UX is more important than ever. Given the higher propensity for consumers to abandon mobile sites, the prospect of losing the associated online payment dollars is a risk too big to ignore.

What are some steps that you can take to maximize your business’s mobile UX for bill payments? It begins with a website fully optimized for mobile and extends to other interaction points facilitated by mobile technology. Here are four approaches to consider.

  1. Responsive web design – Responsive web design (RWD) automatically recognizes the size of a device screen that’s used to access your billing and payments website. This technology renders the page correctly for various screen sizes by altering the navigation hierarchy, position of text labels, length of text, etc. This automatic adaption presents users with the most actionable links and information in an intuitive way, helping streamline the bill payment process. Make sure your electronic bill presentment and payment (EBPP) solution is built to respond to your customers no matter what device they choose to use.

  1. Bill and payment-related text alerts – Text messaging is an integral part of our daily lives, with Americans spending 25% of their mobile screen time per day texting. And people are engaged with their texts, with 74% of consumers responding to a text message from a business within an hour. This high level of engagement makes text messaging an important way to communicate billing and payments information directly to your customers. Make sure your EBPP solution allows you to send SMS text messages to your customers that alert them when bills are ready to pay, payments are made, etc. These prompts can help encourage on-time payments and keep your customers up-to-date on all activity related to their billing and payments.

  1. Bill payments-by-text – Take text alerts one step further by allowing your customers to make payments via text message. Billing and payments solutions are now built to support bill payments via SMS when a customer links their cell phone number to their EBPP user account. Alerts can be sent and payments can be made without ever having to leave the text messaging interface. Your customers can type a simple command like “PAY” to complete the bill payment transaction.

  1. Messaging platforms – Messaging technology is also an important part of consumers’ mobile lives. For instance, Facebook Messenger is used by an estimated 1.3 billion people, with over 20 billion messages sent between people and businesses monthly. This is yet another communication channel where you can engage with your customers and encourage them to make payments directly through their mobile devices. By giving them the ability to link their Facebook accounts to your EBPP, you can enable them to make payments directly through Facebook Messenger using chatbot technology. The result is an intuitive, user-friendly customer experience built with convenience in mind.

The Bottom Line: Seamless mobile experiences, including bill payments, are more important to your customers than ever. Make sure your business’s EBPP solution gives them the options they need to make bill payments quickly and easily through the mobile channels of their choice.

 Payments modernization is key. Learn why pay by text is so important in 3 Reasons Why You Need to Offer Pay by Text—Now.

  * This is an update on an original post published April 2018


Alacriti’s Orbipay EBPP is a customizable electronic billing and payments solution for businesses and financial institutions of all sizes. Pay by Text is just one of several Orbipay EBPP features available to help you accelerate receivables. For more information, please contact us at info@alacriti.com.

5 Ways Chatbots Are Redefining Customer Service

Chatbots are popping up in more places than ever, whether we realize it or not. From receiving personalized product recommendations to simply checking the news or local weather, bots are designed to deliver seamless on-demand experiences without relying on human intervention.

One of the most popular platforms for chatbots is Facebook Messenger. It’s estimated that some 300,000 chatbots are now on Facebook Messenger, facilitating approximately 8 billion messages per month between businesses and users. Facebook Messenger is by far the most used messaging app, with over eight times as many users as its rival, Snapchat. Considering that eight out of ten (79%) adults ages 18-29 use Facebook, Facebook Messenger is a natural place for businesses to invest in chatbots to reach younger consumers.

With all the chatbots currently available on Facebook Messenger and other independent platforms, what are some ways that businesses use them to deliver better customer service experiences? Here’s a closer look at five different ways that chatbots are being leveraged to create positive brand interactions.

  1. Facilitating personal banking

Many of the most common household names in banking are investing in chatbot technology to help serve their customers. Bots are being used to facilitate everything from balance transfers and credit report updates to locating the nearest ATM. Chatbots can help make common banking transactions quick and seamless, helping customers resolve inquiries without intervention from customer service representatives. The result is a more personalized and on-demand experience for banking customers.

  1. Paying bills

Chatbots are also being used in Facebook Messenger to facilitate bill payments across a variety of industries. From anticipated monthly charges associated with mortgages and auto finance payments to unexpected bills related to healthcare expenditures, payments can be made without leaving the Facebook Messenger app. Our chatbot Ella is a prime example. As part of our Orbipay electronic bill presentment and payment (EBPP) solution, Ella lets customers perform tasks such as making account inquiries, resolving issues, and paying bills. All within the convenient interface of Facebook Messenger.

  1. Facilitating more personal and relevant interactions

Chatbots can potentially do a better job of recommending relevant products and services to individuals than human customer service representatives by automatically and more quickly connecting data from multiple sources.

In banking, for example, an agent on a call with a customer will simultaneously need to listen to the customer to ascertain what the customer is asking for while also understanding what the customer already uses and what may be the best recommendation for them—in real-time.

By collecting and recalling past and current interactions as well as pulling data from other, integrated sources, Chatbots can do the job faster and more accurately—and without any human biases or errors.

Amazon’s recommendation engine, powered by purchase and chat histories as well as likes and dislikes, now generates 35% of its revenues.

  1. Driving in-store visits…and sales

The retail beauty giant Sephora uses its Facebook Messenger chatbot to facilitate reservations for in-store makeovers. In a few easy steps, customers can choose a store location and book an appointment with a beauty professional. Using its chatbot to drive these in-store visits and one-on-one consultations has paid off for the company. Sephora has seen an 11% higher conversion rate for appointments booked on Messenger than for any other channel.

  1. Managing hotel reservations and stays

Hotels are also leveraging chatbot technology in Facebook Messenger to service their customers from booking their reservations to settling their final bills. But the real power of these bots might just be in the personal touch they can provide guests throughout their stays. Chatbots can process everything from extra pillow requests to room service orders without tying up hotel staff, creating efficiencies for guests and employees alike. In addition, chatbots also give hotels a unique view of their guests’ preferences and behaviors. This data can be used to help identify upsell opportunities during guests’ stays and provide rich data to help personalize future visits.

What’s next?

While Facebook Messenger is an easy entry point for businesses to deploy chatbots for customer service, other platforms are continuously emerging. And, while typing requests through chatbot interfaces is quick and easy, using voice commands is an even simpler way to deliver on-demand customer service. Intelligent personal assistants like Amazon Alexa and Google Assistant take chatbots to the next level by responding to voice commands and performing specific tasks, like paying bills. The result is a faster and more personalized customer service experience than ever before.

The Bottom Line: Customer service delivered via chatbots is a force too big to be ignored. Understand the touchpoints in your business where chatbots can be leveraged to create positive interactions through the channels your customers use most.

 *This is an update on an original post published September 2018


Alacriti created Ella, an AI-powered chatbot that facilitates seamless, personalized, and context-aware interactions between you and your customers through messaging apps, intelligent personal assistants, and directly on your website. To find out how Ella can transform how you engage with your customers, contact us at (908) 791-2916 or info@alacriti.com.

A Primer on PCI DSS

PCI DSS is a set of data security standards that apply to all organizations that store, process or transmit cardholder data. These standards were developed to help ensure that this sensitive data is handled safely and to help protect underlying cardholders. PCI DSS applies to all organizations that accept or process cardholder data, regardless of the size of the company or the industry it serves.

Who enforces PCI DSS?

The PCI Security Standards Council (PCI SSC) was formed by the major payment card brands (American Express, Discover, JCB, Mastercard, and Visa) to oversee and manage PCI DSS. However, the PCI SSC does not enforce PCI DSS—that responsibility falls to the payment card brands. Each card brand has specific requirements for validating merchant compliance and associated reporting standards.

But our business doesn’t store cardholder data. We work with a third-party vendor that does this on our behalf.

Even if your business doesn’t store cardholder data, PCI DSS still applies to the environment that transmits or processes cardholder data. This includes any service providers that store, process, or transmit cardholder data on your business’s behalf.

What is cardholder data?

At a minimum, cardholder data includes the full primary account number (PAN) that appears on the card. It can also include the full PAN plus the account holder’s name, expiration date, and/or the service code of the card.

How does PCI DSS apply to the software vendors that we use to accept payments?

The Payment Application Data Security Standard (PA-DSS) applies to software vendors and payment application vendors that store, process, or transmit cardholder data on behalf of third parties. The payment card brands encourage merchants to use payment solutions that are tested and approved by the PCI SSC; however, it’s important to note that using a third-party vendor doesn’t exclude the associated merchant from PCI DSS compliance. While it may reduce their scope of PCI DSS compliance, it won’t exclude them from it altogether.

How do the payment card brands enforce compliance with PCI DSS?

There are two primary tools that the payment card brands use to help ensure that merchants are PCI DSS compliant:

  1. Qualified Assessors (QSA) and Approved Scanning Vendors (ASV) 

QSAs are approved by the PCI SSC and perform assessments of PCI DSS compliance. ASVs are also approved by the PCI SSC; however, they focus on performing vulnerability scans of both the merchant and the service provider environments that face the internet.

  1. Self-Assessment Questionnaire (SAQ)

For eligible organizations, SAQ is a validation tool that merchants can use to perform self-assessments of their PCI DSS compliance.

What happens if our business doesn’t comply with PCI DSS?

Failure to comply can result in significant fines from the payment card brands. It’s important to note that the payment card brands will impose these fines on their member banking institutions, who will then pass these fines along to the responsible merchants. In some cases, these fines can lead to the cancellation of merchant accounts by their acquirers.

Is PCI DSS compliance a one-time thing?

No. Ensuring the security of your cardholder data is an ongoing endeavor that requires communication and teamwork between many disciplines. In addition, PCI DSS compliance is predicated upon validation levels that are set by the card brands and based upon transaction volume. As your business grows and changes over time, so might your PCI DSS validation level. In addition, industry requirements and card brand rules may change as well. It’s your business’s responsibility to be aware of these changes and react accordingly.

The Bottom Line: Accepting electronic payments opens businesses up to the possibility of fraud. PCI DSS compliance is an important piece of a larger data security and fraud prevention strategy. For more information on PCI DSS, please visit www.pcisecuritystandards.org

If your business initiates web debit transactions, you will also want to know about the new Nacha WEB Debits operating rule, which requires bank account validation. Read more in Understanding the Nacha 2021 Rule Change.

 *This is an update on an original post published May 2018

Financial Institutions Are Investing in Chatbots

At the beginning of 2020, 12.2 million Bank of America customers were already using Erica, the bank’s virtual voice assistant (chatbot). Bank of America and other financial institutions are investing in chatbots because they improve the digital experience and can reduce costs. Some financial institutions hire large staffs to develop their chatbots in-house while others outsource development to third parties, often with no upfront costs.

Wide use by consumers

Chatbots are increasingly being adopted by consumers because of their ease of use. Chatbots allow customers to simply say what they want in their own words which are then processed by the software using natural language processing. Natural language processing is made possible by artificial intelligence (AI) and machine learning, making it more flexible and user-friendly than other self-service technologies. Chatbots can facilitate many tasks including transferring funds, paying bills, and answering questions.

Broad deployment by companies

Because of the improved digital experience and operational cost savings, organizations are widely deploying chatbots—it’s expected that $5 billion will be invested in chatbots by 2021. But many more will need to jump onboard to be prepared for increasing acceptance by consumers due to convenience and speed. Servion Global Solutions predicts that by 2025, 95% of customer interactions will be powered by AI.

Microsoft CEO, Satya Nadella, said, “Pretty much everyone today who’s building applications, whether desktop apps, mobile apps, or websites, will build bots as the new interface.”

Chatbots are available through many channels

Chatbots can be deployed via many channels, allowing companies to meet their customers where they are. Interfaces include voice assistants, Facebook Messenger, the web, and other channels.

  1. Voice assistants

Amazon Alexa, Google Assistant, and others allow customers to interact via voice commands. For example, a user can set a timer, check the weather, pay a bill and operate household controls all while cooking dinner.

  1. Facebook Messenger

One of the most popular chatbot platforms is Facebook Messenger. There are an estimated 300,000 chatbots on Messenger, handling 8 billion messages monthly between businesses and consumers. Wells Fargo, for example, has incorporated Facebook Messenger chatbot capabilities to enable its customers to make common inquiries using natural language for such things as account balance, nearest ATM, most recent transactions, and more. According to the bank, the technology helps them better engage customers at the time and place of their choosing. But another key benefit includes significant cost savings. According to Chatbots Life, the use of chatbots can reduce operational costs related to customer requests by 30 percent. And, while some social platforms appeal to a narrower group of users, Facebook provides access to a wide range of consumers, with 24 percent of Facebook’s advertising audience in the 18-24 age range and 10.4 percent in the 45-54 range, and a relatively even share across most age groups.

  1. The web

It’s becoming increasingly common for users accessing a financial institution’s website to be presented with a virtual assistant upfront. According to a survey by Userlike, at least 54 percent of respondents trust chatbots with basic requests and only 9 percent are against businesses deploying support using chatbots—and this number is only expected to grow, especially as consumers and businesses continue to navigate the “new normal” brought about by the global pandemic.

  1. Other channels

Chatbot technology can be deployed using just about any user interface. Anticipated channels include the native text capability of mobile phones, interactive voice response (IVR) systems, and other emerging channels.

Summary

Chatbots are expected to continue to be widely deployed by companies and heavily used by consumers. They are easier to use than other self-service options because they respond to natural language. Chatbots are also available via many user interfaces, enabling financial institutions to meet their customers where they are. Expected benefits include an improved digital experience, increased self-service adoption, lower costs, higher customer satisfaction, and better rates of customer retention. Is it time for your organization to consider a chatbot?

For more on AI, see our AI and Customer Service by the Numbers infographic.

*This is an update on an original post published November 2018


Alacriti created Ella, an AI-powered chatbot that facilitates seamless, personalized, and context-aware interactions between you and your customers through messaging apps, intelligent personal assistants, and directly on your website. To find out how Ella can transform how you engage with your customers, contact us at (908) 791-2916 or info@alacriti.com.