How behavioural AI solutions benefit financial institutions

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The pandemic has changed the way people manage their finances. User needs have changed and so has the way customers interact with their service providers - for instance, digital touchpoints have emerged as key assets that are helping customers access financial services even when under lockdown or quarantine. Mature customers are ramping up usage on digital platforms, while first-time adopters are onboarding new platforms at a high rate. Meaningful user engagement with an increased focus on utility will be a crucial competitive edge for financial institutions to retain and engage their customers. However, they are discovering that pre-pandemic user intelligence may not always be representative of the current scenario; and that traditional methods of data analyses are perhaps not enough to help companies keep pace with their users. Here are a few reasons why financial teams should consider leveraging behavioural AI solutions to solve this problem.

1. Understand your customers better than you did before: Behavioural AI solutions - like 3LOQ’s Habitual.AI, for instance - analyze complex variables beyond financial transactional data. It blends financial transactional data with demographic and non-financial data (eg. app usage data) to gain a deeper understanding of customer needs and engagement drivers. This arms product and marketing teams with sophisticated, immediately actionable insights that tend to deliver improved results. For example, Habitual.AI’s dynamic recommendations are market-proven to seed repeat organic engagement by activating regular, habitual product usage among customers. This means that teams can see a sustained increase in engagement variables like transactional volumes & transactional frequency, as well as decreased churn rates. 

2. The Snowball Effect: Behavioural AI solutions tend to aim for long-term results rather than short term gains - as an example, Habitual.AI’s recommendations are calculated to build habitual usage, not just provoke the next best action. This also means that the benefits are usually not confined to event-wise impacts - they tend to spill over, delivering gains across the board. At 3LOQ, we often notice this ‘Snowball Effect’ among users who engage with Habitual.AI’s recommendations - they not only discover new, useful features but also ramp up engagement with other products and features as well. 

3. Reduce campaign cost and customer fatigue: Behavioural AI empowers teams to communicate the right message at the right time to the right customer, driving highly-relevant financial campaigns. In addition to this, Habitual.AI has helped marketing teams optimize the frequency of communication as well. The overall result? Boosted campaign metrics, reduced unsubscribe rates and optimized marketing spend.

In short, behavioural AI can be a key tool for financial companies to thrive even in uncertain markets - it unlocks new opportunities for growth while strengthening the users' perceived value of a financial brand. With non-traditional financial players poised to disrupt the sector further, it's perhaps the best time to leverage such ROI-based technology to strengthen one's competitive edge.