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Friday, November 27, 2020

How Voice Technology is Changing the Financial Industry 

Speech recognition and voice technologies have higher level rapidly in the last few years. Most people use voice-recognition frequently, interacting with Siri, Alexa, or Cortana. In fact, 51% of ?ndividuals are already using voice-enabled virtual assistants with a smartphone. Here is how voice technology is changing the financial industry.

Voice-enabled devices are to truly save time, to produce things easier, and to become more efficient.

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When on the road, for example, consumers need a hands-free option. While consumers are perfectly comfortable asking Alexa to play a brand new song or for the weather forecast, they are a little more wary of using voice recognition with banking.

Financial institutions, however, have seen plenty of advancements with AI-powered voice technology.

Many are now actually pushing internal projects or partnering with fintech so that you can offer better quality voice-activation services. And while this industry has the added challenge of consumer trust, this technology is truly removing in this space.

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Customer service is key.

One reason why voice technology has brought off in the banking sector is to improve customer support. Thanks to machine learning, this technology can comprehend accents, slang, dialects, intonation, emphasis, and much more, making it simpler to interact with and faster to have questions answered.

Customers are increasingly frustrated with outdated technology that either sends them to the wrong place or places them in long wait times. Financial institutions can not afford to annoy their clients since the rise of fintech has created serious competition in this space.

Voice-driven customer service, therefore, is one key to keeping customers happy.

This technology can answer questions quickly and also comprehend if there is a really angry or upset customer that might need human assistance fast.

Powered by artificial intelligence and machine learning, voice-recognition software doesn’t necessarily replace human employees either. Instead, it serves as an automated support staff that can categorize calls, answer questions, and direct clients to the right place.

Hands-free banking.

Voice payments are beginning to pick up as more consumers become more comfortable with this type of banking. Business Insider notes that the adoption of voice payments is set to cultivate from 8% to 31% of US adults by 2022. The report noted that the facets fueling this growth are “an explosion of voice-enabled devices, generational gains in AI, and a strong consumer value proposition for voice payments.”

Currently, touchless payments are typically only used for small e-commerce transactions.

But this will likely change — as consumers can be more reliant on virtual assistants and much more comfortable with biometrics in banking.

Those who currently use voice payments can send money to friends via platforms such as Venmo, Square Cash, or PayPal. These clients use Alexa to make a purchase and conduct bank transactions such as paying a credit card or making a transfer.

The potential for voice payments is enormous.

Once consumers adopt the technology — the world of ecommerce will impact how consumers find and purchase products. Voice technology creates a new payment method for consumers to use that is even easier than the “one-tap purchase” option.

Overcoming security barriers.

Financial institutions are far more risk-averse than other companies and for good reason. Security breaches have far-reaching impacts beyond just frustrating customers. Given that, while voice technology is quickly evolving, banks are less inclined to launch these tools until they are fully secure.

Aside from ensuring the technology is sound, these businesses will also need certainly to convince the consumer they are trustworthy.

Again, this is an even more difficult task in this industry, where ?ndividuals are less likely to risk personal information being breached. Furthermore, any security problems can make consumers excessively unlikely to utilize this technology in the future.

Another challenge is new regulatory compliance mandates for global banks. The European Union’s revised Payment Services Directive (PSD2), which requires strong customer authentication (SCA), will also have effects on voice-activated payments.

Security obstacles are certainly daunting in fintech.

Those who are an average of less risk-averse, are moving quickly with this technology, pushing innovation forward. Since voice-payments are still nascent and have yet to be widely adopted, first to advertise platforms could have a distinct advantage.

While the security stakes are high, the consumer demand for personalization and fast-acting technology will push banking institutions forward in this endeavor.

As with AI-powered chatbots, consumers began to trust and count on these features, which means we are able to likely are expecting the same from voice technology.

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