Brand encounters of the tech kind

Technology helps financial brands get close to the customer, but it does not guarantee engagement or loyalty

It is nearly impossible to get through the day without running into ads, tele-salespersons or social media chatter about the latest technological feat of financial brands. Be it biometric authentication or the ability to transact seamlessly between accounts or targeted discount offers and shopping opportunities on payment wallets, everyone — from traditional banks to the newly minted community of Fintech start-ups — is talking up the technology that powers their customer interfaces. However, recent studies indicate that technology can merely enable the connections with customers; engagement takes more than an algorithm. 
 

Technology is driving branding and communication in the banking and financial sector, but the recently released Interbrand Best Global Brands 2017 says, a number of other factors contribute to brand loyalty and customer engagement. And if these are not accounted for, technology can do more harm than good. For example, the study cites the proliferating use of voice assistants, a new frontier for many brands. While the technology is empowering, brands must be careful as “assistants run the risk of becoming intrusive,” the report says. The trick is to use design and an understanding of customer behaviour along with the latest technology to enhance customer experience.

Tech as partner

“Technology is at the core of our client proposition, especially since we live in times of major technology shifts. In the midst of so many new developments, we have consciously tried to stay focused on what is most relevant to our clients; protection, ease and connectedness,” says Shinjini Kumar, consumer business manager, Global Consumer Banking, Citi India. 

Technology enables and supports major changes such as digitisation as well as financial inclusion. Small finance companies like Capital Float and Svatantra Microfin are using e-KYC as well as apps to facilitate lending to the underbanked.  Most major banks like State Bank of India, ICICI bank among others are collaborating to enable electronic payment for the various transport systems from railways to toll booths. And everyone, from banks and insurance companies to payment wallets, is highlighting the use of technology in their engagement with customers.

        Growing Reliance on Technology

• The adoption rate of home voice assistants grew to
  12 per cent in Q4 2016, across the world
• The virtual reality software and hardware market size
  is expected to grow to $40.4 billion by 2020
• However, one in 5 surveyed said they are looking to disconnect from their screens and spend more time in the real world this year
• Over half of the best global brands are from the autom-otive, technology, financial services, and FMCG sectors
• Worldwide spending on Internet of Things (IoT) will grow 16.7 per cent in 2017, to cross $800 billion
  
  Source: Interbrand Best Global Brands 2017

While, there is no dispute on the ability of technology to transform the customer-financial brands interaction, it is important to understand its limitations and dangers. A recent SAP Digital Experience India 2017 study showed that technology is a double edged sword. While it does help companies reach out to customers more effectively, nine out of 10 customers are likely to switch brands if unhappy with the digital experience.

The Interbrand report says that technology is “Changing people’s behaviours and expectations faster than most businesses can create and innovate.” 

Brand first

The top global companies adopt technology and combine new capabilities and solutions with a strong brand platform, to accelerate their business growth.  However, this growth is unlikely to sustain if a company places technology before the brand.  If a company introduces a certain technology without linking it to its brand, it fails to differentiate itself from the competition. Brands humanise technology; it helps customers get familiar with new and intimidating changes within a familiar framework.  

Citibank says its digital initiatives focus on clients constantly on the move, spend increasingly large amounts of time on their mobile and want to be connected, but on their own terms. Global payments platform Paypal, on the other hand, has changed from a product company to an open platform company, open to partnering with different resource holders across the ecosystem. In this case, technology helps expand the bouquet of options for customers and increase the brand’s value, but unless the partner network is anchored firmly around tangible customer expectations and deliverables, the technology could end up damaging the brand’s value instead.
 

The report warns that “technology, if not fully embraced, the experience, is disruptive rather than immersive, it will only cause alienation in place of connection.” The brand needs to be fully integrated with the technology to keep the customer engaged.

“We believe that we could do things with technology that makes things faster, simpler, more convenient and less expensive, and ultimately drive more financial health to those citizens around the world that need it the most,” said a Paypal representative. PayPal has created instructional videos and chat support in social channels to help customers. Citibank says it is focused on driving client awareness and adoption of digital channels and new innovations. It says it believes in co-creating with customers to make customer experience simple and intuitive. 

While all brands are eager to adopt the latest technology and flaunt it too, the Interbrand report holds out a cautionary note: “There are plenty of companies creating incredible technology and breaking down paradigms that go nowhere.” Clearly the message is that technology works, but only if the brand does.