Banks and credit unions need to serve a large variety of different users, all with a variety of different needs. Many customers of banks and members of credit unions are primarily turning to digital spaces to manage their finances: Web and Mobile are increasingly becoming the primary ways in which younger segments of banking customers engage with their financial institution. Wherever a customer’s needs may not be met by their primary bank or credit union, new fintech solutions are filling in these gaps and provide services that more traditional FIs aren’t providing.
New financial service solutions like money transfer or management apps are beginning to introduce financial products of their own, with the potential of becoming digitally-focused neobanks primed to steal market share from traditional financial institutions. Users want the features that fintechs provide, but also have much more trust in traditional FIs: only 8% of surveyed respondents trust tech companies or fintechs over banks and credit unions with their financial data. What if, rather than competing with fintechs, a bank or credit union could integrate those features directly into their existing digital channels? You could combine the trust that users have in traditional financial institutions with the ability to satisfy the newly evolving needs of your Gen Z and Millennial users.
Greg Varnell, VP of Product & Development at Q2, sees this as a valuable opportunity for banks and credit unions to satisfy customer needs and improve their digital banking experiences. Q2’s accelerator program and marketplace features allow for easy, seamless integration with a wide variety of fintech services into their digital banking platform. These fintech apps can easily be plugged into Q2, an already stellar digital banking platform, to further enhance and optimize the functionality for your users.
“At Q2, we have used our technology stack and our caliber SDK to invite the fintechs to come integrate directly into our digital banking platform” says Varnell, “this makes it easier for end-users to identify and locate those [features]… we really have an amazing opportunity to put the exact application an end-user is looking for right in their lap”. Through integration with fintech services, a bank or credit union can draw on the benefits of niche/speciality financial services without needing to compete with other businesses that dedicate themselves to such ventures.
Q2 customers are able to take advantage of these fintech solutions like Finn AI’s chatbot and use their services to help give their customers or members what they want in their digital spaces. Donna Jaskolski, SVP & Customer Experience Officer of Civista Bank, knew that embracing digital tools was an important next-step for Civista. “Prior to the pandemic, we had put on our 5 year strategic plan, which really meant a change in our outlook on using digital platforms,” says Jaskolski, “Then the pandemic hit us in March, and that precipitated us moving very quickly…”. While they had already been looking to further adopt digital banking tools for their users, the ongoing Covid-19 pandemic has only escalated the need for providing end-users with a variety of fintech service options. Having an up-to-date, thorough digital platform is far more important in a time where in-person banking became less of an option.
Finn AI: An Example of a Seamless Fintech Integration
As an example of a fintech integration many Q2 customers are taking, Finn AI’s banking chatbot solution is pre-integrated into Q2 and can be easily added into any digital financial service. “Finn AI helps in that digital support model, helping end-users find what they need, when they need it” Greg Varnell says. The AI-Powered virtual assistant helps improve the customer support experience for banks and credit unions, improving the digital experience. Nearly half of Gen Z and Millennial respondents indicated that the digital banking experience is very important when they’re choosing a financial service provider, so utilizing integrated digital tools which are proven to improve digital experience is a crucial step for maintaining a younger demographic’s retention.
“Our main reason for starting a conversational banking support channel [with Finn AI] was to meet the customer in their preferred location, 24/7/365” says Justin Knowles of City Bank Texas. Live, text-based chat is the support channel with the widest appeal among all generations, and an AI-driven chatbot can provide a live chat experience at any hour, without requiring a human agent to answer user questions. Users want service when it’s convenient for them, including outside your institution’s normal operating hours.
Another benefit that Finn AI provides Q2 customers is increased support for a bank or credit union’s contact center. AI-Driven chatbots excel at providing answers to routine, FAQ type questions which normally take away from your support staff’s time to handle more complex, relationship-building questions. Warren Pattison, Head of Emerging Technology at United FCU, cites this as one of their main reasons for the implementation of Finn AI’s chatbot: “We distinctly could have that bot answer a number of questions that was taking up a lot of our time with our call center and frontline staff”.
Ultimately, virtual assistants and automated money management are services that the next generation of financial customers want: 39% of Gen Z’s and 30% of Millennials surveyed wanted to see automated financial guidance as a future service, and 31% of Gen Z’s and 28% of Millennials wanted a virtual assistant. By utilizing Finn AI within a Q2 banking platform, you satisfy this emerging customer need without needing to create your own AI-driven chatbot solution to do so.
Transforming your Digital Banking Experience
Emerging fintech apps and brands can serve as a benefit to banks and credit unions rather than emerging competitors. By utilizing these fintech services within your pre-existing Q2 digital banking channel, you can maximize digital engagement while keeping users engaged within your institution. While many younger users are currently using a multitude of different financial apps, the majority still trust banks and credit unions much more than tech companies and fintechs. Your users will be able to enjoy the convenience of these fintech services, all while maintaining the peace-of-mind that comes with managing finances with an established financial institution that they have a pre-existing trust in.
To learn more about integrating an AI-powered chatbot into Q2, check out this video where Greg Varnell of Q2 and Warren Pattison of United FCU talk more about the integration process and how a virtual assistant elevates the banking experience.