Digital transformation has become a central strategy for banks. Fintech disruptors are challenging existing business models, retail banking has pivoted away from in-branch customer interactions, and the introduction of regulations such as PSD2 and GDPR have redefined internal processes for good. So far, mobile apps have been the vehicle for this shift, but consumer adoption of mobile banking has stalled. As a result, banks are looking for new ways to deliver their services to customers.
Lots of customers are happy to check online statements and conduct transactions from their smartphone, but there are still plenty of people who want a more personal service from their bank. According to Deloitte, 29 percent of consumers have never used a banking app, while just 30 percent prefer to use online banking or a mobile app for complex or advisory services. These underserved customers are the next frontier in the banking industry's digital arms race.
Simpler, More Human Banking
It's now possible for banks to provide their services using the WhatsApp Business API. This enables customers to chat with their bank on WhatsApp when they want to check account balances, view statements, temporarily block cards, or even transfer money to known beneficiaries in some markets. All of this is possible without customers ever needing to go into a physical branch, dial a phone number, or remember the login details for their online access.
Let's consider an example of the customer experience at present:
- When a customer loses their payment card, most banks will require them to contact a call center.
- The agent will ask a few security questions to verify that they are speaking with the right person.
- The customer has to wait patiently while their call is forwarded onto multiple agents to address the situation.
- Even after the customer hangs up the phone, sometimes the issue still hasn't been resolved.
The WhatsApp Business API improves the customer experience significantly by combining the best of digital convenience with first-class service. Customers can easily access their financial information and bank services without downloading an extra app, and they can communicate directly with customer service representatives if they encounter any issues.
Making communication seamless is key to improving customer satisfaction in banking. According to research by Microsoft, a third of banking customers report that poor customer service is the primary reason they would leave their bank, and 80 percent of customers who changed banks said they would have stayed if their problem had been resolved the first time they got in touch. That’s exactly what WhatsApp can solve.
Feeling Secure in Financial Conversations
Security remains a key obstacle for users to embrace digital banking. According to Deloitte, 61 percent of people who don't regularly use mobile devices for financial activities cite security and privacy issues as the primary reason. The WhatsApp Business API helps address these concerns with end-to-end encryption built in and full GDPR (General Data Protection Regulation) compliance.
tyntec's secure data processing framework means that banks using the WhatsApp Business API are compliant with data regulations like GDPR by default. No messages are archived, and communications are processed with encryption and pseudonymization wherever possible so that banks and their customers can be sure they're communicating privately.
In addition, WhatsApp has stepped up verification processes to enhance security. First, setting up a verified Business Profile on WhatsApp means that customers can trust they're talking directly with their bank when they get in touch. A green verification badge shows that the account is official and provides additional contact information, such as a hotline phone number, website address, and other company details. Last but not least, every single business is verified on Facebook/WhatsApp, making sure that these are legitimate companies. All of these mean that customers can feel free to ask questions or raise any concerns and the right person is on the other end to address them.
Improving Customer Engagement
When customers receive a transaction alert through WhatsApp, they know right away that it's coming from their bank thanks to the verification process. This is particularly useful for banks that need to send transaction alerts or double-check potentially fraudulent activity, where a speedy and seamless interaction is necessary to meet customer expectations.
Establishing trust also encourages customers to get in touch for activities they may ordinarily avoid through conventional channels. For example, a customer who wants to find the nearest ATM can easily drop a message to their bank and receive a map indicating where they can withdraw cash.
The WhatsApp Business API makes it easier than ever for banks to meet the high levels of service their customers demand. With end-to-end encryption and full GDPR compliance, people can enjoy the security and privacy of mobile banking directly from an app they know and love. The race is on for banks to join the conversation about how they can better serve their customers through chat.
For further information about using messaging to supercharge customer relations, download tyntec's guides WhatsApp Playbook: Leverage WhatsApp to Future Proof Your CX Strategy and WhatsApp Security & GDPR.