Using analytics to improve self-service
by: Alex Johnson
Financial institutions (FIs) are keenly aware that customer interactions through self-service channels such as ATMs, online, and mobile cost less than person-to-person interactions in the branch or call center. Applying analytic models gives FIs insight to consumer behavior and what drives them to a particular channel. The outcome is the ability to provide a better customer experience and capitalize on cost savings.
To Incentivize or Not, That is the Question
According to research from Javelin Strategy & Research, using remote deposit capture (RDC) capabilities to make a deposit with a smartphone costs as little as four cents. In contrast, it costs banks anywhere from 75 cents to three dollars to process checks through traditional channels.
Given the cost advantages, many financial institutions are looking for ways to incentivize their customers to use self-service channels more and person-to-person channels less. These incentives can range from subtle (signage in the branch promoting their mobile app) to direct (waiving checking account fees for RDC use).
However, what this strategy overlooks is the fact that most consumers don’t need extra incentives to use self-service channels. They are already adopting self-service banking capabilities en masse. According to a recent survey from Mercator Advisory Group, consumers who own smartphones or tablets are just as likely to prefer making deposits via ATMs or RDC as they are to use the branch.
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