Keeping Up With Consumer Expectations in the Financial Services and Insurance Industries

By Drew Sickler

Every industry will experience change.

Most brand-new cars don’t have roll-up windows anymore. Televisions aren’t the size of a dryer and when is the last time you used a DVD player?

Even from only a decade ago, there’s a shift around meeting customer expectations in the financial services and insurance industries.

Technology has grown, social media allows customers to quickly share their experiences with companies and of course, like with any industry, Artificial Intelligence (AI) is becoming more and more embedded in how we utilize services.

From the aspect of shifting needs and expectations, the overall marketplace has seen some positive changes.

But we have to adapt to any sort of needs when it comes to emergencies, and we also need to figure out how institutions are going to have to shift for the needs of customers for the digital experience.

How will we see that innovation transition? AI may be the most important technology breakthrough since the Internet itself, and both the financial industry and the insurance industry will need to adapt, not just externally, but internally as well.

We’ll be seeing more of a demand at meeting customer expectations in the coming months and years, and this is where AI can be a friend.

Security Concerns in the Financial Services and Insurance Industries

Clients of both industries, for the most part, see fraud issues, loss of personal data and identity theft as things to be extremely concerned about.

Companies will need to take security even more seriously than they do now. Some already do, with the creation of the Einstein One platform by Salesforce.

Einstein One is remarkable in that it can create a filter using Large Language Models (LLMs) to audit processes and flow of business transactions and information gathering.

The platform can be used to filter out certain types of questions to get more truthful type of statements, like who may win the U.S. election this year.

JP Morgan is taking security more seriously than ever as well. Late last year the financial services company started using its own LLM to detect fraud and look for patterns in emails and compromises in transactions.

In adopting AI early, companies like JP Morgan that really understand what the capabilities are already ahead of the game.

Hesitation On AI-driven Solutions

There are those that are still reticent. An estimated 25 per cent of banks haven’t really started investing in AI solutions. Perhaps they aren’t sure of it or maybe some are concerned about job loss. But anyone with those concerns should realize that AI won’t necessarily replace them, rather, it could replace the nature of the jobs. It’s about how individuals will incorporate this type of technology.

AI offers several advantages that will benefit the insurance industry and its clients. It offers the ability for seamless conversations across multiple channels between agents and clients.

AI also offers value-shared data, which allows for more personalized policies and experiences, even through a digital transaction. That increases trust and the likelihood of customers voluntarily sharing data in the future.

It will also make things easier and insurance companies have always wanted everything to be as seamless as possible.

Anyone who has gone through filing a claim knows how it can be in the past. AI is highly transactional and can make everything so much easier to understand.

Technology’s Impact on Corporate Bottom Lines

Of course, the financial industry has posted some of the highest profits over the last few years, and one could be forgiven for asking if fees may go up.

After all, those retirement funds and stock options don’t manage themselves. Fees won’t necessarily go up, but margins could increase over time, simply because of corporate investment in AI.

It could have a big impact on corporate bottom lines because in using the technology, companies need to have more current and comprehensive data for planning and execution.

It will coincide with how much of a return on investment they’re looking to create.

The shift is real.

Eventually we’ll see the rise of generative AI and we’ll realize what it means, not just for individuals but for organizations line the Securities and Exchange Commission or for international trade organizations.

We need to concentrate on freeing ourselves to do more and at the same time, being certain of our safety and security.