February 24, 2022
Credit Union

Conversational AI: The next generation of credit union customer service

91% of online banking customers prefer to use an app over visiting a branch. (Citi)

When looking for answers to simple questions, 74% of consumers prefer to use chatbots, and 65% of consumers feel comfortable handling issues without a human agent.

These statistics reveal some not-so-secret consumer intel -- Millennials and Gen Z are all in on technology. And in a post-pandemic world, even Boomers are, too. 

Businesses are consistently challenged to adapt to technology and the generational needs of their target markets. This has never been truer for credit union member service departments in 2022, as consumers expect technology to solve their problems 24/7. 

Luckily, chatbots can do just that.

Credit union customer service is at the center of chatbot buzz this year, as many credit unions commit to chatbot technology to provide better service for their loyal members. The resistance to chatbots has all but dissolved, pointing to an industry shift that credit unions everywhere are embracing.

In this article, you will discover:

  • How chatbots powered by conversational AI make it possible for credit unions to offer personalized service that is fast, efficient, and accurate.
  • How older generations have warmed up to chatbot technology considerably, especially in a post-pandemic society.
  • Why consumer trends have made it necessary for credit union customer service departments to implement chatbot technology.

Download our 2022 Trends Guide for the latest research and insights into how chatbots are revolutionizing the way industries everywhere approach their customer service. Discover why businesses use chatbot technology to keep their customers happy and improve internal operations. Download the guide HERE.

Keep reading to learn more about how generational trends in society and technology point to a new standard of credit union customer service through the utilization of AI-powered virtual agents.

New technology = new standards for customer service

Historically, credit unions have resisted chatbot technology due to conflicting values between maintaining personalized services and the seemingly cold, distant processes presented with chatbot automation. 

Understandably so, credit unions have held off on implementing this technology to avoid pushing away members. Now, the tide has shifted. If credit unions don’t implement AI technology as part of their customer service, they may lose customers due to lack of efficiency.

A new generation of chatbots 

For a busy credit union customer service department, a chatbot is an invaluable resource since it can quickly and easily manage standard to intermediate inquiries, like account status or balance, while human agents focus on the more complex or nuanced customer requests.

The problem with Gen 1 chatbots is their inability to go both deep and broad with their inquiry understanding and responses. Luckily, Gen 1 chatbots have come a long way since their genesis, and conversational AI is to thank. 

With conversational AI, chatbots have evolved significantly to the point where they can accurately detect search intent, review customer history, and make specific suggestions based on the customer’s unique needs. 

If at any point the bot runs into a limitation, it can transfer the inquiry to a human agent from within the same chat panel for a seamless, unbroken experience. 

Today’s virtual agents are far stronger than Gen 1 chatbots. When done right, they have the ability to scale and deliver accurate results – which ultimately leads to sky-rocketing resolution rates. Take, for example, our work with MSUFCU and how boost.ai’s virtual agent yielded impressive results in just 4 weeks.

Case study: MSUFCU

In 2020, boost.ai teamed up with MSU Federal Credit Union to develop and launch a virtual agent pilot project in just 10 days. The primary goal was to provide critical internal support for customer-facing employees with a virtual agent that is able to respond in real-time with consistent, accurate, and immediate inquiry assistance. 

Using our no-code conversational AI platform, MSUFCU seamlessly integrated a virtual agent into their existing knowledge base system. Thanks to our pilot program, MSUFCU successfully automates approximately 2000 employee-to-employee interactions each month through their internal virtual agent, and achieves an over 90% resolution rate through their external-facing virtual agent.

Read the full case study HERE.

The next generation of tech-savvy customers

According to Pew Research, 39% of Millennials, 33% of Gen-Xers, and 24% of Baby Boomers use mobile payments to shop, pay bills, and send or receive money.  

Long gone are the days of consumers wanting face-to-face, personalized customer service interactions. Consumers value the efficiency of getting a task accomplished quickly – and it doesn’t necessarily matter if that comes from the help of a human or virtual agent. 

Let’s look at the latest generational trends that point to the shifting tide of acceptance towards chatbots, if not the expectation that one will be available.

Boomers

Although Millennials and Gen-Xers are the most well-versed in online banking and using mobile technology to shop and spend, Boomers aren’t far behind.

88% percent of baby boomers agree that technology helped them during the COVID-19 pandemic, which is only 3% lower than agreement among younger generations. Additionally, 72% of Boomers use more digital technology to accomplish daily tasks now than they did before the pandemic.

Gen-X

According to Pew Research, 83% of Gen-Xers own a smartphone – just 7% behind Millennials. Gen-X technology trends are now comparable to Millennials, and we often see these two generations displaying similar adaptive attitudes to new technologies, with Millennials being only a step or two ahead of their Gen-X counterparts.

Millennials

According to Forbes, chatbots appeal to Millennials because they offer the best of self-service, along with instant gratification and convenience. Millennials prefer to solve problems on their own when and where possible, especially when technology is involved. Credit union customer service chatbots give Millennials the instant resolution they expect, all from one self-service platform.

Gen-Z

Consider that Gen-Z has grown up with technology from the time they were born. This has a significant impact on how they utilize online services and respond to poor customer service experiences. 

According to Business Wire, Gen Zer's are 60% more likely than the average consumer to hang up the phone if their call isn’t answered in 45 seconds. Gen Zer's are also far more likely than Millennials to stop supporting a brand or product if they experience poor response times online. 

Gen-Z values instant access and response times, as well as the similar instant gratification that Millennials are accustomed to. However, there is the added curveball of ensuring brand loyalty when Gen-Z is quick to cut off brands that don’t align with their values. 

Credit union customer service chatbots offer the instant access and problem resolution that appeals to Gen-Z, as well as the unique, personalized, and brand-driven service they expect.

Amplify your credit union customer service with boost.ai

Boost.ai is a leader in chatbot technology powered by conversational AI. We help revolutionize credit union member service departments by implementing technology that is scalable, reliable, and exactly what members  expect. 

In addition to credit unions, boost.ai has helped banking, telecommunications, insurance, e-commerce, and many other industries offer the instant, accelerated, and accurate customer service they need to meet demands and maintain customer satisfaction. 

Further reading

For more information on how customer service departments benefit from chatbot support, check out the following resources:


Interested in learning more about how conversational AI can transform customer service? Click here to connect with one of our team members now!

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