It is no secret the financial market is going through a tough period. Global inflation is continuing to rise, but what does this really mean for businesses?
UK-based RegTech firm Aveni has released a new report exploring how businesses can reduce costs in a high inflation environment.
It stated that in a high inflation environment, financial firms often see a decrease in efficiency. This is caused by an increased number of vulnerable customers that need to be managed. When combined with decreasing margins, it is a tough environment for companies, it said.
As a result, Aveni highlighted the importance of a company to examine the operating model and see where efficiency can be made.
One solution it offered is to review which of the company’s processes could be improved through automation. It said, “These types of software can be vital in allowing you to lower your total cost base, while also increasing your visibility and coverage, providing additional insight that can help you to scale up your overall performance and decrease regulatory scrutiny.”
By leveraging automatic machine assessment of client interactions, firms receive a rich source of data to feed back into product and service development, agent training and overall improvement of your customer experience.
The UK’s FCA has had a keen focus on ensuring vulnerable customers are treated fairly. With the number of vulnerable customers set to rise, Aveni pointed to automatic machine assessment for support.
It stated that this technology will automatically flag calls with high-risk categories for review. It added, “In a high inflation operating environment, this is crucial. Compounding this with the fact that the FCA is demanding data-first evidence of good outcomes for customers across an entire lifecycle of a product and services, technology suddenly goes from being a ‘nice to have’ to crucial.”
Aveni stated there are three options firms have when handling the increased level of vulnerable customers. The first is to do nothing and continue until they become untenable. Option two is to hire more staff to increase coverage. Finally, they can automate the QA process to achieve complete coverage, ensure agents are focused on the highest value activities and ensure comprehensive risk oversight and evidence for the regulator.
It pointed to its own Detect platform as a great solution to the problem. Its platform is designed to take information from various sources, such as customer calls, emails and CRM, and build a complete picture of customer interactions and flag issues. This ensures staff can quickly resolve issues and identify trends in customer behaviours across demographics, helping improve product personalisation.
It added that typical quality assurance processes are costly and inefficient, with only 1-2% of customer interactions being assessed. An automated system means 100% of interactions can be assessed.
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