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HOW FINANCIAL SERVICES PROVIDERS CAN CAPITALIZE ON EMERGING CX TECHNOLOGIES

This new era of opportunity is without question redefining customer experiences 

and expectations. Just consider the rising generation of millennial consumers—the 

largest in U.S. history—positioned to drive the market forward. Research shows that 

63 percent of these consumers don’t own credit cards, 27 percent would consider 

doing business with a digital, branchless bank, and over one-fifth have never written 

a physical check to pay a bill. It’s no wonder this group is touted as the “unbanked

generation.”

With more intelligent, adaptive and connected capabilities comes greater demand 

for quality, agility and speed. In today’s smart, digital world, consumers expect 

nothing short of a sophisticated banking experience that meets their evolving 

needs. This could mean an integrated mobile banking app that conducts real-time 

spending analyses to offer personalized money management strategies. It could 

also mean leveraging big data to conduct behavioral analytics that drive 

anticipatory engagement. 

This whitepaper will explore these scenarios and more - discussing how FSPs can 

achieve high-impact digital transformation by leveraging technologies such as 

video, biometrics, artificial intelligence, augmented/virtual reality, and analytics. 

The paper will give clear use cases on how these technologies are being used today 

by financial institutions as well as the derived value both to the Financial Service 

Provider as well as to the customers they are serving.

TABLE OF

CONTENTS

Cashing in on Video for 

Financial Services .....................2

Biometrics: Using unique 

identifiers for seamless 

authentication ............................4

Artificial Intelligence: Ripe for 

FSP Investment  ........................4

The Very Real Benefits of 

Augmented/Virtual Reality  

for Financial Services .............. 7

The Massive Payoff of 

Analytics for FSPs ....................8

Conclusion ................................. 10

Today’s world of financial services looks incomparable to that of 30, 20 or 

even 10 years ago. We live in a world today where ATMs can automatically 

detect unauthorized card users via built-in facial recognition. Where an 

estimated 200,000 consumers use Bitcoin, a form of cryptocurrency, in lieu 

of cash. Where algorithm-driven machines can autonomously act as 

financial advisors. The financial services market has evolved to a point 

where virtually anything is possible; the unthinkable is being achieved, and 

the customer outcomes are seemingly endless.  

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Nearly 70 percent 

of millennials  

now use mobile 

banking, with 

lenders like  

Bank of America 

boasting over  

17 million active 

mobile users.

Cashing in on Video for Financial Services

The concept of video may not be new, but the technology has rapidly sophisticated 

to a point where it is today a pervasive part of everyday life. Today, we live in a 

world where nearly 3 million YouTube videos are viewed per minute, and movies 

can be filmed entirely on smartphones. 

Naturally, video has also evolved as a transformative tool for customer service and 

engagement. From Amazon’s live video support service “Mayday” to Facebook’s 

video streaming feature “Facebook Live,” companies are now strategically 

leveraging video to engage more deeply with followers and deliver more contextual 

customer experiences. 

Video has emerged as an integral tool for FSPs to flexibly grow and adapt amidst 

inevitable market change. To this end, below are three chief ways FSPs can 

capitalize on video to meet the next-generation needs of customers today and in 

the future: 

1.  Mobile video service escalation: Nearly 70 percent of millennials now use 

mobile banking, with lenders like Bank of America boasting over 17 million active 

mobile users. Many FSPs are working to make video an essential part of the 

on-line and mobile banking experience by enabling customers to seamlessly 

escalate mobile service interactions to video if and when needed or desired.  A 

clear use case is if a customer is having difficulties determining what their 

monthly payments would be on the FSP’s mortgage calculator, they could initiate 

a video call with a specialist - who through co-browsing - could help the client 

quickly and easily with their calculation and any other inquiry that customer 

might have.

2.  Video insurance claims: Video can be invaluable for documenting vehicle or 

property damage to file a claim. In this way, insurance providers would enable 

customers to initiate a video conference session with the touch of a button 

anytime, anywhere via any device (i.e. smartphone, tablet, smartwatch). This 

immediate and ubiquitous access is what will enable a driver to document 

damage while standing beside his vehicle. It’s what will allow a homeowner to 

share real-time video of her flooded basement from the staircase. With the use 

of video, insurance providers can work to settle claims very quickly after the 

incident. 

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3.  Video-enabled ATMS/kiosks: As the number of physical bank branches drops, 

video-enabled ATMs/kiosks have emerged as an ideal solution for FSPs to 

enable face-to-face communication at a fraction of the cost of traditional tellers. 

Consider Bank of America: between 2013 and 2015, the number of national BoA 

branches dropped by 10 percent and the company’s workforce declined by

nearly 16 percent. During that same time, the company began introducing its 

new ATM with Teller Assist, touted as “next-generation banking [that] combines 

the technology and convenience of an ATM with the human touch of a teller.”  

In short, video is a clear way for the FSP to deliver a more personalized level of 

service through their digital channels. With Avaya Oceana (our innovative multi-

touch contact center solution) and/or Avaya Breeze (our flexible Application 

Development platform), FSPs can quickly and easily enable WebRTC voice and 

video calls from any of their mobile and on-line applications. Complete with 

co-browsing and content sharing, FSPs can ensure that client transactions can be 

completed efficiently and in real-time; closely replicating the experience found in a 

physical branch.

Avaya also offers a range of end points from VTMs, to kiosks to video conferencing 

systems that can help FSPs extend the reach of certain specialties (such as wealth 

management) in a much, more cost effective way that staffing those experts in each 

and every branch location.

Image 1: Avaya Video Solutions

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Biometrics: Using unique identifiers for seamless authentication

Today’s methods of authenticating users through the contact center and through 

mobile and on-line applications are a clear source of frustration for users.  

According to a study by Nuance, 85% of users express frustration with existing 

authentication methods (PINs, passwords, card numbers) - while 67% of mobile 

users have to reset their passwords once a month. 

Today, voice biometrics has been implemented by a number of FSPs in order to 

offer a very quick and seamless way to authenticate clients calling into the contact 

center. With the massive uptake in digital transactions, voice in addition to other 

biometric solutions - in the form of palm, fingerprint, iris, vein and facial-recognition 

- are also emerging in mobile applications, smartphones and ATMs.

Consider Wells Fargo who won an industry award by combining multiple biometric 

characteristics (simultaneous facial and voice recognition) to enhance security. 

They also offer an alternative authentication method for their mobile application 

based on an eyeprint ID. In both cases the authentication process takes less than 15 

seconds to complete, making the mobile service easier and faster to use.

In the United Kingdom, the Lloyds Banking Group’s subsidiary, Halifax Bank, has 

started to test the use of biometrics via wearable devices. It is currently testing the 

use of electronic wristbands that detect the wearer’s unique heartbeat patterns. 

The wristbands work in conjunction with smartphone apps that verify the heartbeat 

patterns so individuals can be granted access to their bank accounts.

Because biometric identities are next to impossible to fake, these technologies will 

play a critical role in securing digital transactions and protecting the FSP as well as 

their clients from fraud. Due to the importance of this technology, Avaya has been 

integrating biometric technologies from leading vendors, Nuance and Verbio, into 

its customer experience solutions. 

Artificial Intelligence: Ripe for FSP Investment

Artificial intelligence (AI)—intelligence exhibited by machines—has gone from a 

futuristic concept depicted in literature and film to a very real development that is 

transforming every task, process and workflow imaginable. 

According to a 

study by Nuance, 

85% of users 

express frustration 

with existing 

authentication 

methods (PINs, 

passwords, card 

numbers) - while 

67% of mobile 

users have to reset 

their passwords 

once a month.

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AI represents a new frontier for FSPs as they radically shift to meet next-generation 

customer needs. At the same time, research shows that the use of robots for 

financial services can reduce costs by up to 80 percent and reduce time to perform 

tasks by up to 90 percent. Below are a just few ways that the industry can (and 

should) uniquely capitalize on AI to reap these benefits:

1.  Intelligent Chatbots: Chatbots—virtual, conversational agents—are breaking 

ground as a new way for FSPs to engage with customers through instant 

messaging - a customer service channel that boosts very high levels of 

satisfaction (73% compared with 60% for email and 44% for phone). Chatbots 

can be leveraged in web chat and SMS-based communications as well as in 

hugely popular social messaging platforms such as Facebook Messenger, 

Twitter, What’s app, etc. 

  Consider Mastercard: the company is currently piloting its new chat bot—

Mastercard KAI—on Facebook Messenger. Built on conversational AI, the bot 

uses chat, messaging and other natural language interfaces to intuitively 

communicate with consumers. Users can ask the bot questions about their 

accounts (i.e. “Am I close to exceeding my monthly transfer limit?”), review 

purchase histories (i.e. “How much did I spend on lunch today?”), and even 

receive personalized offers via integration with Mastercard’s “Priceless” 

experiences initiative. 

2.  Virtual Assistants: Today, it’s commonplace to engage with AI-enabled virtual 

assistants like Apple’s Siri or Microsoft’s Cortana. In keeping with this trend, 

many Financial Service Providers are also integrating Virtual Assistants into their 

mobile applications. With the benefit of simple, hands free mobile banking, 

customers can leverage the virtual assistant to handle multiple tasks such as 

reviewing account information, transferring funds, paying bills and applying for 

loans - all while on the go. In a study conducted by Nuance, the addition of a 

virtual assistant to a mobile app has been shown to increase NPS scores 

(measurement of a customer’s willingness to recommend a company to others) 

by 33%.

  ING Netherlands was one of the first banks in Europe to introduce their own 

personal banking assistant called Inge- which delivers a true human 

conversational experience that speaks, listens and understands in order to help 

customers with their banking. 

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3.  Robo-advisors: These automated, digital wealth management solutions are 

nothing short of revolutionary for the financial services industry. In fact, the 

digital advice market is expected to be worth an estimated $500 billion by 

2020. Using AI, banks can create these intelligent machines to uniquely advise 

customers on everything from their various accounts (i.e. bank, trust, brokerage) 

to auto and home investment to personalized savings approaches. In fact, a 2016

KPMG study found that about two-thirds of customers find these robo-advising 

features attractive. The benefit to the FSP is the ability to extend wealth 

management or investment services to a broader group of clients since it would 

offer increased accessibility through low or no minimums and fees .

  Avaya has fully embraced Artificial Intelligence and offers the ability for FSPs to 

enable intelligent chatbots for SMS, webchat and social messaging platforms 

(Facebook Messenger, Twitter, WeChat, Kik, etc) very quickly and easily. Over 

time, as the machine learning continues to collect data, the chat bot in turn 

“learns” more about the business and can become more versatile. If the chat bot 

is ever challenged, a live agent can quickly and easily take over. Calls to be 

escalated from chat bot to live chat to voice or video in a seamless way that 

allows context to be fully preserved. 

  In addition to chat bots, Avaya, along with its technology partner, also has 

developed Noor, a personal banking assistant that can check personal finances 

in real-time, assist with banking transfers and help its customers make financing 

decisions about large purchases.  Noor, and assistants like it, will have the ability 

to simplify customer engagements through their ability to bring the right 

information, at the right time to help customers achieve what they want in simple 

and personalized manner – while on the go.

Image 2: Avaya’s Virtual Assistant, Noor, helping a client with a car loan.

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The Very Real Benefits of Augmented/Virtual Reality for Financial Services

Augmented reality (AR) and virtual reality (VR)—technologies that alter or simulate 

real, physical environments—have revolutionized the world and the way we live in it. 

In today’s classrooms, for example, students can now go on virtual field trips across 

the globe without ever having to leave their desks. 

In today’s world driven by digital experience and engagement, AR and VR represent 

ample opportunity for FSPs to anticipate customers’ ever-evolving needs. In fact, 

Goldman Sachs believes the AR/VR market will be worth $80 billion by 2025. To 

this end, the scenario below represents how FSPs might be able to implement AR 

and VR to support the future of the customer experience:  

1.  Augmented Reality: Without question, tech-savvy millennials represent the 

future of the customer experience. AR/VR technology is among the few hot 

solutions that can boast awareness with this generation. Thanks to the explosion 

of apps like Pokémon Go, even today’s youngest generation is familiar with 

Augmented Reality – where the real world is blended with computer generated 

features.  Consider Westpac New Zealand who was the first FSP to release a 

banking application for account management using augmented reality. It 

leverages 3D imagery to portray credit and debit card balances, spend habits, 

payment schedules, hotpoints® balance and the location of Westpac NZ branch 

and ATM’s.

2.  Virtual Reality: Goes a step further by completely immersing the user in a fully 

virtual world that is separated from the real world. The gaming industry’s early 

attraction to VR has created a crowd of early adopters, who could help 

evangelize the adoption of VR in banking and in other industries. 

  As much as the millennials know about VR and gaming, research shows that they 

know far less about investment and wealth management than preceding 

generations. A 2016 Harris poll, for example, found that 80 percent are not 

invested in the stock market, 40 percent believe they don’t have enough money 

to do so, and 34 percent don’t know how.  

  Using VR headsets, for example, millennials can be immersed into a simulated 

world where they could interact with virtual, age-progressed versions of 

themselves. In fact, according to research from Stanford, consumers that are 

shown a digitally-altered version of themselves - using VR technologies - at 

retirement age become willing to put twice as much money into long-term 

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savings accounts. VR technology is also very well suited for complex data 

visualization so there are also opportunities to provide complex charts and data 

in 3D to simplify information in the areas of investment banking, wealth 

management and retirement planning.

Avaya believes that AR/VR technologies will gain significant traction over the next 

5-10 years and could represent an interesting channel for FSPs to differentiate their 

services and gain broader appeal from millennials and younger consumers. Avaya is 

working with Berlin based VR specialist EXP360 to integrate VR technology directly 

into its customer experience solutions. 

The Massive Payoff of Analytics for FSPs

The amount of data that has been produced, consumed and shared over the last 

decade is nearly insurmountable. In 2016 alone, 2.4 million Google searches, 700 

million Facebook logins and 150 million emails were occurring per minute. Overall, 

research shows that 2.5 quintillion bytes of data are generated each day—enough to 

fill 10 million Blu-Ray discs that, when stacked, would stand four times as tall as the 

Eiffel Tower. 

To this end, businesses across every sector are working to rapidly analyze large 

data volumes to reimagine business outcomes and CX possibilities. Big data 

represents the epicenter of today’s smart, digital world; it’s the origin point of 

limitless opportunity and unthinkable disruption. 

We can see this clearly in financial services, where over 70 percent of financial 

institutions believe that the use of analytics allows them to create a competitive 

advantage. With data volumes growing at an ever-accelerating pace, below are just 

two of many ways that FSPs can strategically use analytics to drive next-generation 

customer experiences:

1.  Intelligent routing: At this point, it goes without saying that next-generation 

customers will not tolerate poor service. A 2015 study from Parature, for 

instance, shows that nearly 70 percent of customers have stopped doing 

business with a brand due to a poor service experience, consisting of everything 

from unfriendly or unknowledgeable agents to long wait times to high transfer 

rates. 

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  With the ability to collect, measure and share real-time and historical interaction 

data across all teams, processes and customer touchpoints, banks can develop 

learning algorithms that bring intelligence into the routing selection to help 

eliminate these common customer frustrations. In this way, banks can expertly 

match customers with the right resources based on such variables as personality, 

emotion and call outcome. Supported by an analytical model, customers will 

virtually never have to repeat the same information or be transferred to multiple 

workers to resolve a problem. 

2.  Predictive self-service: Self-service has evolved over the years from a luxury to 

an imperative. By honing in on data collected through self-service channels, FSPs 

can proactively adjust customers’ brand journeys by effectively predicting the 

success of specific outcomes. For example, historical analysis may tell a bank 

that a customers’ use of its online calculator tool leads to high risk of 

abandonment. As such, the bank may want to work in simplifying the tool or 

having a click to call button so users can connect to a live agent as needed.

To support FSPs in converting their massive amounts data of into true actionable 

insights, Avaya has developed Oceanalytics. This flexible analytics platform offers a 

unified, cradle to grave view of customers across all relevant sources, providing not 

only real-time information and historical trends but also predictive analytics. This 

consolidated view of the entire customer journey across all channels will give 

financial services companies the insights not only to drive timely more personalized 

engagements, but can also assist with compliance (Know Your Customers 

Regulations) & fraud detection.

Account Performance

Account 1

Account ID

100214

100215

Channel

Voice

Email

Offered

17

1

Completed

2

0

Avg Active Time

2

0

Avg ACW

2

0

Abandoned

2

0

Conferenced

2

0

Transfers

2

0

Account 2

Account ID

100216

100217

Channel

Voice

Email

Offered

17

1

Completed

2

0

Avg Active Time

2

0

Avg ACW

2

0

Abandoned

2

0

Conferenced

2

0

Transfers

2

0

Account 3

Account ID

100218

100219

Channel

Voice

Email

Offered

17

1

Completed

2

0

Avg Active Time

2

0

Avg ACW

2

0

Abandoned

2

0

Conferenced

2

0

Transfers

2

0

63%

Total Voice

30%

Total Emails

7%

Total Chat

Marcel Naegelkraemer

Avaya Oceananalytics

Agent ID: 733077Station ID: 1107

Ready

John Smith (125542233)

AccountView:

DD MM YYYY HH:MM:SSDD MM YYYY HH:MM:SSUTCTimezone: 15 minsIntervals:Stats from: toSupervisor Name: Milo Miller Supervisor ID: 56665548885

Average Active Time

00:15:00Availability

100%Escalations

100%

Channels

ConsultsOffered Abandoned Not answered Conferenced

Account by Agent Counts

0

20

40

60

80

100

120

140

160

180

Account 1Account 2Account 3

Image 3: Avaya Oceanalytics

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Conclusion

Choosing the right customer experience platform, one that is open, agile and 

integrates these innovative technologies, is critical in meeting the needs of the 

smart, digitally savvy consumer- both today and tomorrow.  Avaya’s Oceana 

represents a true integrated multi-touch contact center solution that supports all 

channels (voice, video, SMS, chat and email) with the ability to take advantage of 

leading Customer Experience technologies such as Biometrics, Artificial 

Intelligence, Augmented/ Virtual Reality and Powerful Analytics. Customers can 

transition from channel to channel seamlessly – while agents are offered a single 

view of their customers, their journeys and related context, both “in the moment” 

and past. 

Because Avaya Oceana is built on upon an Application Development Platform, 

called Avaya Breeze, fast moving financial services organizations can create custom 

applications and automate workflows quickly and easily - ensuring that they can 

keep pace with evolving customer needs – and remain one step ahead of the 

competition.  Open API’s ensure fast and easy integration into the FSP’s back office 

systems (CRM, payment systems, 3rd party analytic tools, etc) and a broad range of 

reuseable snap-ins through the Avaya Snap Store ensure quick and easy 

development of rich communications services.

In short, Avaya, as the leader in the Gartner Contact Center Magic Quadrant for 16 

consecutive years, offers the innovative solutions to help FSPs transform their 

customer experience capabilities and embrace their digital transformation 

strategies.

To learn more please contact your Avaya representative or visit www.avaya.com.