Why are so many customers choosing mobile to manage their money?
At one time it would have been unimaginable to have access to all of your finances on a 7” screen, never mind from the comfort of your home, 24/7/365, anywhere in the world.
But that’s exactly what we’ve brought to our customers. We’ve put the power of finance in people’s hands: from paying in cheques, to seeing all your money in one place, right through to applying for finance – customers have complete control of their finances in ways that just weren’t possible when relying solely on branches.
Technology has undoubtedly played a huge part but – above all – customers’ preferences for ease, convenience and safety has made mobile banking the success it is. People now use their banking app just like they use their Amazon, Sainsbury’s or Just Eat apps. That’s good for customers and it’s good for banking competition.
Mobile makes the customer experience more personalised too and alerts is just one of the ways we do that. Last year alone, we delivered over six billion alerts to customers and by 2025, we’re aiming to grow that number to 10 billion alerts each year.
An example that helped put more money in people’s accounts was targeted notifications to customers letting them know they could benefit from a higher interest rate on their savings. With a changing interest rate environment in 2023, this really helped us reach customers in a way that traditional banking methods couldn’t – and make many customers better off.
How is Lloyds Banking Group driving innovation in mobile banking?
We’re leading the way when it comes to mobile. At the heart of our strategy is a brilliant platform that brings together data, analytics, machine learning and artificial intelligence. In other words, combining these capabilities means we can roll out the latest features and developments to customers – quickly.
One of the innovations we’re most proud of is conversational banking – or our mobile messaging capability. Right now we have around 150,000 in-app chats happening each week. Those chats might be with our robo-advisers or passed on to one of our colleagues.
Part of innovation is learning what works and what doesn’t; and we’ve learned a lot in this space. When we rolled out mobile messaging, we found some of our customers were leaving chats when they weren’t getting the response they expected. It meant they then had to phone us to get an answer to their query.
We soon realised this was because their question wasn’t properly understood. So we looked to technology and innovation for an answer.
We put in place an AI solution that would help improve the app’s understanding of the questions being asked by customers (known as a Large Language Model Classifier for the technical readers among us!).
This helped us respond more accurately and we’ve already seen improvements. More customers are now able to have their questions answered in mobile messaging, first time, without needing to call us.
Mobile messaging in banking will develop massively in the months and years ahead and we’re at the forefront. We’re currently on track to generate an incredible 12 million mobile messaging interactions with our customers annually by the year 2025.
But it doesn’t stop there. We’re refreshing our apps and introducing brilliant new features which will be great for our customers. More on that later this year.