Why Voice Technology Is Essential for the Future of Banking

It’s easy to assume that modern customers have moved on from voice technology. However, 71% of your most tech-forward audience — Gen Z — agrees that live phone calls are the “quickest, most convenient” customer service solution, according to McKinsey. One financial services company even reported that this group is up to 40% more likely to call than millennials are.

This is not to say that they or any banking customer will accept slow, outdated, or inefficient systems. With 57% of business leaders expecting call volumes to rise by as much as one-fifth over the next two years, it’s more important than ever to take advantage of advancing voice technology and all its benefits.

Here’s what to know about voice technology for the future of banking and how to leverage it effectively.

The Current State of Voice Technology

It’s clear that in financial services, voice technology is still predominantly human-driven, with AI in the early stages of adoption. However, AI is starting to balance the workload by handling redundant and self-service questions. This enables contact center agents to focus on more complex tasks like assisting customers with achieving their financial goals, such as securing student, auto, or home loans. This collaboration ensures systems are designed to simplify, support, and empower agents' work, rather than being “tech for tech’s sake.”

In response, voice solutions have developed in a few significant ways:

• Integration: The best AI systems integrate into both call center and banking technology for a connected experience.
• Awareness: Contextual awareness creates understanding between customers and AI systems, eliminating the confusion that causes delays with voice technology. 
• Customization: Domain-specific AI can be customized to naturally fit the unique needs and considerations of any customer base — for example, through regional dialogues.
• Languages: Today’s voice technology systems are better able to understand different languages, accents, dialects, and more.
• Speed: Low-latency responses enable quick, engaging conversations without lag.

The latest technology enabling this evolution includes:

• LLM-powered, real-time conversations: Large language models learn from customer conversations to improve each new interaction.
• Improved STT: Speech-to-text technology with emotion support responds more appropriately and effectively, mirroring human interactions.
• More accurate TTS: Fewer accuracy issues in text-to-speech technology minimize frustration and give customers one more way to interact with banking tasks.

Ultimately, today’s financial services voice technology is all about improving on the issues of the past and paving the way for a more accessible, efficient future.

The Evolving Power of Voice

While Gen Z customers have made it clear that voice still matters, it’s equally important to understand what this technology has to offer as it evolves.

Firstly, voice meets callers where they are, integrating naturally across other growing channels including live agent hand-off or SMS accompaniment. Its natural, accessible interaction pattern enables it to respond intelligently to customer needs no matter what and where they are, creating a hands-free, multitasking-friendly solution across devices. Voice technology also complements digital channels like websites and chatbots, creating a more connected, consistent experience for users and increasing ROI across these channels.

Top benefits include:

• More engaging interactions: Real-time, natural-sounding conversations with low-latency responses allow customers to engage in more authentic ways.
• 24/7 support: Voice technology is available whenever, wherever your customers need it.
• Personalized responses: Generative AI enables tailored, personalized responses that eliminate the repetitive back-and-forth of other automated chats.
• Self-service capabilities: Customers can address their own needs, freeing up staff for higher-level tasks.
• Robust analytics: Powerful insights and analytics through an easy-to-use portal enable your bank to learn from every interaction.
• Security and compliance: Voice can help ensure data security and compliance with industry regulations.

Overcoming Common Challenges in Implementing Voice AI

To take advantage of voice technology and its many benefits, it’s first necessary to implement this solution — and for many financial institutions, that’s easier said than done. Top challenges include:

Integration Snags

• Challenge: Difficulty integrating with existing systems.
• Solution: Partnering with an experienced vendor who has successfully managed similar integrations.

Rigid Flows

• Challenge: Voice AI requiring exact phrasing or phone tree navigation.
• Solution: Using conversational, intelligent bots that understand natural language and provide flexible interactions.

High Latency

• Challenge: Slow response times affecting user experience.
• Solution: Employing domain-specific partners with optimized solutions tailored for financial institutions.

Change Management

• Challenge: Adapting to new technologies and processes.
• Solution: Implementing effective change management strategies and ensuring continuous training and support.

Security and Compliance

• Challenge: Ensuring data security and regulatory compliance.
• Solution: Using robust security measures and working with vendors who prioritize compliance and data protection.

Don't Let Voice AI Be Hard: Posh Makes It Easy

There’s a way to capture the benefits of voice AI without stumbling on every challenge — and that’s with a partner like Posh.

Our top AI solutions enable better experiences, seamless integration, and fast time-to-value:

• Voice Assistant: 24/7 customer service via real-time, natural-sounding conversations integrated seamlessly with existing systems.
• Digital Assistant: Fast, accurate solutions for routine inquiries and tasks, promoting self-service and freeing staff for more complex issues.
• Knowledge Assistant: Instant information access for improved efficiency and response times.

Together, these solutions offer a multifaceted solution to contact center challenges, transforming customer and agent experiences simultaneously — and increasing efficiency and overall operational effectiveness along the way.

To learn more about how our AI solutions unlock the synergies of internal and external AI in banking, read more here.