How to choose the right IVR system for your banking business?

IVR systems, self-service options, Call deflection, and automation technologies can drastically reduce the work pressure on bank employees and maximize operational efficiency. The time has come for customer support agents to use automation’s power through IVR in the banking industry.

In this blog, we discuss what an IVR system is for banking, how to choose the right  IVR system for banking business, and the detailed usage and benefits of IVR technology.

What is the IVR System for Banking?

Interactive voice recognition (IVR) software allows a computer or intelligent device to interact with humans. Businesses can communicate more effectively with customers by using computers instead of agents.

An Interactive Voice Response (IVR) system in the banking business allows customers to interact with the bank’s telephone system through their keypad or voice commands operated by the computer-based system.

IVR can fully automate your banking phone system and perform many tasks without human assistance. Banks often use this system to handle customer calls and inquiries in an automated way, which is accessible via a dedicated phone number.

IVR communication feature can help banks and their customers with self-service options for various banking and finance-related tasks, including account balance inquiries, financial transaction history, records of bill payments, transferred funds, status of a loan or credit card application, and lost or stolen card reporting.

This allows the bank’s customers to have a convenient way of handling their banking needs without the need to visit a branch or speak with a representative.

Types and features of IVR for banking

I. Cloud and on-premises

In IVR technology, existing telephone systems are integrated with an on-site system, usually maintained and operated by the bank’s IT department.

In Cloud IVR, external vendors host and access the IVR services through cloud computing. Many banks prioritize hosted IVR because it is scalable, offers more functionality, and saves money since it is maintained by the vendor.

II. Recognition of speech

Consumers use the phone touchpad to input information into a basic IVR system. Other IVR platforms have built-in speech recognition. Consumers reply to questions; the conversational IVR system can recognize and interpret these responses.

A conversational IVR is preferred by banks with departments such as credit cards, loans, insurance, and so on because of the convenience it provides, which heightens convenience.

III. Integration

IVR platforms allow banks to integrate their existing databases, websites, and CRM systems. Through such IVR call center integrations, bank representatives can access the customer’s credit history and details. As a result, banks can maximize personalized customer service.

IV. Analytics

Smart IVR systems provide banks with analytics that enable them to understand consumer behavior and take appropriate actions. Data can be compiled and presented in dashboards on these platforms.

The integration of IVR enables the identification of bottlenecks and reasons for service escalation. Using IVR, calling journeys can be optimized, and digital pathways can be added to make the experience more convenient and enhance the user experience.

How to choose the right IVR system for banking business: Important features to consider

• Security and Compliance: Ensure the system meets industry regulations for data privacy and financial information security.
• Ease of Use: The IVR should be clear, concise, and easy for customers to navigate, even for those unfamiliar with the technology.
• Self-Service Options: Look for features that allow customers to complete tasks such as checking balances, transferring funds, or reporting lost cards without needing a live agent.
• Natural Language Processing (NLP): This allows users to interact with the IVR using natural speech instead of limited button presses, making it more intuitive and efficient.
• Call Routing: Based on the customer’s needs, the IVR system should route calls to the most appropriate department or agent.
• Multilingual Support: Consider an IVR with multilingual options if your bank caters to a diverse clientele.
• Integration with CRM: If your bank wants personalized service and quicker issue resolution, a seamless CRM integration IVR system should be considered.

IVR Technology benefits for Banking business

1. Customized or Personalization

Banking organizations can customize greetings, messages, and prompts based on the nature of the call and the type of consumer. IVR applications with pre-recorded IVR scripts make this simple to implement.

2. Information or Updates

Banks use IVR to communicate important updates. With an IVR solution, banks can start the conversation with an automated message and allow their customers to connect with a live agent if they want to.

Banks nowadays have many financial products like loans, overdrafts, savings accounts, etc. With automated IVR information, they can inform and educate consumers about them. The call can be routed to a representative if the consumer shows more interest.

Checking the status of a bank account is a common consumer request. By using an IVR platform, they can access this information at any time by automating such requests.

3. Automated Support System

Customer inquiries can often be addressed without needing to speak to a representative. With professional IVR recording, customers can conveniently get information from the automated IVR system.

4. Prioritization

High-value customers can be prioritized and routed to the appropriate representative via IVR services without wasting time, eliminating slow response times, complaints, or support delays.

5. Efficient Call Management

A scalable IVR system eliminates delays and confusion caused by numerous calls. A call-back facility, automated information, and routing to the relevant department simplify customer service and the bank’s daily operation.

6. Credit Card Status and Security

The right IVR system can automate the process of checking credit card balances and outstanding balances. The security of a system can also be managed. In the event of a lost or stolen card, cancellations and blocks can be implemented immediately.

What are the usage of IVR system in Banking?

IVR systems can transform the experience of interacting with banks. Here are some specific, day-to-day use cases that more than justify the IVR system cost:

A. Product information 

Banks nowadays offer various financial products, such as loans, overdrafts, savings accounts, etc. With automated IVR information, they can inform and educate consumers about these products. The call can be routed to a representative if the consumer shows more interest.

B. Account information 

Consumers often call banks to check on the status of their accounts. Common queries include the account balance and whether amounts have been credited or debited. An IVR platform allows clients to access such information instantly.

C. Investment updates

Similarly, investors can make calls to inquire about details of the value of their portfolios. The IVR menu can be programmed with IVR flows to update them.

D. Credit card status and security

The right IVR process can handle questions about credit card balances, outstanding balances, as well as security issues. In the event of a lost or stolen card, cancellations and blocks can be done immediately.

E. Status of loans

When customers call the bank for an update on their loan status, the IVR software can provide them with up-to-date information about loan approvals or disbursements. An IVR portal can route calls directly to the department when more information or paperwork is needed.

F. Up-selling and cross-selling 

A telephone IVR system can also lead to a greater number of sales opportunities. Based on customer’s preferences and behavior, they can be offered additional loans, higher credit limits, and other financial products, and automated features can follow up on those requests. If a person shows interest, an appropriate representative or suitable bank agent can contact them immediately.

G. Feedback analytics

After addressing a consumer query, the IVR system for call centers can ask for feedback based on specified parameters. Analyzing such IVR calls over time can help the bank identify areas of strength and weakness in customer service.

Best practices of IVR system for Banking business

Now that you know what IVR is in banking, let us discuss some of the best banking practices: 

Banks need to find out the most common issues faced by customers. Common customer concerns should be included in the welcome menu. With touch-tone dialing, customers can easily select their problem from the welcome menu. 

Not all customers are self-serve buffs and want to speak to a human agent. An effective IVR system should allow customers to talk directly to bank representatives. Therefore, giving customers a direct option to contact a bank agent is better than going through the welcome menu. 

Conventional IVR systems offer personalization to customers up to a certain degree. It is time for banks to move towards hyper-personalization. Banks also can use TTS (Text-to-Speech) technology to enhance their IVR systems. 

FAQs

What are the benefits of using a cloud-based IVR system for a bank?

The benefits of using a cloud-based IVR system for banks are as follows:

• Cloud-based IVR systems offer greater scalability and flexibility compared to on-premise solutions.
• They are easier to maintain and update, allowing users to access anywhere with an internet connection.
• Cloud providers often handle security and compliance concerns, reducing the burden on your IT team.

How can a bank measure the success of its IVR system?

The success of the bank IVR system is measured by the following things:

• Track key metrics such as call resolution rates, customer satisfaction surveys, and the number of calls transferred to live agents.
• Analyze user call recordings to identify areas for improvement in the IVR prompts and menu structure.
• Regularly review and update the IVR system based on customer feedback and usage data.

What emerging trends in IVR technology should banks be positively aware of?

These are the emerging trends and technology in IVR system that can positively impact banking service and its operation:

• Conversational AI: Sentiment analysis and conversational AI technology allow users to interact with the IVR using natural language, making the experience more natural and efficient.
• Biometric Authentication: Voice or fingerprint recognition can be used for secure self-service options within the IVR.
• Integration with Chatbots: IVR systems can be integrated with chatbots to offer customers a wider range of self-service options.

Data Analytics: By utilizing IVR data, banks can better understand their customer’s preferences and behavior, which leads to improved personalized service.