Disrupting financial services: Fintechs, AI and true customer centricity

According to Gustavo Saiago, the financial services industry needs to shift its mindset from one of product-centricity to customer-centricity.

As a CX executive, entrepreneur and one of CX Network’s Top 20 leaders in financial services, Saiago has worked for commerce and payments ecosystem Mercado Livre, fintech Nubank, and even cosmetics pioneer Avon.

Two years ago, he founded Arte de Atender and most recently he announced a new venture Birdie, where he holds the role of director, product and CX Evangelist.

Birdie combines data and feedback analysis to help its clients understand and quantify their users’ pain points to prioritize initiatives that will increase customer satisfaction and reduce churn. Saiago and the team have also devised Birdie's Maturity Matrix to help organizations bridge the gap between CX and product development.

Ahead of his panel at All Access: CX in Financial Services, Saiago (pictured below) tells CX Network about the three customer behavior trends that can be targeted to reduce churn, and how traditional financial institutions can take inspiration from the fintech space.

CX Network: Before establishing Birdie, you spent five years with Brazilian fintech, Nubank, innovating CX in financial services. Looking at the broader financial services industry, how would you asses its approach to and success at, CX?

Gustavo Saiago: The financial services industry is undergoing a dramatic transformation, with customer experience becoming the ultimate battleground. Fintech pioneers like Nubank have shown that by placing the customer at the core of every decision, it's possible to disrupt centuries-old business models. Their success hinges on a relentless focus on customer needs, coupled with a culture of innovation and agility.

A staggering 86 percent of consumers now prioritize seamless digital experiences, according to a Forrester study. This underscores the imperative for financial institutions to adopt a customer-centric mindset. This means shifting from product-centricity to customer-centricity, ensuring every department, from marketing to risk, is aligned around delivering exceptional experiences.

By embedding a customer-centric culture, organizations can foster a deep understanding of customer needs, leading to the development of products and services that truly resonate.

The Brazilian market is a prime example of this trend. Local fintechs like Nubank and Mercado Pago have rapidly gained traction by offering superior customer experiences. These companies have leveraged technology to create intuitive, user-friendly platforms that cater to the specific needs of Brazilian consumers.

Their success highlights the importance of understanding local market nuances and tailoring products and services accordingly. As traditional financial institutions face increasing competition from these agile fintechs, they must accelerate their digital transformation efforts and prioritize customer experience to remain relevant.

CX Network: Fintechs aside, how can traditional financial institutions improve the experiences they provide to customers?

Gustavo Saiago: Traditional financial institutions possess a wealth of data and trust, but to compete in today's market, they must undergo a radical culture shift. It's about more than just digital transformation; it's about a fundamental reorientation towards the customer.

By empowering employees to make decisions that directly impact the customer experience, these institutions can unlock new levels of innovation and loyalty.

A McKinsey report found that banks excelling in customer experience generate up to 2.5 times the revenue of their competitors. To achieve this, a customer-centric culture is paramount. It's about creating a workplace where every employee feels empowered to put the customer first, where feedback is actively sought and acted upon, and where innovation is celebrated.

By fostering a culture of continuous improvement, traditional institutions can bridge the gap with fintechs and regain customer trust.

To thrive in this new era, traditional financial institutions must embrace a test-and-learn mentality. By experimenting with new products, services and customer experiences, they can quickly identify what works and what doesn't. This iterative approach allows for rapid adaptation to changing customer needs and preferences.
For instance, banks can experiment with different digital channels, such as mobile apps and voice assistants, to determine which ones resonate best with customers.

They can also test various personalization strategies to optimize customer engagement and satisfaction.

By continuously gathering customer feedback and iterating on their offerings, traditional financial institutions can create more compelling and relevant experiences.

RELATED CONTENT: CX Network’s top 20 leaders in financial services

CX Network: Your CX start-up Birdie leverages AI and NLP to help companies understand what aspects of customer experience are impacting satisfaction and contact rate. What are some of the more surprising customer behavior trends that you have uncovered when working to increase engagement and retention for your clients?

Gustavo Saiago: At Birdie, we’ve discovered that understanding customer behavior is the key to driving engagement and retention.

Our data-driven approach, combined with a deep understanding of human psychology, allows us to identify hidden patterns and preferences. But data alone isn't enough. It's essential to translate these insights into actions that create meaningful experiences.

By fostering a customer-centric culture, organizations can ensure that every employee is equipped to deliver personalized and delightful interactions. This requires a commitment to continuous learning, experimentation and a willingness to adapt based on customer feedback.

In this journey with Birdie, we found three very important behavior trends that usually help companies increase revenue and reduce their churn:

• The human touch matters more than perfection: Customers value authenticity and human connection over flawless experiences. Mistakes can be turned into opportunities to build trust by demonstrating empathy and resolving issues effectively. Vulnerability can also foster deeper connections, making brands more relatable.
• The importance of active listening: Customers who remain silent may not be satisfied. Proactive feedback seeking and active listening are essential for uncovering hidden needs and improving products or services. Understanding customer sentiment beyond explicit feedback is crucial for business success.
• The power of micro-moments: Details matter! Small, fleeting moments can significantly impact customer perception and behavior. Positive interactions, such as engaging social media posts or helpful customer service, can influence purchasing decisions. Conversely, negative experiences can damage brand reputation.

RELATED CONTENT: A golden rule for gaining C-suite buy-in for your CX initiatives

CX Network: What do you consider to be the most influential customer behaviour trends at present, that practitioners need to take note of?

Gustavo Saiago: For me, there are three main CX-related no-brainer trends that should be addressed as soon as possible. They are speed, efficiency and proactive problem solving.

In today's fast-paced world, customers demand instant gratification, seamless experiences and proactive problem resolution. This means businesses must prioritize speed, efficiency, and anticipating customer needs before issues arise.

Time is a customer's most valuable asset. People don't just want to save money; they want to save time. Every interaction with a company is an opportunity to either steal or gift precious moments of their lives. Businesses must operate with a sense of urgency, minimizing wait times and eliminating unnecessary steps in the customer journey.

Technology, particularly AI, is a powerful tool to achieve this. By automating routine tasks, providing real-time support, and analyzing customer data to predict potential problems, companies can significantly enhance customer experiences. However, technology should augment, not replace, human interaction. A truly exceptional customer experience requires a blend of technological efficiency and human empathy.

The future of CX lies in proactive problem-solving. Instead of reacting to customer issues, businesses should leverage AI and data analytics to anticipate and address potential problems before they escalate. For example, AI-powered systems can analyze customer behavior patterns to identify potential pain points and offer solutions proactively.

This approach not only improves customer satisfaction but also frees up human agents to focus on more complex and empathetic interactions.

Ultimately, the goal is to create a customer journey that is so seamless and effortless that customers feel they never needed to contact the company in the first place. When customer support is required, however, businesses must deliver exceptional experiences that exceed expectations.

RELATED CONTENT: CX leaders in finance reveal top trends: AI, digital twins, customer empowerment

CX Network: What’s the most interesting thing you’re seeing in CX right now?

Gustavo Saiago: The most exciting frontier in CX is the convergence of technology, data and human empathy.

AI is unlocking unprecedented insights into customer behavior, allowing businesses to anticipate needs and deliver highly personalized experiences. However, technology is a tool, not a replacement for human connection.

A truly customer-centric organization is built on a foundation of empathy and innovation. By empowering employees to prioritize customer needs and fostering a culture of experimentation, businesses can harness the power of AI to create exceptional customer experiences. This combination of human ingenuity and technological advancements will drive customer loyalty and business growth.

To achieve this level of customer-centric excellence, organizations must prioritize alignment between CX, Product teams and other areas from the company.

We have created a Birdie's Maturity Matrix that offers a clear roadmap for building a seamless partnership between all areas to ensure the same goals. By focusing on customer-centricity, leveraging customer feedback, making data-driven decisions, and fostering a culture of continuous improvement, organizations can bridge the gap between CX and product development.

This collaborative approach ensures that every touchpoint in the customer journey is optimized for success.