Dear Banks, We Need to Talk

As families reconnect over the Christmas period, so should banks and their customers:

 
Only 27% of Brits feel their bank is providing them with tailored financial support amidst the cost-of-living crisis; Zahra Hassan, co-founder of Eligible, discusses how lenders can embrace technology to help leave financial illiteracy in 2023

 


The holiday period is a time for friends and family across the country to reconnect and rekindle the connections that may have been neglected over what’s been a tumultuous year for many. One relationship that’s been especially tested over the course of 2023 has been that of banks and their customers. Zahra Hassan and Rameez Zafar, co-founders of Eligible, the UK’s first platform used by banks to provide bespoke financial expertise, argue that 2024 should be the year for lenders to repair this relationship through the help of AI-driven technology. 
 
2023 hasn’t been the best year for household finances by any means, the cost-of-living crisis continues to force many families to make even tougher budgetary decisions, juggling between sky-high bill packages and persistent inflationary pressure. In the midst of this, more and more banks are disappearing from local high streets, depriving many Brits of their primary source of financial support. At the same time, 88% of Brits do not feel confident in their financial literacy, with the average household losing almost £3k a year on account of this. 
 
According to Hassan and Rameez, the adoption of technology by banks may be the key to repairing the relationship between lenders and customers, leaving financial illiteracy in 2023. The advent of artificial intelligence allows for vast quantities of customer data to be analysed at incalculable pace, identifying consumers that are most at-risk and providing tailored support where needed. Moreover, the incorporation of learning algorithms and generative AI allows for service providers to demystify concepts, providing a vital lifeline the 7-in-10 Brits that feel overwhelmed by financial jargon. 
 
Alongside the FCA’s recently published guidelines on Consumer Duty, obligating banks across the UK to provide tailored financial support and ensure that the unique needs of individual are met, Hassan and Zafar believe that 2024 will be the year for banks to repair their all-important relationship with consumers.
 

 
Zahra Hassan, co-founder of Eligible, comments:

“What AI can do today is interact with customers and measure the level of understanding of their existing product before providing bespoke financial expertise. Based on this, we can start to form views on the likelihood that they could struggle to meet their payments. 

“AI can be used to detect how well people understand their financial product and use this data to spot vulnerable customers in order to better educate and support them.

“AI has the power to transform customer support from a reactive relationship to a proactive one. Instead of banks providing support only when the customer asks for it, AI can detect those who are likely to need assistance and proactively engage with them, fostering education and active dialogue.”