Jack Henry, the banking technology provider that specializes in community and regional banks, is expecting banks to increase their human-digital approaches in 2020. It’s a nod to growing number of community and smaller institutions that see the human element as a differentiator in competing with digital-only startups and well-heeled large companies that are pitching digital-only offerings.

“In 2020, we expect to see the adoption of modern personal engagement,” said Stacey Zengel, vice president of Jack Henry & Associates and president of Jack Henry Banking, in a report detailing Jack Henry’s 2020 predictions. “Virtual assistants and chatbots can be complemented by human support to be available at all times while providing deeper, personal assistance at the customer’s moment of need. Meanwhile, role-based assistants can help bank employees automate mundane tasks so they can humanize the meaningful services they offer their customers.”

As banks continue to automate mundane processes, human-digital is seen as a way to increase efficiencies without losing customers who want a human touch during crucial points in their financial lives. It’s a strategy some large institutions are using, including Umpqua Bank and Bank of America. For example, Umpqua, with its Go-To tool that allows customers to text a personal banker, and Bank of America, with its small business strategy that mixes digital cash management tools with in-branch specialists, both employ this approach. 

Large banks’ reliance on humans
Bank of America’s human-digital approach extends beyond small business banking. It launched Merrill Edge Guided Investing with an Advisor in June, which allows customers to invest online with the help of a human adviser if they choose.“[Clients] don’t want to just hand it over and forget it; many have the do-it-yourself mentality and enjoy that digital interaction,” said David Poole, consumer investment solutions and client services executive at Bank of America. “They also appreciate the added confidence of working with an adviser.”

Ally Bank, a digital-only bank with more than $181 billion in assets, credits its growth to fast digital onboarding with constant human customer service. Meanwhile, Navy Federal Credit Union uses technology from Blend that allows loan officers to co-browse with members searching for a mortgage and help them through the pre-approval process. A recent study from Forrester Research indicated 71% of U.S. adults who regularly go online still head to the branch to open a new checking account. 

See also: BofA launches hybrid human-digital investment product

Small banks offer varying degrees of human support for digital banking tools
Smaller financial institutions are taking varying degrees of human-digital delivery for banking services. For example, Jacksonville, Fl.-based VyStar Credit Union is using technology from Zest AI to speed up loan underwriting, but human underwriters are still an important part of its operations. “Those underwriters will be valuable in other areas of our credit union, whether it’s analytics of the decisions or something else,” said Jenny Vipperman, chief lending officer at VyStar.

Kansas City-based Academy Bank is using video kiosks to connect branch customers with specialists at the bank’s headquarters. Meanwhile the Camden, Ark.-based River Valley Community Federal Credit Union launched a standalone app for members to work with tellers through video. 

In its predictions, Jack Henry also said banks’ lending operations will move toward centralized platforms that can handle a variety of loans, including consumer, commercial and small business loans. 

“As siloed channels become less important, banks have the opportunity to gain a better view of a customer’s entire banking relationship,” Zengel said. “This means banks can provide better service and sales across most areas.”

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