Tag: retail banking

Michigan State University Federal Credit Union moved its client-facing chatbot, Fran, in front of its live chat agents in May, and the chatbot is now fielding 73% of the bank’s chat inquiries.

“When we moved Fran in front of our live chat agents, two things happened,” Ami Iceman-Haueter, chief research and digital experience officer at the $7.45 billion MSUFCU, told Bank Automation News: The chatbot could answer questions that typically wouldn’t have gone through it and inquiries directed from the chatbot to an agent led to more meaningful conversations with members dealing with more complex issues.

Fran has a 98% accuracy rate for the questions it fields, Iceman-Haueter said.

The bot can answer questions regarding account-specific information, including payment details; unlock credit cards; find account numbers; and provide loan rates and can also walk members through step-by-step solutions for problem-solving, according to the MSUFCU website.

Additionally, the chatbot is doing the work of 34 full-time employees, up from 21 full-time employees in March, Iceman-Haueter said. The credit union has not downsized its team at all; the technology is taking over roles that were difficult to fill amid workforce challenges during the past several years.

“We have no intention of downsizing in any capacity, if anything we’re really trying to narrow in on what next service things we can provide to members,” she said.

Building Fran

MSUFCU teamed up with Boost.ai in 2021 to reintroduce the client-facing chatbot and launch its own internal chatbot, Gene, Iceman-Haueter said.

“Both bots now operate with [Boost.ai] and they’re continuing to help us partner and grow those platforms,” she said.

For example, the chatbots go through quarterly updates to ensure that they address client and internal needs, she added. “We’re also continuing to roadmap out what [the chatbot] expectations will be in 2024 and 2025 to make sure that we can continue to meet our member support.”

Scotiabank invested in technology in the second quarter driven by project-related costs and software and licensing expenses.

The Canadian bank’s tech spend in Q2 increased 13% year over year to $383 million, according to the bank’s quarterly earnings presentation.

WHY IT MATTERS: In Q2, the bank focused on customer growth, purposeful allocation of capital and operational efficiency to increase profitability and reduce costs, Chief Executive Scott Thomson said today during the bank’s earnings call.

This is a continued effort from Q1 when Thomson discussed efforts to reduce spending in noncritical areas as the bank monitored the macroeconomic environment.

BY THE NUMBERS: Scotiabank posted in Q2:

• Digital usership grew 6% YoY to 9.9 million; and
• Mobile usership increased 11% YoY to 7.8 million.

NOTEWORTHY: In April, Scotiabank’s Group Head of International Banking and Digital Transformation Ignacio “Nacho” Deschamps announced his retirement.

He “led the bank through an enterprise wide digital journey,” CEO Thomson said in a release.

The bank appointed Francisco Aristeguieta as group head of international banking, according to a bank release. Aristeguieta’s appointment was effective May 1, and he is responsible for driving the engagement of clients in international markets.

FUTURE LOOK: The bank completed its national rollout of mobile app rewards program Scene+ during the quarter, Thomson said, noting that there are plans to enhance the program this summer with the addition of home hardware.

“The Scene+ program is exceeding our expectations. Scene+ has in excess of 13 million members and climbing with Quebec driving an oversize share of that growth,” Thomson said.

Editor’s note: All amounts have been converted to USD.