IVR in Banking - Is It Useful and Why Do Banks Use It?

IVR systems have multiple use cases, and companies from many sectors can use them in their day-to-day business. However, we are not here to talk about IVR in general. Instead, we will talk about IVR in banking.

More specifically, this article will cover some basic information about IVR, how banks use it in their day-to-day business, and more. So, if you want to learn more about how banks use IVR and why they use it, you have come to the right place.

Also, in the end, we will list a few best practices for IVR. Thus, you can get some inspiration for your own IVR system. But, the main goal here is to dive deeper into IVR in banking.

But before we dig in, let’s see what IVR is first.

What Is IVR?

Interactive Voice Recognition (IVR) is a piece of software that allows computers and intelligent devices to interact with humans. More specifically, it allows businesses to use computers instead of agents to talk to customers.

IVR can help you to fully automate your phone system to perform many tasks without the need for human assistance.

In other words, IVR is an interactive menu that customers meet when they call a company.

It provides them with options that they can choose from by pressing a button or speaking to the phone. Some options include tech support, sales, billing, or customer support.

Of course, an IVR system can offer other options - it all depends on what the company wants.

Also, if a caller wants to talk to an agent directly, the IVR system can redirect them. IVR in banking has already become an industry standard. It is available round the clock, and callers can reach it at any time.

You can design your IVR system any way you want. Also, you can design it in a way that gives a more personalized menu to each caller. How? Well, the system gathers data from each interaction.

Furthermore, it stores that data and analyzes it. So, when the same caller calls again, the system can rearrange their menu options based on their previous actions.

Thus, the options callers chose last time will pop up first, giving a more personalized feel to the callers.

IVR systems also work on a self-service basis. Namely, callers can find the information or answers they need on their own with the systems’ help.

They can do so by clicking which options they need, which will further redirect them to a website or directly provide them with the information they need.

Use of IVR in Banking

The banking sector is one of the most significant sectors in the world. As such, it is constantly upgrading and moving forward with new technologies. One such technology is IVR in banking.

But, how do banks use IVR? In the next section, we will go through some use cases of IVR in banking so you can see how it is used in this sector.

Reporting Credit Card Issues

Usually, when someone loses their credit card or has similar issues, they have to call the bank. Waiting for a bank teller or other employee to take a call can last for hours. However, banks can solve that issue with IVR.

Customers can report such issues via an IVR. The system is always online, and customers will not have to wait at all. Customers can report their credit card issues by dialing the IVR number and completing a few simple steps that the system has in place.

After submitting the request, customers usually get a confirmation SMS or email. Thus, the process is complete, and the customer can now receive a suitable solution from the bank.

IVR in Banking Can Send Fraud Notifications

An IVR system can immediately notify a customer if a suspicious transaction happens in their accounts.

Banks can also do that via an SMS notification. However, an IVR system will allow the customer to contact an agent at once and resolve the issue immediately.

Banks Use IVR to Give Product Information

Like any other business, banks need to engage with their customers as much as possible. Also, banks need to notify customers about their products and services.

An IVR system is an ideal tool for communicating with customers. It can give them the information they need about a product or service. Furthermore, if the customer is interested, the system can transfer the call to an agent who can sell the product or service to the caller.

Loan Activities

Customers can call IVR and see the status of their approval and disbursement for a home loan, personal loan, or other loans.

Also, many banks allow customers to apply for a loan online. And usually, that process is done via IVR.

IVR in Banking Is Used for Changing Information

Customers can change their address, email, phone number, and other personal information through an IVR.

They can also request PIN changes and register for new services. So, no more waiting in line to do something that usually takes a few minutes to do.

Many tasks like the ones we mentioned here can be done instantly via IVR in banking. Thus, banks can cut costs and increase efficiency via IVR.

Activating and Deactivating Cards

Thanks to IVR in banking, customers do not have to go to the ATM or the bank to activate or deactivate their cards.

Banks give a unique telephone PIN (TPIN) for sensitive transactions or requests to ensure security. So, customers can rest assured that the transactions they do via IVR are safe from hackers and threats.

Surveys

Banks can conduct surveys through their IVR system. The system can tailor the questions on the survey based on the answers the customer gives while taking the survey.

Thus, banks can enhance their customer service and live up to customer expectations through IVR.

Benefits of IVR in Banking

As you have probably noticed, IVR systems can be very beneficial. But what benefits can you gain by having an IVR system? Let’s find out!

An IVR system can handle thousands of calls at the same time. We all know that banks are bustling every day, especially at the beginning and end of the month. So, sometimes it is virtually impossible for banks to answer every call they are getting, and customers end up waiting for hours or not getting a response at all.

IVR systems can handle all those calls and ensure that all customers receive a timely response. So, no matter how many calls a bank receives, an IVR system can answer all of them.

Also, IVR systems are online 24/7. So, no matter when a customer calls, the system will respond. And if a customer needs to speak to a live agent, then the IVR system can schedule a call when an agent is available.

Thus, customers won’t wait for hours and waste their time. Furthermore, they will appreciate the bank even more and want to do business with the bank again.

Using IVR in banking can increase customer satisfaction and engagement. Not waiting in line and receiving quick responses will satisfy customers immensely. Thus, customers will want to engage with the bank even more in the future. So, both customer satisfaction and engagement will increase with the help of IVR systems.

IVR in Banking Best Practices

The only way for banks to reap the benefits from the IVR system is by making sure that their IVR system is effective. So, let’s see a few best practices for IVR in banking that can help banks make their IVR systems effective.

Decide which information to put in the welcome menu - Banks can use available data to find out what customers call for the most. For example, if customers call a lot to ask about working hours, then put your working hours first. However, they should not put a lot of information in their welcome menu because it can confuse and frustrate customers.

Provide an option that lets customers speak to an employee - Some people are not very tech-savvy and prefer to speak to an agent directly. A bank’s IVR system should always allow customers to call a live agent directly if they want to. Also, customers with an urgent problem will most likely want to speak to someone instead of going through an IVR menu, so an option like this will be suitable for them.

Transfer the caller to the appropriate agent or department - Banks should regularly test their IVR systems to ensure that customers are transferred to the right people or departments. That way, your customers will always receive the help they need.

Last Words About IVR in Banking

Even though IVR in banking has been around long enough to become an industry standard, it’s not going anywhere anytime soon.

That is due to its ability to increase banks’ customer satisfaction and engagement. Also, thanks to IVR systems, bank employees have more time to focus on more complex tasks and solve complicated problems.

What’s more, with IVR in banking, customers can get information about everything they need in one place. Furthermore, banks can save a lot of money and time by using IVR in their daily operations. Customers will always be able to reach you and access their accounts with a few simple steps.