The evolution of the phone call in 2021 – Finextra

This year, the pandemic has kept us apart physically, but humans are nothing if not innovative, and communication is a basic human need. While Zoom and other video calling technologies quickly filled much of the void for those desperately missed in-person communications; the phone is still one of the most important communication channels for financial institutions.

Research shows that the phone channel is still consumers' preferred method for handling complex or sensitive financial matters. The popularity of the phone is not expected to let up either. In our survey of financial institutions, 70% of respondents said their outbound calling increased this year, and over 65% said they expect it to increase in 2021. Thats in spite of the challenges of robocalls, call spoofing, and fraud.

Theres a lot on the horizon when it comes to the phone, including new regulations and standards to protect us, along with new features that will cement the phone as a more modern tool with an improved customer experience. Below are predications from three Neustar experts on phone channel trends in 2021 financial institutions need to be aware of in the new year.

An enhanced customer experience

Given the deluge of robocalls, fraud, and call spoofing, most financial institutions find customers dont readily pick up the phone these days. In fact, 88% of business calls go unanswered.

But theres good news. According to James Garvert, SVP and general manager of caller identification solutions at Neustar, illicit robocalls have eroded trust in the phone channel, but in the coming year, we expect to see over 50% of mobile phones utilising robocall protection solutions alongside call authentication standards like STIR/SHAKEN which is mandated by the FCC for use by June of 2021. Whats more, the emergence of branded calling, which display rich call data such as logos, reason for the call, and more, on the mobile display coupled with STIR/SHAKEN authentication will reassure customers about who is actually calling.

We anticipate that these factors will improve call answer rates, and trust will be on the rise. To increase trust in the channel, financial institutions should look to provide their customers with branded, authenticated call experiences.

The incessant need for more bandwidth will continue.

According to John Denemark, SVP and general manager of carrier provisioning at Neustar, "Financial institutions are struggling to meet the sudden and dramatic shift to remote relationships with customersand remote workers. That centers around the need for faster and more secure bandwidth.

Internet service providers and telecom carriers have moved to increase bandwidth capabilities but, in an age where customers are used to getting what they want, when they want it it cannot happen fast enough.

5G presents a new breadth of possibilities for the industry, but its years away before everyday customers will truly feel its impact, Denemark continued. In 2021, we will see the race intensify as the telecom industry seeks to massively upgrade, expand, and densify their networks, all while monetising those investments and simplifying and automating their operations. Financial firms will experience significant benefits from those upgrades.

Robocall mitigation wont stop at the border

We learned this year that many scams originate overseas and slip into our calling ecosystem, often through smaller voice carriers. While Canada has taken the first steps toward adopting robocall mitigating STIR/SHAKEN protocols, more is needed from the international business community, and countries around the world, to make any meaningful impact against international illicit robocalls. Any financial institution operating in international markets needs to understand how their call environments change in different international markets knowing so can make the difference between a missed call or a positive customer experience.

Jon Peterson, vice president and fellow at Neustar, noted, "The U.S. government and enterprises have taken aggressive steps to curb robocalling but illicit robocalls are not bound by our borders. Look to 2021 for the early signs of international progress beyond North America, with other countries stepping up to either create new or adopt established caller identity authentication protocols to reduce the amount of illicit robocalls worldwide."

To be able to provide excellent customer experience by phone, financial institutions must first be able to connect with their customers. 2021 will bring in new standards such as STIR/SHAKEN and technologies such as branded calling, to return trust back to the phone call.

Financial institutions need to be aware of these trends to take advantage of rebounding trust in the channel and to not only more easily and readily connect with customers, but also provide seamless experiences over the phone that will keep customers safe, secure, and valued.

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The evolution of the phone call in 2021 - Finextra