The Customer Effect

HSBC is using a robot to add the ‘human touch’ to banking

  • HSBC is deploying a robot to greet customers and carry out simple tasks
  • While Pepper is robot, a key objective is to help customers find their way to humans more efficiently
close

Email a Friend

HSBC is using a robot to add the ‘human touch’ to banking
Customers visiting HSBC's flagship New York City location on Fifth Avenue will now be greeted by a robotic employee called Pepper upon arrival. But while Pepper can help with simple questions and greetings, it's not about to take over tellers' jobs quite just yet. It's actually being deployed to make the banking experience more human. "The death of the branch has been touted for the past 10 years, but what we find is the branch is still one of the most important reasons people choose a financial institution," said Pablo Sanchez, regional head of retail banking and wealth management for the bank's U.S. and Canada operations. "[Pepper] educates and gives people awareness of other ways to transact or to get human interaction -- we don't want to lose the human touch." With the growth of digital banking, the industry has been grappling with what to do with physical branch spaces. Branches are becoming less transaction-focused and increasingly turning into relationship centers, or anchors for human-centered banking experiences. While Pepper is a robot, it acts as a concierge that can direct customers to bankers who can help them. It can answer simple questions, and it doubles as an online banking station, with a tablet screen where customers can get more information about products, log into their mobile banking account, or just "have fun" by taking selfies or dancing with the robot. HSBC is testing Pepper at its flagship New York City location but isn't saying more right now about plans to deploy it further. The bank is focusing on getting customers comfortable interacting with it. "What we expect from Pepper is not to replace humans but to actually build the business so that we can hire more people here at 452 [Fifth Ave.] and across our network [and] help customers fulfill their financial needs," he said. Adding robotic employees will let bankers focus on more complex tasks, said Aite senior analyst Tiffani Montez. "It's looking at the things a consumer does in a branch and focuses on using technology to take the non-value-added activities [away from bankers], allowing employees to focus more on truly building relationships," she said. Since robots are already being deployed in retail locations  -- for example, Lowes' LoweBot can find products and navigate inventory throughout the stores -- it's natural to expect customers to demand similar types of service offerings from their financial institutions, she added. Pepper was developed in 2014 by Softbank Robotics. It's designed to mimic a human with inbuilt abilities to recognize the presence of humans and their emotions. It has the ability to capture customer-specific data including names and appearances. While bankers and retailers may find this useful, HSBC said it has no plans to roll out that capability right now. Despite Pepper's potential as an engagement and task-efficiency tool for bankers, it also has its limitations. At this point in its evolution, Pepper still needs to escalate complicated questions to humans, and unlike Amelia -- the robotic "cognitive agent" used by some banks and insurers developed by software company IPsoft -- it's unable to think on its feet and must be trained in advance. "The Pepper platform isn't very rich in terms of integration," said J.P. Gownder, vp and principal analyst at Forrester. "Most of the deployments haven't been very sophisticated; it's mostly about finding out 'where do I go in the store' and answering very simple questions." What would give Pepper the muscle to go beyond a novel engagement tool, said Gownder, would be to add more 'thinking' capabilities like natural-language understanding. For now, its effectiveness doesn't go beyond being a 'way finder' -- an engagement tool that helps customers navigate and reach humans when they require more assistance. It could have a positive effect of drawing people in the branch and generating excitement about the customer journey, but it could backfire if it's not seen to be adding value to the experience. "If Pepper's artificial intelligence is sufficient, it may even be helpful in helping guiding the consumer's retail experience," said Gene Pranger, CEO of POPin, a company that helps financial institutions with customer service technology solutions for brick-and-mortar branches. "If, however, the first experience is simply novel and doesn't serve the interest of the consumer on an ongoing basis, the technology will quickly fade into oblivion."  

0 comments on “HSBC is using a robot to add the ‘human touch’ to banking”

The Customer Effect

The White House is proposing an increase in the capital gains tax. What will non-white groups gain?

  • The White House is proposing a hike in capital gains tax as part of a deficit reduction plan.
  • The taxation system in America needs another look, so far the balance has been tipped in the favor of investors and white households. Will the capital gains tax rebalance the scales?
Rabab Ahsan | March 15, 2023
The Customer Effect

Americans think financial literacy can help them cope with the cost of living

  • Consumer prices are rising and the cost of everyday goods is expected to remain volatile.
  • With the frequent ups and downs in the economy, consumers are starting to bank on financial literacy to help them weather the storm.
Rabab Ahsan | March 02, 2023
The Customer Effect

Consumers are relying more on credit in this bad economy

  • Due to economic headwinds, people are turning to credit to make ends meet.
  • What will this upswing mean for issuers in the future?
Rabab Ahsan | February 24, 2023
The Customer Effect

How are Americans coping with their financial burnout?

  • Americans are feeling financially overwhelmed due to sustained inflation and slow economic growth.
  • Many consumers are now putting a greater emphasis on financial well-being, and have increased their reliance on digital banking tools.
Sara Khairi | February 13, 2023
The Customer Effect

With high inflation, are savings out of the picture for American consumers?

  • Inflation has been affecting saving habits across the board as consumers have to spend more to afford basic necessities.
  • Given the turbulence of the past few years, paying off debt has been ranking high on the list of savings priorities for most Americans.
Rabab Ahsan | February 08, 2023
More Articles