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InsurTalks Podcast with Alex Jimenez: Now is the Time to Reevaluate Digital Customer Experiences

7 minutes read

The COVID-19 pandemic has brought upon an unprecedented change in our daily lives and routines. Consumer behavior is changing constantly. Lockdowns and social distancing have led to huge losses for businesses across industries. The world is heading towards an economic slowdown. Under these circumstances, organizations are facing many challenges to keep their businesses going. Insurers too are facing similar issues. Some insurance lines such as motor, travel, home have suffered a business loss due to low demand.

To understand the impact of this crisis, especially in the USA, we interviewed Mr. Alex Jiminez, Strategy Officer at Extractable from California, and learned more about creating better digital customer experiences in these testing times. 

Extractable is a strategic consulting, design, and data analytics agency focused on the future of financial services. His other recent experience includes leading technology strategic planning for the office of the CIO, at Zions Bancorporation, and managing Digital Banking and Payments Strategy and Innovation at Rockland Trust. Alex has been named to several industry influencer lists in the areas of FinTech, RegTech, Blockchain, InsurTech, Innovation, and Digital Marketing. He has been featured in the Irish Tech News and the Independent Community Bankers of America’s (ICBA) Independent Banker.

Connect with Mr. Alex Jimenez – LinkedIn

The excerpt from the interview:

The impact of COVID-19 pandemic in the financial services industry

What is the impact of COVID-19 pandemic in the financial services industry, and how is the industry responding to the ongoing crisis in the US?

In the wake of the current crisis, organizations are more focused on keeping the operation going, trying to set-up work stations for remote working, dealing with customers and working with them over digital platforms. But very few are focusing on the future which is preparing for the after-effects of this pandemic on the economy. 

In-person communication is still an important mode of interaction with customers in the US banking sector. But now the issue is how to provide good services to clients? Some of our customers are going to experience digital models for the first time. 

Organizations that have well-defined Digital Strategies and Customer-First approach will be able to provide good support to their customers. Organizations that are late into this space are more likely to face problems in the future.

[Related: The Impact of Covid-19 on the Global Economy and Insurance]

Changing customer preferences

How can companies reach out to their customers in this New Normal world?

We have already started to move towards a digital-centric world which is just going to accelerate. We will see businesses who have earlier ignored their digital capabilities will now build more on them. 

The first video call was invented in the 60s and was not so appreciated as everybody thought it was expensive and complicated. Today we have FaceTime, Zoom but adoption has not happened on a larger scale. But this will soon accelerate. Customers will be comfortable dialing into a video chat with their Insurance agent. 

I don’t believe there’ll be a New Normal. For example, in the US after 9/11 people thought that life will never get back to normal but except for rigorous security screening at the airports, there hasn’t been much change in the behavior. 

In Israel, amidst all the constant disturbance, people in Tel Aviv and Jerusalem are living normal lives. There’ll certainly be some specific changes post the pandemic such as more adoption of digital technologies, more focus on customer needs but I believe there won’t be an entirely new world with a drastic change in consumer behavior.  

The need for personalization

What are some Attention hacking lessons for Insurers operating in ‘the New Normal’?

We are moving towards the personalization of products in general. Generally in Life Insurance, we insure people based on their date of birth or medical history. But what if we insure people based on their behavior? If we did that, would people change their more risky behavior to get a better rate? A non-smoker can be given a better rate as opposed to a smoker. If we get down to individuality, saying that this is your individual (your own) rate; it makes a difference. 

There is a lot of data available and AI is needed to mine that data and derive analytics. Just by building a relationship with customers, we are not doing a great job with personalization. It’s important to apply a human touch to the communication which makes customers feel like you know them. Thus, retaining their attention.

Digital customer experience in Insurance

For the insurance industry, what steps can help in delivering the right digital customer experience in terms of UX and visual design?

A lot of organizations practice Design Thinking but Financial Services don’t. They are of the opinion that they know what is needed as they themselves are customers and they have data from the surveys. But that’s a wrong approach. Design Thinking is about empathy. It is important to get into the shoes of your clients to design better solutions.

To enhance digital customer experience, Insurers need a thorough understanding of users — who are the ultimate clients, their needs, what they expect from this experience, etc. After comprehending how they engage with technology and financial services, start venturing into the solution and test the solutions with actual users.

Innovations in the financial services industry

What technology-based innovations are being explored within the financial services industry? And, do you see AI playing a role in the short term? 

AI has already affected Financial Services in a positive way and will make it better. In insurance, IoT has been very impactful and will continue to be. Some applications have already been applied in reality like sensors in cars to detect speed and ensure that you are under the speed limit. This helps in getting reduced premiums. 

However, some basic processes are still done in the old school way of shuffling papers. Straight though-out processes have not yet happened. Now RPA is being applied to this but it is more like a band-aid. What is more important is how we can build processes through true automation with AI.

[Related: 5 Insurance Front Office Operations AI Can Improve]

Adoption of AI in Insurance

Speaking about more adoption of technologies, do you think there’ll be more investment in AI now?

Absolutely! We have already seen that investment in technologies like AI, cloud computing, quantum computing has been ramping up. Businesses will invest much more in AI than before. It might be for better decision making, underwriting, understanding the behavior of clients, etc. Also, from a marketing standpoint, financial services have never focused much before but will now invest in AI for this area too.

[Related: How is AI extending customer support during COVID-19 pandemic]

In your recent article in Extractable – “Deploying third-party financial service technology to mitigate crisis” you talk about what tech vendors are doing wrong. Please expand on how to encourage resources to be innovative change agents?

There were two points that I made in the article-

First is about what companies are doing incorrectly when it comes to innovation. Risk management is consulted only after developing the product. The product release is stalled until the legal compliances are adhered to. Instead, companies should involve the risk management at the beginning of the process (while defining the problem and solution). Involving risk management at every step of the innovation process will make it much easier to push out innovation.

The second was about vendor management. Many small vendors such as tech vendors, InsurTechs want to sell solutions to financial service companies but are often surprised by the tedious vendor management process. There’s a lot of documentation. Once the first process of selling is done, vendors should package the documentation in a way that when the next prospect asks for it, the due diligence package is ready to offer. 

Read article – Deploying third-party financial service technology to mitigate crisis 

Wrapping up

Alex shared interesting insights on how Design Thinking and Visual Design can create better digital customer experience. The design vertical at Mantra Labs too believes in the same and has designed UX for various applications for its customers. Here’s an article to understand the role of Customer Experience (CX) and User Experience (UX): Creating Amazing Digital Customer Experiences


AI is going to be essential for Insurers to gain that competitive edge in the post-pandemic world. Check out Hitee — an Insurance specific chatbot for driving customer engagement. For your specific requirements, please feel free to write to us at hello@mantralabsglobal.com. 

Podcasts in this series:

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Open Finance: Reality or Hype?

3 minutes read

Open Banking has reshaped the fintech industry. Customers want a seamless experience with more convenient and flexible access to services. Technological innovation and digital transformation have led to the emergence of neobanks which offer a banking experience similar to delivery apps. Now the customers can avail of services like opening an account in minutes. In the last few years, another new concept- Open Finance has joined the queue. What exactly is open finance? Is it just hype or reality? And how open finance might improve customer experience (CX). These are some of the questions that we’re going to talk about in this blog. 

Open Banking

In open banking, banks and other financial institutions allow third-party financial service providers to access the bank’s customers’ data via APIs (application programming interfaces). This helps banks to create more personalized offerings and meet the changing needs of their customers.

What is Open Finance?

Open Banking and Open Finance are similar. However, Open Finance is slightly more advanced in the process. Simply put, it is the next step in open banking. 

Open Finance is a more customer-centric approach. It gives users a safe and dependable way to share their data with the financial tools and apps they prefer to use.

How is Open Finance different from Open Banking?

How is Open Finance different from Open Banking?

Source: Accenture

Open Banking has certain limitations when it comes to sharing of financial data. Here, only that data can be shared which is related to financial operations made within the bank’s app or in a branch office. Open finance goes beyond this limitation.

In Open Finance, non-banking financial data including mortgages, savings, pensions, insurance, and consumer credit – basically your entire financial footprint – could be opened up to trusted third-party APIs if you agree.

Open finance will help open new gateways for financial institutions to improve CX. Let’s dig deeper to understand how this concept will change CX in the Fintech world for the next-Gen customers. 

  1. 360-degree Customer Insights: Data acts as a tool to study deeply about your customers. Organizations can analyze the customer data and extract some valuable insights to design the complete customer journey. Open Finance opens a more secure pathway for financial institutions and gives a more complete picture of their customer’s finances. 
  2. Partnerships & Collaborations: With open finance, comes an opportunity for the financial institutions to network and collaborate with various providers. This means they could deliver a wider variety of services based on consumer data, uncovering new business models and innovations.
  3. Transparency for the Lenders: Lenders can evaluate and measure the creditworthiness of potential borrowers, audit documents, and offer customized solutions by securely collecting customer data. Machine learning algorithms may help to extract valuable insights from raw data.

Open Finance offers freedom and flexibility to consumers giving more options and control over the data they share and how they engage with their finances. With just 8 seconds of attention span, the new age consumers want better experiences to get hooked to one brand. Open finance creates unparalleled access to a broader range of products and services. With data sharing, banking organizations can keep track on the changing customer expectations who want frictionless interactions and hyper-personalized experiences across all touchpoints of the customer journey.

The Road Ahead

Statista predicts that there will be 63.8 million open banking users globally by 2024, increasing at an average annual rate of about 50% between 2020 and 2024. This means there will be more demand for innovative products and services in the industry. Banking organizations would need to analyze the rising customer expectations more closely than ever. And for this, data would act as a key to designing the experience of tomorrow. 

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