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Decision Trees

Updated On: Oct 26, 2023

Decision Trees In Banking: Elevating The Banking CX

Reading-Time 7 Min

Decision trees in banking

Decision trees in banking are the way to make complicated financial decisions in any situation. Decision trees in the banking sector have been long known in the fields of risk management or risk analysis. They are enablers of compact decision-making in any situation.

The decision-making ability in any sector, including banking, is not limited to just risk management. Decision trees can aid all parts of customer service in banking.

Challenges in the banking sector for customer service

Suppose you broadly look at the customer service provided to banking customers. In that case, you may notice that customers might have apprehensions about sharing their data or agents not having the right solutions. The following are found to be significant challenges in customer service for banking:

1. Data protection threats

When on-call customers do not like to share highly personal details necessary to have a smooth conversation flow, points are collected to assess a customer’s eligibility on a plan or any other related process with the bank.

Customers might not have the trust factor because they might not want to share details openly with your banking agent. Second, your agent might not specify the right words to your customer to make them gain trust.

2. Absence of personalization

The above problem of lack of trust is one of the primary reasons for the lack of personalization in the banking industry. Customers need to share exact details of their income to be offered suitable plans accordingly.

When the customer does not share these details, the bank cannot offer the customers products or services designed for their needs or purposes. One cannot blame the customer entirely for this or the bank. Still, the bank has to ensure protection to elevate its services further.

3. Lack of personnel

Agents cannot be present everywhere at all times. One agent can give their full attention to just one customer during one session. This means if the agent or the customer takes too long to discuss a particular problem, the next customer is made to wait longer.

Waiting in banks to get to their turn agitates any customer. The solution to this challenge could be adopting actions that make way for faster customer service. Tools to enable fast customer service are necessary to eliminate the stereotype of slow working banks.

4. No self-service

Banking services are complicated and are different from the usual services offered in the market. They might require hours of assistance from the bank’s side to the customer for any process. However, some techniques can be made simpler through self-service portals.

It is upon the bank to trust their customers to comply with any activity like form filling or application. Banks do not fully enable Self-service, which costs them a lot of money. However, proper planning can help avoid overburdening of a customer or agent.

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Decision trees in banking: The one-stop solution to all customer service needs

Decision trees in banking help solve all customers’ needs and overcome customer service challenges in finance. They enable positive interaction for both the customer and the banking agent.

Decision trees for customer service combine the knowledge required for banking services and agent scripting to give a customer the best of customer services; from the agent’s perspective, decision trees aid is not memorizing a lot of information while following bank protocols.

Ways through which decision trees in banking or finance help through self-service

1. Enables independent service

We have established that not all processes can be done in person, but those that can be done need to have self-service options that can include activities like sending money across—recharging various home services, etc.

Investing or getting insured can also be done through simple decision trees in banking that check the customer’s eligibility without them having to talk to an agent or go in person to the bank. Functional decision trees help make step-by-step decisions in any scenario the script is written for.

Enabling self-service through decision trees in finance helps in deflecting calls that an agent must address. This way, one can ensure that an agent is dealing with complicated matters and leaving the easily solved questions or queries to be dealt with through decision trees.

2. Builds customer trust

Nowadays, credit cards or debit cards can be applied through phone calls. Decision trees have step-by-step process guides that guide the agent and help the customer in the application process step-by-step.

A knowledge management system that has utmost security needs to be a priority here to the bank to ensure that there would be the protection of customers’ data at any cost. Decision trees in finance would require minimal information from the customer’s side to enter and solve the customers’ queries.

3. Reduced wait time 

Customers do not have to wait for answers with decision trees in banking or financial services. On the banking agents’ side, decision trees in banking create a mistake-proof guide for agents to guide customers and come to a resolution within as few as 6 or 7 steps in total.

Decision trees are powered by the knowledge base for customer service and integrated with CRM platforms of the bank auto traverse steps. Customers do not have to repeat information or share more details when auto traversing happens on decision trees. This makes the call duration shorter and more effective compared to no integration with CRM platforms.

4. Self-service in banking  

In-person visits will decrease for simple bank services if decision trees are enabled. One of the challenges in customer support for banking is that the customer does not have much time to dedicate to a straightforward banking service.

Using decision trees in finance helps customers freely access the solutions they need decision trees. They do not have to talk to an agent as the decision tree has guidance steps for customers that are readily available on different platforms when powered by an omnichannel knowledge base like Knowmax.


Decision trees in banking take customer service where ideal customer scenarios can be dreamed of and executed. Decision trees take the customer’s perspective and make the banking agent’s job easy by providing features that make the resolution easy in a few steps.

When the agent is not overburdened, and the customer is given multiple options for self-service on various platforms, the customer experience is automatically elevated.

Jayanti Sabdani

Content Marketer

Writer. Storyteller. Literature Enthusiast. Jayanti leads content marketing initiatives at Knowmax and amalgamates in-depth research, interviewing, and product messaging to craft marketing content. When not working, she can still be found writing ( because that’s what she loves), reading, and trying out different cuisines.

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