With customers moving to online banking services, banks are trying to leverage AI for gaining better customer insights and improving their mobile apps.
FREMONT, CA: The availability of bulk data and the ability of the current technologies to leverage them are fostering the automation of manual processes across industries. Open-source software, fast processing speeds, cloud computing, and the adoption of artificial intelligence (AI) are adding to a massive disruption of the banking industry. Though AI is not new incorporation in banking, the current advancements and incorporations are adding to its impact on the customers. AI is contributing in several ways ranging from less robust applications to complex deep learning algorithms where a machine can add value with significant returns on investments (ROI). With customers moving on to online banking services, banks are striving to provide them with excellent customer services via interactive banking apps and services. Despite generous experience leveraging data insights, banks are yet to create scalable AI strategies that focus on adding value for the customers. Here are the critical factors required to remain relevant in the mobile app market:
Currently, most of the banks are in the early stages of adopting AI strategies. As per the survey by the National Business Research Institute and Narrative Science, 32 percent of financial executives reported that they are already leveraging AI technologies such as recommendation engines, predictive analysis, and voice recognition. The purpose of AI in mobile apps is to make it increasingly personalized, proactive, and refined.
Personalized Mobile App Banking Experience
Banking is a security-critical sector where customers expect secure as well as personalized banking experiences. Financial institutions are focusing on the error-free mobile app while simultaneously working on to add personalization for enhanced customer satisfaction. Intelligent banking apps can provide customers with recommendations and personalized insights at any time. Some of the ways in which AI can personalize the mobile banking experience are as follows:
When provided with custom advice, offers, and services, customers will be more willing to share their personal information. The insights can, after that, be used to improve the services too.
Apart from providing personalized advice through chatbots, AI can help customers plan for events in their future. AI-equipped mobile banking apps can provide custom strategies for users as per their stage of life.
Transactions can be automated and billed as per the dates they are due, thereby eliminating the job of manual entries.
Reminding users over their current balance will assist them in staying within their budget. The reminders can also be set for upcoming expenses or pending bill payments.
Though there are unprecedented potentials for AI-equipped mobile banking apps, there are also a few barriers that must be addressed:
Hindrance to Adoption
Innovations in data analytics equip financial institutions with smart systems that learn on the go. However, incorporating AI in banking apps can be complicated. According to an Efma/Finacle study, 50 percent of the banks consider their legacy system as the biggest challenge that they face, 44 percent cite lack of vision, while 38 percent point to a shortage of experience and skills. Thus financial institutions need to align their data analytics and AI priorities in the strategic vision of their mobile apps and incorporate those strategies in an agile cycle of learning and testing.