Evolving with Technology and Time: Modern Day AI-Driven Banks

Banking CIO Outlook | Thursday, June 27, 2019

Artificial intelligence and banking industry are coming together to deliver the best services and experience.

FREMONT, CA: Artificial intelligence is a revolutionary technology without any doubts. Although the financial sector is yet to realize the benefits from the adoption of artificial intelligence fully, it is clear that it will be a significant factor in the growth of retail banks soon. The technology in itself is still in the developmental stage but is sufficient to drive in transformational changes in many industries, including the financial sector. A study recently reported that AI could help banks save over 22% of operating costs. Retail banks are looking forward to reshaping themselves in accordance with AI, and the technology can give a push to banks in the following ways.

• Orienting Policies to Enable Better Customer Acquisition

Steep competition and continuous entry of new players into the banking sector means banks will have to increase the rate of acquisition to stay in business and enable growth. Banks need to target the younger population, and AI can assist banks in doing exactly the same. The digital data of modern customers can provide insights into their expectations. AI can analyze the data to convey spending patterns and trends to banks. Designing services accordingly will enable banks to target and convert customers.

• Improving Customer Relationship

Maintaining good relationships with customers is not a simple task, but it is essential if banks want loyal customers. Artificial intelligence can improve the customer experience by predicting customer requirements and effective segmentation strategies. Personalized services and automated interaction through chatbots assist banks in better customer engagement and bonding.

• Predictive Analysis and Better Utilization of funds

If the deposits with a bank grow, revenue generation grows. With the help of artificial intelligence, banks can put the available customer and client funds to better use. Predictive Analysis abilities of AI enable it to predict the market trend in the future quite accurately. Banks can take advantage of this feature to utilize finances in meaningful ways.

By engaging with customers, banks can deliver better goods. Altering business models to add artificial intelligence into the mix will prove to be the best step forward for banks. Done cautiously with the right amount of expertise, will allow banks to adapt and innovate with the help of AI.

Weekly Brief

Read Also