bankingciooutlook

Personalization on Demand, Know What Artificial Intelligence is Doing!

By Banking CIO Outlook | Tuesday, August 20, 2019

AI in BankingPersonalization is vital to tailor effective customer relationships. Consumers are more likely to purchase from brands that offer personalized experiences, adding to its importance.

FREMONT, CA: With the evolution of digital banking and fintech, the financial industry is facing a massive shift in the way people bank. Innovations in technology, including Artificial Intelligence (AI) has enabled banks and financial institutions to redefine what banking means to consumers today. AI, with its cognitive and intuitive brilliance is rewriting the business landscape. The most significant transformation in the industry happened in how banks interact with their customers. Financial institutions are using it in a customer experience strategy to draw on vast volumes of data in a game-changing way to personalize and elevate customer engagement.

Artificial intelligence-enabled solutions can analyze gigantic amounts of data to understand the context and history of a customer. This will help customer service representative to respond accurately to each customer concerns. Customer service improves only when customer experience is available round the clock in multiple channels. Only AI can make that possible for brands in a cost-effective manner through chatbots and virtual assistants. Financial firms are already adopting innovative technological advancements that focus on personalization.

Check out: Top Artificial Intelligence Companies

The evolution of analytical tools and techniques are supporting AI in the effort of better knowing individual customers. Big data is provisioning customization in a way that is previously unseen in banking. Many leading financial firms are collaborating with fintech startups who provide solutions and expertise in areas outside traditional banking. They are offering a broad range of services from consultation, analysis, and technical support to the development of digital platforms. By all these means, banks are meeting their customers’ expectations providing with quality banking services.

Modern financial firms are expanding call center durations to keep up with customers as customers are becoming more demanding and want help exactly when they need it, not when the brand decides it is available. Those that have already implemented conversational AI can reduce the availability of their human assistants as one of the steps towards digital transformation. In addition to the cost savings associated with this, organizations are enhancing customer satisfaction by supplying an always-available company representative and personalized customer service. AI can help banks better connect with their customers, but it can also help them identify new ones. This process involves comparing demographics and traits of existing customers base to predict which other consumers are most likely to convert.

Conversational AI can provide the best for both customers and companies. When it comes to service and providing consistent information, there can be disparities often based on the employee’s experience, mood, or other external factors. With conversational AI, that inconsistency is removed, and it will provide reliable, predictable responses each time. Banks are even developing their virtual agent using AI to offer a standard, consistent guidance to customers, which also avoids the need to hire and train more customer service personnel. Conversational AI is also being customized and trained today to predict and offer service intelligently. The predictive element of technology was something that was unimaginable a few years ago.

In today's aggressively competitive market environment that financial firms operate, firms need to work harder to understand their customers, to engage with them, and to reward them appropriately with personalized offerings. AI may be a set of technologies, but it is key to more human customer experience. Through the application of AI, banks can offer enhanced products, services, communications, and programs that achieve the ultimate in customer behavior, brand loyalty.

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