AI Disruption in Banking
From the beginnings of AI in the world of chess, the technology has moved away from board games and into the board room. Banks are working closely with technology and fintech companies and investing huge sums to develop and launch AI solutions across a wide range of disciplines to become more efficient, improve compliance, enhance customer engagement, reduce costs and enable employees to be more productive.
The benefits are already starting to flow for the bold early adopters:
- Real time transactional analysis is delivering a better and deeper view of the customer in order to personalise and recommend value added products
- AI powered data software is identifying sales opportunities and providing timely prompts and insights to front line banking relationship managers
- AI and machine learning are delivering a massive boost in providing accurate and superior fraud detection results
- Advanced analytics run over a huge dataset can identify patterns and pull out nefarious activity such as money laundering
- SMS chat-bots are responding to customer enquiries and delivering robo-advice without any human intervention, improving efficiency and lowering cost
But what does the future hold and what are the long-term benefits?
As the sophistication, performance and integration levels of AI technology increase over time it will open up a whole new world of possibilities for automation, by making the machine an active participant in the team.
When machine joins the team everything gets easier, indeed Accenture estimate that the impact of AI technologies could see productivity go by up to 40 percent and enable people to make more efficient use of their time.
Likewise Goldsmiths, University of London suggest that by automating and redeploying humans away from repetitive jobs to tasks that require creativity and innovation, organisations can increase productivity three times over.
As AI, mathematical modelling, and machine learning technologies collide with “big data”, it opens up a vast opportunities to predict where the customer journey will go next and how it can be influenced.
As time goes by and the volume of results data improves precision and predictive capacity, these models will get better and better, enabling faster and more accurate predictions of customer needs, pain, market challenges and opportunities, before customers themselves even realise what lies ahead.
Innovation and Product Development
No longer will product managers face the difficult task of grappling with voluminous amounts of data to understand usage and feedback on existing products and services, purchasing trends, and market demographics.
Instead achieving differentiation will become easier thanks to intuitive mathematical and behavioural customer and product journey mapping, ensuring that product development efforts are focused in the right place and that innovation is boosted by the new potential to reimagine and restructure products and services, in tune with and ahead of customer needs.
Machines haven’t taken over yet.
It’s up to humans to make the big strategic decisions and set the course for how AI and related technologies will help deliver profitable growth and transformational change in banking and financial service delivery.
If you want to be part of the AI evolution, you need to invest now, not just financially, but in helping to shape the future by sharing feedback on lessons learned, imparting insight on where the biggest gains can be made, and improving understanding of what will make the biggest difference in your world.
To find out more about AI disruption in banking download our new eBook here – which includes insights from industry leaders who have invested early.