Digital transformation prevails in every facet of our lives. Total digitalization may sound adventurous to centuries-old companies like banks and financial institutions where things look framed, but we see the overall transformation is underway. With the most successful initiatives such as online banking, digital onboarding, and many more, the digital-first approach seems highly desirable to clients; therefore, banks and other financial institutions proceeded to implement it. The technology agendas are updated, and the vast majority of the financial services providers are actively working to offer customers better and more cost-effective services. Well, “Rome wasn’t built in a day”, and many continue their search for legacy systems improvement.
We must admit that the attempts to adopt AI should be more intensive and backed by solid investment to utilize the power of AI-enabled technologies. This is why many fintech startups have aroused in the recent decade to offer a sophisticated AI-driven financial experience. To keep their fair share of the market, banks must catch up and reimagine some of the processes to ride the digital-first wave alongside their tech-savvy contradictions.
Here are a few thoughts on why banks need to integrate AI in their strive for success.
The Added Value of Digital AI Banks
According to McKinsey research, the global potential added value from AI integration would exceed 1 trillion USD. Why is that, and how can it be reached? AI helps with back- and front-office processes and business analyses. Harnessing disparate silos of information and utilizing valuable insights, the data unlock further business opportunities and make personalization an easy task. With AI, digital banks can be on top of their service delivery, management of expenses, internal connectivity, and regulatory compliance. This will lead to less time spent on manual data processing, cost optimization, and information sharing. Here, AI-enabled services and seamless integration within bank systems are the way to go.
Moving Fast and Furious with AI
Fast is usually not the term used to describe a bank-related experience. Why and how can Artificial intelligence apps bring value in this direction? When AI technologies are integrated to improve risk assessment, the decision-making processes can be accelerated so people would see a significant difference in customer service. In today‘s fast-paced world, this is an integral part of essential business operations, and there is no way around it. Considering pivoting into the AI world would benefit the financial company and its customers.
Digital Personalization is King
Equally important to providing financial services fast is offering personalized solutions. Coming up with such for thousands or hundreds of thousands of customers is daunting. Not for smart chatbots, though. AI recognizes behavioral patterns and needs of customers via data analysis to proactively come up with personalized offerings. Therefore, automation and enhancing customer service with conversational AI helps engage customers 24/7 with robust support and virtual sales assistants. With that in hand, banks and financial institutions can reveal new and untapped opportunities for growth. Based on the improved possibilities of AI analysis, the technology will unlock extra value for the banking sector globally.
Is the Way Forward all Digital?
As different generations express their needs for flexible banking and financial services, consuming diverse offerings in a multichannel environment, companies need to consider them and find out how to balance “brick and mortar,” online, and AI. They should adopt advanced technologies like NLU, NLP, ML, and native cloud applications, because of the high demand in recent years. Other issues, such as cybercrime, fraud, and KYC, must be addressed regardless of the complexity of technology. As far as implementing AI-enabled solutions, a trusted IT partner like Sirma will make things happen.