Banks and other financial service (FS) providers aren’t necessarily known for their use of cutting-edge technology. That’s the perception anyway, held back by legacy infrastructures, multiple siloed systems and an inability to innovate easily due to the sheer size of the organisation.
But our new research into the use of AI in FS has revealed some possibly surprising results – 83% of banks have already evaluated AI and machine learning, while 67% have actively deployed them. Banks are smart and know they are under pressure to modernise and deliver a better customer experience, and they have realised that AI and machine learning are some of the most effective ways to do that.
But the study - ‘Enhanced Bankers – The Impact of AI’ – also revealed that some FS providers are not confident about how best to deploy AI in terms of improving business processes. 83% of respondents said they were unaware of how to apply the technology to solve business problems.
This is a significant statistic and addressing this uncertainty is key to the continued success of AI projects in banks all over the world. AI delivers such a wide and varied impact that it can tempting to be too general when using it. If business leaders can apply AI and machine learning to specific elements of their business, then even better results will emerge.
Many of the banks in our research had identified areas in which they felt AI could help them the most. 87% of respondents said that it would be highly impactful if an AI engine could spot relevant events that led to engaging with a client and closing a deal.
Using AI to anticipate market events is a powerful way of delivering exceptional customer service. Anything a bank can do to make its customers feel special and valued will be a major win with those customers, especially if it ultimately has an impact on their bottom line.
Sourcing new leads and opportunities is exactly the type of impact AI can have in FS. Just as Amazon continually delights its consumer customers by using AI and data to understand and anticipate their needs, so banks can use AI in a very similar way.
Much of corporate FS is fast-paced and highly competitive, so customer retention is an on-going challenge. But by using AI to deliver actionable insight, then banks can truly get ahead of the competition and deliver an exceptional experience to customers that means they have no reason to look elsewhere.
Our research also covered how FS organisations wanted AI insight delivered to them and how AI integrated with existing systems. A massive majority (84%) said that a real-time 360° Client View, combining internal and external data was either important (17%) or very important (67%).
Another large majority of bankers wanted AI integrated into current workflows as much as possible, with insight delivered to them using existing methods. 100% of the 200 tier one global banks we spoke with said they would want AI-driven recommendations via email, while 83% wanted them within their CRM system.
What became clear from the report is that the potential for AI to transform certain practices and processes within banking is tremendous. Bankers are increasingly aware of how AI and machine learning can help them and want to use it to deliver an outstanding customer experience.
But for AI to really deliver for banks and other FS providers it must be used to address specific business challenges and it must be integrated with current workflows. If it is used in such a way, then the sky is the limit for how AI can transform banking.
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