Banks may be ahead of the game using artificial intelligence (AI) in some corners of the organization, but many still do not have the customer insight required to act in real time with retail customers.
Here are five facts about AI in banking to get you thinking about how to win the customer experience game:
1. Old Hat.
AI is old hat in banking. Think about algorithmic trading on Wall Street – or the chatbot on your mobile banking app. Banks are the leading adopters outside of any industry except tech companies themselves. According to Citi, the banking & securities sector is the biggest spender on external AI services (apart from tech)
2. Differentiate or Die.
AI is critical for differentiation - 76% of FSI CXOs agree, according the World Economic Forum/Deloitte. And, given the competitive environment that the banks are facing, this makes complete sense. The benchmark for excellence in a banking customer experience is not Bank A vs. Bank B – it is whatever the best app is on the customer’s device. Moreover, digital-first competitors – like Amazon, Google and Apple, as well as the fintechs – have been moving into banks’ traditional space, fueled by their ability to deliver personalized experiences in real time
3. Money Talks.
Not using AI leaves massive money on the table. Banks know they have to deliver personalized experiences – in context and in real time – just as customers are accustomed to best-in-class CX from any industry in order to grow wallet share. And, they know that any solution has to be scalable and fast – with the ability to deliver a custom message in milliseconds. The stakes driving this are huge: Bain Research said that 25-50% of new card purchases are lost to competition through hidden defection.
4. Get Real.
Few banks have the required insight to act in real time. With multiple channels to customers, and multiple underlying systems associated with specific banking products, it can be difficult – if not impossible – to have real time insight into customers’ activities, behaviors and preferences. Going outside of bank channels, the American Banker Association found that 25% of banks have no plan to use social media for monitoring customer complaints or providing customer service.
5. Data Driven.
Most importantly, differentiation in retail banking begins with client insight. The first task is to connect and gather the information that is generated across those channels. Then it needs to be standardized. The next task is to contextualize that information in terms of the profile of the customer that the bank has created from its relationship with that customer. Once the activity is contextualized, then it can be enriched and acted upon – whether through AI, or supporting the front line in engaging with customers, or digital marketers in analyzing the impact of campaigns.
Data is a bank’s greatest asset. But it is human creativity and innovation that will design new products and business models in which customers will be engaged, and AI can drive the value.
To read more about how to achieve real-time customer insights, click below.