Connect with us

Banking

THE EVOLVING ROLE OF ARTIFICIAL INTELLIGENCE AND DATA ANALYTICS IN THE BANKING INDUSTRY

Rupa Ramamurthy, Executive Vice President of Banking Operations at Teleperformance India, discusses how embracing data and analytics has become a business priority for the banking industry.

Over the past few years, the financial services industry has made huge strides in adopting new technologies, like artificial intelligence (AI) and data analytics, into its workflow. In fact, the IHS Markit’s ‘Artificial Intelligence in Banking’ report estimates the global AI market will reach $300 billion by 2030[1]. This wide adoption of AI-driven automated solutions has been largely driven by the link between the strategic adoption of such solutions in the banking sector and the results – strategic cost-savings, enhanced operational efficiency, and higher engagement rates with customers and prospects.

Leveraging AI for the Front-Office

Industries across the board are undergoing an AI-enabled digital transformation, to provide a more seamless customer experience, fit for the new generation of hyper-connected consumers. A shift in customer behaviour has redirected interest towards challenger companies, rendering legacy organisations less relevant in today’s radically different, post-pandemic landscape. This is particularly true in the case of financial services, where consumers have come to rely upon banks that allow smooth authentication, provide swift and easy transactions with 24/7 access to their funds, and drive personalised services. Banking is ahead of other industries, in respect of the deployment of AI to lift and automate the customer experience model, with one in five UK consumers now using challenger banks[2].

Certain customer-facing applications of AI are on a staggering growth curve across banking operations, accelerated by the need for instant, online responses. For example, chatbots – being used to support front office operatives and instantly manage and respond to inbound customer queries – are now set to account for 85 per cent of all customer service interactions for financial institutions by 2021[3]. Assisted intelligence solutions, such as click-to-chat technologies, make it possible for banks to streamline the end-to-end customer journey, in a more cost-effective and consistent manner than is possible by a customer service agent.

By implementing analytical technologies, financial institutions can gain a deeper understanding of customer needs to devise customised interactions and offers. As data sources mount, banks can continuously improve resolution times without the need for staff intervention, and achieve 30 per cent higher sales conversion rates as a result[4].

 

Reduction in costs
In the back-office, AI-powered tools are being used to complement the work of human agents by completing the tasks typically prone to human error – thereby minimising operating costs. In fact, it is expected that by 2023, $447 billion will be saved in costs, through the increased adoption of AI by financial institutions.

The automation of processes such as mortgage applications, account openings, and remittances services has become commonplace, as banks seek to drive down costs and increase productivity by limiting customer agent mistakes. Even in 2020, human error remains one of the leading causes of data breaches for financial institutions. As AI is adept at handling unstructured data, error rates can be significantly reduced, as well as the significant cost of resolving them.

 

Fraud Detection
The banking industry is extremely vulnerable to threats posed by fraudsters. Therefore, fraud detection and mitigation have become a top priority for all financial institutions. AI now plays a leading role in decreasing rates of false positives, by reducing the number of missed alerts signalled by transaction monitoring systems – preventing fraudulent attempts and reducing payments fraud.

Through machine learning, AI is able to interpret trend based-insights, making it possible to determine whether a transaction is fraudulent or not – in fact 63 per cent of financial institutions say AI is capable of preventing fraud before it happens[5]. Automated programmes are capable of carrying out security checks accurately, helping to keep customers’ accounts and the financial ecosystem safe. As digital identities become increasingly important, the role of banks is expanding to help customers safely verify their identities with Multi-Factor Authentication (MFA).

 

Using Data for Good
Whilst personalised user experiences can make the customer feel their providers understand their needs, financial organisations should use data insights to make responsible recommendations. By tracking customer’s spending and purchase history, AI can help customers make more informed and appropriate decisions, and to not encourage people to take on debts they cannot repay.


Post-Pandemic Banking

The post-pandemic marketplace will continue to see AI flourish as a business differentiator. As a multi-faceted technology, AI has transformed traditional banking models and given way to a new breed of challenger banks, setting new standards for customer experience. Financial organisations are leaning on the technology to strengthen their algorithms, defend against fraud, and premeditate and address customer needs – with the ultimate business objective to cement their reputation as a reliable and resilient partner.

[1] https://news.ihsmarkit.com/prviewer/release_only/slug/technology-global-business-value-artificial-intelligence-banking-reach-300-billion-203
[2] https://www.fintechmagazine.com/fintech/why-one-five-uk-consumers-are-now-using-challenger-banks
[3] https://www.inc.com/rebecca-hinds/by-2020-youre-more-likely-to-have-a-conversation-with-this-than-with-your-spouse.html
[4] https://www.gartner.com/en/newsroom/press-releases/2018-02-19-gartner-says-25-percent-of-customer-service-operations-will-use-virtual-customer-assistants-by-2020
[5] https://www.cybersecurityintelligence.com/blog/artificial-and-augmented-intelligence-is-re-making-banking-4728.html

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Banking

WHY BANKS NEED TO EMBRACE WELLBEING IN THE DIGITAL EXPERIENCE

Howard Pull, Head of Digital Transformation Strategy at MullenLowe Profero

 

The impact of the COVID-19 crisis on the economy has been huge. Over the past six months, youth unemployment figures have dropped, wages have stagnated and GDP has fallen by a record 20.4%. The drop in GDP is worse than the 2008 Financial Crisis, the Winter of Discontent and the Great Depression.

While the furlough scheme and other government measures have provided some much-needed financial support, the prevailing social and economic conditions have made money worries increasingly common. According to a recent survey from MullenLowe Profero, during the pandemic 40% of 18-25-year-olds are afraid to look at their bank account, with a further 40% stating that thinking about their money has a negative impact on their own personal wellbeing.

In response to these rising financial concerns from account holders, it is clear that banks need to help people – especially young people – feel more confident in managing their money. In particular, banks need to provide more educational support to their customers about how they can make the right financial decisions. This means designing tools and support services to enable more people to effectively manage their finances.

With 60% of consumers aged 18-25 believing that banks should help them have the capacity to absorb a financial shock, financial institutions also need to adapt their products and services to meet the needs of more uncertain account holders.

Adapting services, however, is easier said than done. The pandemic has radically shaped consumer behaviours and therefore the old rules no longer apply. For example, while consumers in the past may have preferred to discuss financial matters in person at a bank branch, risk of infection and the widespread use of digital tools has meant that the majority of young people want banks to provide wellbeing services online.

Digital experiences are also important to the future success of any bank. According to MullenLowe Profero’s report, digital experience is now the number one reason why young people choose a bank. Therefore, it is clear that banks during the pandemic and beyond need to reevaluate their operations and shape their personal wellbeing strategies around digital tools.

 

Community and Global Wellbeing

MullenLowe Profero’s report into financial wellbeing found that young people weren’t just concerned with their own personal wellbeing. They were also concerned about the importance of community and global wellbeing too. In fact, over half of 18-25-year-olds agree that the events of the last few months have made them seek out brands that do better for the world, with another 50% stating that the importance of a local community has increased during the pandemic.

Community wellbeing is concerned with the importance of local areas and the businesses and organisations that are based within them, whereas global wellbeing is concerned about the entire world. For banks, showing support for areas local to their branches and customers as well as issues affecting the globe such as the climate crisis is important to maintaining the trust and support of account holders.

Focussing banks on concerns around community and global wellbeing requires banks to assess their impact on the wider world. In other words, it forces banks to check who they support and where their money could be better placed. For example, young people want to be recognised for their positive behaviours. 56% of 18-25-year-olds want rewards and benefits for purchasing ethical and sustainable products and services.

The findings of the report found that young people across the board want financial institutions to reflect their values and to help them manage their finances. With COVID-19 continuing to wreak havoc on our day to day lives, banks can provide much-needed support by offering educational help as well as creating products and services that actively manage an account holder’s finances. They can also step in and provide support to the wider community and world by taking measures to reward ethical and sustainable behaviours.

 

Continue Reading

Banking

IMPROVING THE BANKING EXPERIENCE THROUGH INFORMATIVE AND ENGAGING VISUAL COMMUNICATIONS

Javier Lopez, General Manager Vertical Solutions, OKI Europe Ltd

 

Banks play an integral role in daily life. However, everyday opportunities such as attracting new customers into branches to open an account, or promoting new offers and services to existing customers, can be lengthy, expensive and cumbersome processes – especially when tailoring communications to the specific requirements of each branch, or differing customer needs.

Quickly creating and adapting in-branch visual communications to communicate and educate cost effectively while remaining on brand can be a challenge, especially for banks that have networks of branches and print their visual communications centrally or use third-party suppliers.

 

Building trust through signage

Visual communications can help build trust and satisfaction between you and your customers.  The ability to create and print personalised communications on demand can not only instil confidence in your brand, it can also offer the flexibility to quickly adapt to financial trends and fluctuations in interest rates. This is particularly important in today’s volatile market, so that you can keep your customers informed while remaining competitive.

Javier Lopez

Printing in-branch and on-demand is an immediate and cost-effective way for banks to communicate with customers. With the right printer on-site, branch staff can easily create and print signage and customer communications as well as everyday documentation to a professional quality as and when needed. This saves on the cost of third-party suppliers and eliminates lead times for essential signage.

The ability to print a comprehensive range of collaterals in-house including freestanding and hanging banners, posters, self-adhesive floor and window stickers, as well as personalised leaflets and direct mailers, can help keep customers informed about the latest services and offers. It can also be used to remind both customers and staff to adhere to social distancing guidelines. Furthermore, the same printer can be used for day-to-day documents such as personalised mortgage or loan offers.

 

A message that sticks

As the world adjusts to a new normality, OKI Europe Ltd recognises the challenges banks face when encouraging social distancing and has teamed up with Floralabels to offer free* social distancing media and artwork to create self-adhesive floor stickers that can be printed quickly and easily from an A3 colour printer such as the C800 Series.  Floor stickers can help ensure customers maintain safe distances while queuing at counters, kiosks and ATMs. The free stickers include self-adhesive floor circles (285 x 285mm) and rectangular floor banners in two sizes (215 x 900mm and 297 x 1,320 mm) with various designs and messaging options to choose from.

 

Achieving ROI with a do-it-all device

When it comes to printing in-branch, implementing a printer with unrivalled media flexibility will provide the best return-on-investment. Not only will the bank be saving on printing and delivery time and costs, it will also save on storage space or potential wastage as well as offering the flexibility to be more reactive to market trends in a timely manner.

OKI’s multi award-winning C800 Series A3 colour printer is designed to take up a minimal footprint and will supply everything from 1.3m metre hanging and freestanding banners to posters, self-adhesive floor stickers, window stickers, leaflets, flyers and much more on a diverse range of materials. Featuring OKI’s pioneering digital LED technology, the C800 Series delivers professional quality results, at high speed and on-demand.

Banks are vital to helping people and businesses prosper, supporting economic growth. Investing in cost-effective do-it-all devices that enable the fast rollout of eye-catching, professional quality collateral will help banks and their customers thrive.

 

Continue Reading

Magazine

Partner Events

Trending

Finance2 days ago

THE OUTPERFORMER’S APPROACH TO FINANCIAL PROCESS AUTOMATION

By Michelle Trapani, Director of Product Marketing at Kofax   Achieving more with less is the mantra of our times....

Banking2 days ago

WHY BANKS NEED TO EMBRACE WELLBEING IN THE DIGITAL EXPERIENCE

Howard Pull, Head of Digital Transformation Strategy at MullenLowe Profero   The impact of the COVID-19 crisis on the economy...

Finance2 days ago

SAFEGUARD YOURSELF FROM FINANCIAL STRUGGLE AND UNCERTAINTY IN THE CASE OF DEMENTIA

Despite the rising incidence of dementia globally – The World Health Organization (WHO) estimates one new case every three seconds...

Technology2 days ago

WHY TECHNOLOGY IS KEY TO THE FUTURE OF AUDITING

By Piers Wilson, Head of Product Management at Huntsman Security   The Financial Reporting Council (FRC), which is responsible for corporate...

Finance3 days ago

BOOM OR BUST: HOW THE FINANCIAL SERVICES SECTOR IS COPING

by Simon Black, CEO, Awaken Intelligence   Covid-19 has had an impact across all industries and businesses are feeling the...

Business3 days ago

BACK TO SCHOOL – CEOS NEED TO LEARN A NEW LANGUAGE, FAST!

By Simon Axon, Financial Services Industry Consulting practice lead in EMEA, Teradata   Chief Executive Officers of banks know all...

Business3 days ago

REVITALISING THE TOKEN MARKET

By Gavin Smith, CEO at Panxora   With interest rates near zero and fears that whipsawing stock markets are set for...

Business3 days ago

A SLEEPING DIGITAL GIANT WAKES? 4 KEY TRENDS ACCELERATING PAYMENTS TRANSFORMATION IN THE US

Lauren Jones, International Payments Ambassador, Icon Solutions   The US payments industry is undoubtedly ripe for change. Before the unprecedented...

Finance3 days ago

CAN ACCOUNTING DEPARTMENTS WIN THE FIGHT AGAINST FRAUD?

Magali Michel, Director, Yooz   Despite the implementation of increasingly sophisticated security systems, corporate fraud continues to gain ground: half...

Finance3 days ago

REMOTE INVOICE CAPTURE: ADAPTING TO THE NEW WAY OF WORKING

Author: James Adie, Vice President EMEA Sales at Ephesoft   When the government announced a country-wide lockdown on March 23,...

News3 days ago

GALA TECHNOLOGY SELECTS NUAPAY TO ENABLE OPEN BANKING PAYMENTS

Nuapay, powered by Sentenial, today announces it has been chosen by Gala Technology, a payment security solution specialist, to provide Open...

Top 104 days ago

THE ROLE OF OPEN SOURCE IN UNCERTAIN TIMES

Kris Sharma, Finance Sector Lead, Canonical   Financial services are an important part of the economy and play a wider...

Wealth Management4 days ago

SIMPLIFYING THE RETIREMENT FUND DEATH CLAIMS PROCESS

By Dolana Conco, Regional Executive at Alexander Forbes   Losing a loved one is one of the most difficult experiences...

News4 days ago

THE EMBEDDED BENEFITS IN ESEF DIGITAL FINANCIAL REPORTING

The inclusion of a simple link delivers serious gains in transparency, trust and real time verifiability for the whole financial...

News4 days ago

YAPILY AND OZONE API PARTNERSHIP MARKS TURNING POINT IN OPEN BANKING ADOPTION FOR BANKS

Open banking leader Yapily has today announced a strategic partnership with Ozone API, the leading API standards-based platform, to enable banks and...

News5 days ago

PROGRESSIVE SCENARIO PLANNING FOR THE LIBOR TRANSITION

James Gannaway, Head of Financial Services, Board International   The Financial Stability Board have announced that disruption to markets caused...

News5 days ago

AS DIGITAL TRANSFORMATION ACCELERATES, ENTRUST DATACARD BECOMES “ENTRUST”

Entrust name and identity reflect the critical need for trust at the heart of the digital transformation – and the...

Finance5 days ago

HOW TO TAME YOUR FINANCES TO REGAIN CONTROL OF YOUR MONEY

Credit, combined with bad spending habits, means many South Africans find themselves living from payday to payday, but you can...

Business5 days ago

HOW DATA VIRTUALISATION CAN HELP THE FS INDUSTRY REGAIN COMPLIANCE CONTROL

Charles Southwood, Regional VP – Northern Europe and MEA at Denodo    In recent years, the financial services (FS) sector has witnessed a...

Finance6 days ago

HOW TECHNOLOGY IS CHANGING ACCOUNTING

Mike Whitmire is Co-founder and CEO of FloQast,   The fundamentals of accounting have been around for hundreds of years....

Trending