How can banks leverage the power of AI to strengthen their operations?

Mark Aldred, Vice President of Sales, International at Auriga

The phrase ‘artificial intelligence’ (AI) may ring alarm bells for some, but others see this as an opportunity to change the future of banking, and even the world. PwC found that by 2030, AI could contribute up to $15.7 trillion to the global economy. So, it only makes sense that banks and other financial institutions harness its power.

There are natural reservations about AI but these are being addressed by regulators and how individuals and organisations are gaining more confidence in using AI.

With the EU AI Act becoming law this year, there are clearer guardrails about how AI-powered apps and systems are developed that everyone can recognise. These new rules can reassure banks and their customers about how AI can be applied correctly. Importantly, the EU AI Act, which will influence regulations elsewhere, ensures that AI systems are safe, free of bias and operate in an ethical way. As such, AI can be a powerful, but safe, tool for banks to use and they should not be shy about experimenting with how the technology can improve customer experience as well as transform operational processes.

Mark Aldred

One great opportunity is how new types of AI like generative AI offer the opportunity to make digital banking experiences less impersonal and more empathetic to an individual customer.

The personalised banking experience with AI

It is common for customers to feel as if their banking experience is not tailored to their needs;  specifically, customers believe that digital channels are impersonal. Banks are under pressure to ensure that each interaction with customers is personalised. 

To overcome this, banks should integrate AI and machine learning into their operations. By doing so, they can analyse the enormous amounts of customer data they collect on each touch point to create tailored services. Through leveraging these technologies, banks are able to instantly recognise what customers need no matter if they use in person banking, web or mobile banking. Beneficially, this also gives customers a truly omnichannel experience. 

Further, as AI and machine learning monitor customer’s behaviour, it can stop fraudulent activity. If a suspicious transaction is made, the AI can step in and halt the payment before it happens to ensure that customers are protected. 

Creating an AI-powered bank branch

Even though more customers are using online banking services, the physical bank branch is still important for many. Creating an AI-powered branch with digital self-service options is the future. 

Deploying AI-driven virtual assistants can help customers with all of their banking needs. This is done through these self-service systems understanding their customers and their needs on a much deeper level to guide them more intelligently than ever before. 

As this technology can be integrated right into assisted digital teller solutions , smart virtual assistants can be used to provide financial management advice for customers, giving them another, more intricate, layer of service. 

What is the future of banking?

Customers are not only the ones who benefit from deploying AI into operations, the branch’s back office operations can also be significantly improved. With AI, financial services institutions can begin to deploy a new generation of predictive analytics which uses powerful AI technology to improve their operational performance. 

Going even further, AI can be used to ensure a more sustainable understanding of self-service device lifecycles. AI technology can accurately identify use patterns of an ATM and predict when those devices will need maintenance. As well as this, through continually monitoring the ATM, cash supply can also be forecasted, which makes sure that the device has the correct amount of cash in their machines. This works to create a more efficient cash replenishment process. Additionally, this also ensures that customers are able to access cash in the ATM when they need to. This reduces carbon emissions from transporting cash to refill ATMs, including reducing waste related to unnecessary order management costs by 25 percent. This not only reduces errors, but also streamlines operations.

The future of banking is AI-powered and efficient for both financial services institutions and customers. Banks must audit their current technology, integrate AI, and machine learning into their operations to ensure they are providing best-in-class service to their customers. There is untapped potential for AI in banking.

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