AI’s Impact on the Banking Industry
It’s no surprise that banks are adopting AI to help in a variety of ways.
Many banks are embracing AI to stay ahead of competition, providing greater customer service. Ultimately, those that invest in AI to increase customer satisfaction will outperform their competition, enabling frictionless, 24/7 customer interactions.
With such a large and distributed customer base, banks need to continue to innovate in order to best service their customers. One way they are doing this is with AI to improve products and offerings for their customers.
Applications of AI in Banking
The two main channels where banks are using artificial intelligence to save on costs: are front office (conversational banking) and middle office (anti-fraud).
- Banks are leveraging AI on the front end to smooth customer touch points, mimic live employees through Virtual Agents, deepen customer relationships, and provide personalized insights and recommendations.
- AI increases customer service wait time efficiency due to a decrease in repetitive tasks.
- AI provides insights into customer touch points, allowing banks to monitor conversations as they unfold, for real-time decision making.
- AI is also being implemented by banks within middle-office functions to detect and prevent payments fraud and to improve processes for anti-money laundering and know-your-customer regulatory checks.
Investing in Natural Language Processing (NLP) Technologies
Another way banks are looking to improve their customer and banking experience is by enhancing conversations with intelligent means. By looking at language patterns in recognition and working towards developing a conversational AI model that can interact with the customers and help them reach their financial goals.
Many banks and financial Institutions are adopting conversational AI to help their customers with a variety of tasks. Voca’s Virtual Agents engage and interact with customers, 24/7, breaking down the idea of traditional banking hours. Customers are becoming increasingly comfortable conversing with Virtual Agents, especially with sensitive subjects such as debt delinquencies, making this a logical, next step for banks to invest in.
Adopting AI does not need to be scary. Many believe that implementing AI is a lengthy process and requires long technical processes, including investing in in-house expertise. With Voca, enabling AI for many use cases could take as little as a week, with all heavy lifting on us. Data is also provided in an easy-to-read platform. If the data is there but hard to access, it can make it challenging to update or improve processes.
People fear being replaced by AI and losing their jobs. But by using AI to help handle certain tasks, it frees up call center agents to focus on higher value assignments, decreasing repetition. By adopting an augmented intelligence approach call center agents are able to handle higher value calls that require human interaction.
At the End of the Day…
It’s important to make sure companies strike a good balance between keeping costs low for their members, but still allow the company to move forward with the adoption of various AI technologies. This balance will help companies improve and provide excellent customer service and customer products for their members. The adoption of AI in banking is continuing to transform companies in the industry, provide greater levels of value and more personalized experiences for their customers, reduce risks and increase opportunities involved in being the financial engines of our modern economy.