- Siddhraj Thaker
- 836
-
AI & ML
Image Courtesy: Unsplash
Artificial intelligence driven technologies are becoming an intrinsic part of the world we live in. That’s why banks need to deploy these technologies at scale to adapt and remain relevant.
While banks may experiment with AI, they’ve failed to move from the experimentation phase and struggle to scale AI technologies across the organization. Reasons for this include:
- Lack of clear strategy
- Inflexible or inadequate investment
- Fragmented data assets
- Legacy operating models
These not only restrict organizations from scaling up but also hamper the synchronization of business and technology teams.
Why Must Banks Embrace AI?
As far as the history of banking goes, banks have always adapted to the latest technology innovations to better serve their customers. This is the reason why ATMs were adopted in the 1960s, card payments in the 1970s, and online banking in the 2000s.
By adopting AI technologies in banking, higher automation can be implemented that will mitigate and almost nullify human error and will speed up the banking process in a controlled manner.
Broadly speaking, AI technologies can dramatically improve banks’ ability to achieve the following 4 key outcomes:
- Higher profits
- Large scale personalization
- Unique omnichannel customer journeys
- Speedy innovation cycles
Banks that fail to make AI central to their core strategy and processes will be at a higher risk of being deserted by their customers and overtaken by the competition.
What do banks look like in the future?
To meet the customers’ increasing demands and to surpass competitive threats in an AI-powered digital world, banks will offer experiences and schemes that are intelligent, personalized, and authentically omnichannel. Keeping in mind that these experiences will be a unique blend of banking capabilities that include relevant products and services, some of which go even beyond banking.
Final Thoughts
AI-first banks will soon become a reality. Digital engagement has accelerated post COVID-19 pandemic, allowing big-tech companies to enter financial services. Banks that are still on the fence about becoming AI-centric must complete the final step of adopting AI to build a stronger foundation that facilitates better value propositions and creates distinctive customer experiences.
