Artificial intelligence (AI) is going to become the competitive advantage for banks in the future. In fact, a majority of banks feel that AI is going to have a significant impact in the coming year as a disruptive technology. Progressive banks are getting on board the AI train, and now intelligent digital assistants are omnipresent in banking – from payments, to money management, and financial advice as well. While progressive and challenger banks are already off the starting block, it is expected that their traditional counterparts will soon follow suit.
AI will not only transform the front end, customer facing technology, but also the back end technology platforms. On the front end, banking will transform by implementing an AI platform that uses machine learning; digitally savvy customers will be treated to a differentiated customer experience that’ll get better, the more they interact with the bank on different platforms. In terms of internal processes, banks will drive efficiency with the automation and innovation brought in by these self-learning platforms. Employees will be freed up from doing mundane tasks to focus more on product/service innovation.
As there are advances in technology, there is an increase in the number of attacks on customer data. AI has stepped up to the plate in the area of banking security as well. Progressive banks have already interweaved AI into their security framework that uses machine learning to upgrade the security measures in real-time; this provides banks with a sizable protection from theft and fraud. While AI is going to be one amongst the game-changing technologies for 2017, banks will need to understand that the success driven by AI depends on the adroit execution of digital technologies, such as bid data, automation, and cloud to name a few. Banks will be looking to integrate AI into their omni channel strategy to create more conversational interfaces for their customers; it won’t be a far stretch of the imagination to say that 2017 might just be the year for intelligent robo advisors for all your financial queries.