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Top 3 2018 Predictions for Artificial Intelligence in Banking

Top 3 2018 Predictions for Artificial Intelligence in Banking

2018 is going to be an exciting year for the financial services industry, especially for banks. Banks are investing massively in digital transformation with the primary objective of improving customer experience. Implementing artificial intelligence (AI) to improve existing operational processes is going to be a top priority for many banks too.

 

AI Financial Reasons

 

1. AI Powered Customer Service Chatbots

AI and Machine Learning-powered agents are the recent applications of AI in driving intelligent customer service. Beginning in 2017, Banks have been using AI chatbots internally to train and assist new hires in customer service teams. These chatbots can improve the customer service agent’s efficiency and productivity by taking care of routine queries and by quickly looking up information from the bank’s knowledge base.

According to industry survey reports, AI implementations in customer support operations have brought down supports costs by up to 28% in the very first year. At the other side, AI chatbots that are customer facing have significantly reduced response time and improved accuracy of information while responding to customer inquiries. So, AI deployments in customer service are set to increase exponentially in 2018.

 

2. Compliance and Risk Management Using Artificial Intelligence

Real-time risk and compliance management are possible with AI-powered compliance management solutions. Banks collect a huge amount of data and these complex unstructured and structured data has to be analyzed in real-time and an intelligent, actionable “Next Step” to be identified. This can be achieved effectively with a smart AI platform. AI compliance solutions can collect data from regulatory feeds and compare it with the company’s internal data and suggest the right next steps.

AI implementations can track money laundering, wire fraud, etc. in real-time and flag suspicious activities or alert appropriate departments within the bank to initiate action.

These solutions will also reduce the time spent by CXOs on operations and business risk management, by providing information in real-time, quickly. This will allow top management more time to focus on strategic business objectives.

 

3. Personalized Customer Experiences

 

What is the next big thing in marketing

 

Retail shopping has transformed customer experience with in-store offers, virtual reality powered changing rooms, in-store product comparison and more. Interacting with these gadgets and technology has increased the expectations of banking customers as well. Banks now have to adapt to be in line with these technology trends or be left behind. AI-powered chatbots can improve a bank’s customer experience by having quick, intelligent and personalized conversations.

AI-powered product recommendation engines can analyze the past history of customers and can make smart recommendations to customers on value added services such as insurance, investment plans, credit card, loans etc. This helps in improving banks’ top line.

The need for AI in banking sales and marketing to engage prospects quickly and effectively, identify their needs and opportunities and present customized offerings is immense.

 

Conclusion

From answering queries to enabling payments and making useful recommendations, AI agents will handle the most fundamental aspects of customer engagement in banking from 2018-19. Implementation of AI-powered conversational bots in various departments of a bank is key to retaining a competitive edge. By 2020 AI will play a crucial role in the entire customer journey from acquisition to retention.

 

Are you not sure how to choose the right conversational AI chatbot to power your customer experience or reduce your support costs? Contact us (sales@payjo.co) and our experts will help you to choose the right solution for your bank.

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