Artificial intelligence has already made its mark on the banking business. Applications like chatbots are quickly coming to dominate customer service interactions. Virtual assistants and automated, personalized reviews provide customers with instant answers to their banking questions. These applications also help customers evaluate products and even allocate investment portfolios. More and more, these services, which once required a phone call or an in-person meeting, can be procured via an app instantaneously.
Banks are in a race for customers. As fintech advances, online banking increasingly makes a local institution unnecessary, and competition crowds the space, banks must offer more than competitive interest rates, They must also offer the convenience of lightning speed service, and service of this speed can only be provided by AI.
By 2020, more than 85 percent of banking customer service interactions will be conducted with human involvement, and TechEmerce believes that chatbots will become the primary interaction tool within the next five years. Chatbots provide banks with a golden opportunity for collecting customer data. As chatbot data reveals customer’s preferences, needs, and goals, banks can fine tune their AI capabilities to create and market solutions.
Banks that fall behind the curve are bound to lose market share, as Nick Ishmael explains on Information Age. Much of the push for AI advancement will result from demographic shifts. As older customers are consistently replaced with the under 35 crowd, old fashioned phone centers and even more old-fashioned face-to-face customer service will quickly fade into obsolescence. The under 35 crowd shows complete ease in interacting with machines and prefers to do so via a mobile device.
This AI loving generation is now maturing. Increasingly, they will be taking out mortgages, starting college savings plans, and controlling more and more investment capital. As a result, banks that keep up with this generation’s thirst for AI powered solutions have the opportunity to become the big banks of tomorrow or at least the highly profitable ones.
Somewhat paradoxically, the up-and-coming generation also wants more personalized customer service interactions. This more personalized service can only be provided en masse via machines, who can record each customer’s minutest preferences and needs. AI can truly create a completely tailored experience for each customer, albeit not one involving human contact.
In the new world, AI will make banking a much more personalized experience. It will also make customer service interaction convenient and available on demand. These benefits can achieve customer loyalty. With the ease of switching banks in the digital world, customer loyalty will be more important than ever.