How Does AI-Driven Personalization Change The Banking Industry?

Today, almost any conversation about digitalization begins with a mention of the restructuring of business processes associated with the COVID-19 pandemic. Of course, the digitalization of the banking sector started much earlier. But it was the global lockdown that accelerated the transition of most of our routine tasks to online. Many leading banks have already migrated their services from a brick-and-mortar bank office to the virtual space, and advanced tools such as AI are helping them reap significant benefits from this.

Based on the research of a software development service provider, we will try to find out how the COVID-19 pandemic has affected the introduction of AI technologies for the personalization of services in the banking sector. We’ll also define how advanced technology can help banks increase the loyalty of their existing customers and attract new ones.

Personalization in Digital Banking

Personalization and the active introduction of digital technologies are the main trends in the banking industry. Providing an individual customer experience, as is known, remains the main goal for many companies. Personalization helps to identify the essential needs of each client and satisfy them.

How does it work? With personalization, it is easier for banks to assess the individual circumstances of a particular client, the peculiarities of their financial behavior, and, based on this, prepare a personalized offer, develop appropriate advertising, or more accurately assess risks.

Banks use personalization to find and meet the needs of every demographic group: zoomers, millennials, or boomers. For example, boomers are more concerned about the security of their finances and the transparency of banking transactions when using banking apps, according to reports. Personalization tools take this data into account and offer solutions based on their needs.

What’s more, personalization is becoming a crucial mechanism in banking not only in terms of customer satisfaction but also in terms of economic benefits. According to a McKinsey report, banking institutions can generate $1 trillion in annual profits using AI.

To make a long story short, in the conditions of universal digitalization, AI-driven personalization will become not just an added advantage but a necessity for businesses developing in the banking industry.

How Can AI Improve Customer Service?

There are many ways of leveraging AI in banking. For example, the user can receive a personalized offering and even get in the electronic queue while being near the bank branch using a mobile application. When the user enters the bank, he or she is quickly provided with service and profound information on the offering.

Using a mobile application integrated with the bank, the user can quickly create an account and use all the necessary services. Personalization-based features help the bank promptly analyze customer behavior and offer more personalized services. They also improve customer experience and motivate them to request the bank again.

Market players such as Ally, Royal Bank of Canada, DBS are already using technology to improve the quality of service and increase customer loyalty. DBS Bank, for example, offers its customers a mobile app that contains over 100 automated personalized insights generated by their AI-driven predictive analytics system.

Royal Bank of Canada uses a set of personalized NOMI features. It allows receiving information on account activity to the bank’s clients, sending notifications about necessary financial activity, and automatically transferring funds to the required savings accounts.

Personalization Solutions for Banks Powered by AI

Business Intelligence

AI improves the functionality of BI apps and may be leveraged by banks that deal with large amounts of data. The feature provides the opportunity to fragment large volumes of data into small valuable insights that are easier to perceive. This helps banks quickly identify problems and make the right decisions.

Mobile Apps

AI-powered mobile banking apps today are one of the best solutions to improve customer experience. Ordinary mobile applications are not a surprise today since almost every bank has its own mobile banking. However, to stand out from the competition, it is crucial to integrate your application with innovative tools and functionality.

Predictive Analytics

Such market advantages such as advanced predictive analytics and forecasting are now possible thanks to AI and machine learning. The data obtained can be used for precise decision-making. It is critical in the competitive environment.

Data Science

Thanks to AI and machine learning technologies, banks can fully benefit from data science, which provides comprehensive data that helps to get the most relevant and accurate information on any issue. To do this, banks only need to have reliable sources of data.


Banks today are striving to develop chatbots that can act as personal, automated financial assistants. Many of them can replace workers. Chatbots allow users to manage their requests more quickly and effectively. Moreover, your company can use chatbots to collect data about user behaviors. It enables you to predict consumer actions and give more personalized offers and services.

As you can see, there are many ways to apply AI to the banking sector, and one thing is obvious: AI is an indispensable part of a digital revolution. If you want to stay ahead of it, it’s time to enhance your digital solutions with new technologies.

A reliable tech partner Emerline is ready to accompany your company along the entire path of digital transformation. Its experts are ready to carefully explore the needs of your business and offer the most optimal solutions that will address all industry-specific issues. In case of any questions or doubts, book a free consultation.