Traditional banking system need to become AI first. This will allow them to compete with non-banks and technology companies. This is the conclusion of McKinsey’s report “Reimagining consumer engagement for the AI bank of the prospect.
Artificial intelligence in banking
McKinsey experts give several reasons why banks need to adopt AI technology. They are:
- Customer demands are growing. Companies and non-banks are competing with the traditional banking system to propose a better consumer experience. One of the weaknesses of traditional banks, experts inform, is the smooth operation of online customer interaction channels.
- Tech giants and non-banks offer single, intuitive interfaces to access all bank accounts and financial services at once. Customers are getting used to a new, more convenient way to manage their finances.
- Voice interfaces are becoming the new standard of interaction with customers. Experts attribute this trend to the growing popularity of smart speakers – today almost a third of American adults use such devices. In the future, video interfaces may become the same standard.
Becoming “AI first”
McKinsey gives recommendations, how the traditional banking system can become “AI first”. They are:
- Banks need to redefine the customer experience to become part of their everyday lives, improve efficiency, and open up new markets. Banks need to focus on smart customer experience and learn how to seamlessly integrate their services into partner ecosystems. This is what distinguishes an AI bank from traditional players, experts emphasize.
- AI is a tool that will enable the banking system to better understand consumer wants and preferences: by analyzing consumer data in real-time, using the results of the analysis in response to requests, and forming individualized offers for the customer.
- Offerings to consumers may no longer be one-size-fits-all — they must be thoughtful and personalized and go beyond banking services.
- Banks can make customer offerings more personalized by building their own ecosystems or interacting with someone else’s, ultimately by leveraging the data. Banks are now building their ecosystems around online commerce, B2B services, real estate and other areas.
Context
In September, Frank Media polled Russian banks on the use of artificial intelligence technology. The press service of Sberbank reported that the bank already makes 100% of its retail lending decisions using AI, 95% of them are formed without human involvement. With the help of ai development company the banking system is also developing technologies for:
– computer vision,
– language processing,
– speech analytics,
– appliesAI technologies for document recognition.
Tinkoff registered the AI bank trademark to reinforce the concept of a technology company, Tinkoff CEO Oliver Hughes told Vedomosti. The bank has voice assistants, chatbots, callbots and recommendation services. Gazprombank introduced a robotization platform for business processes in 2018. In total, according to Alexei Golubintsev, deputy head of the bank’s Banking Processes Department, more than 20 robots assist employees serve consumers. Rosbank and Home Credit also talked about the use of AI by Frank Media.