Finextra, reporting on a survey of 200 large banks by research firm TABB Group, highlights that two-thirds already use AI and machine learning. However, the survey of global tier one and tier two banks shows that most are unaware of how to use it properly. It finds that 67% of banks have deployed AI, but 83% are unaware of how to use it to solve business issues.
It reveals that 87% of respondents think it would useful if an AI engine could identify relevant events that result in “engaging with a client and closing a deal”. And bankers “recognize that AI driven insights will have a tremendous impact when it comes to anticipating market events to stay ahead of the competition".
Miguel Rodriguez, VP, customer success, Squirro – which commissioned the research – is quoted: “The potential of augmented intelligence to support relationship managers with data driven lead sourcing and next best action recommendations is starting to gain real momentum. Investment banking as an example is highly competitive and anything that provides an advantage will be seized upon, although investment banks could use AI even more effectively by deploying it to enhance specific business processes.”
Finextra article
Metro Bank utilising technologyMetro Bank is also planning to use AI, reports Karl Flinders for
Computer Weekly. It will be launching a service known as Insights soon, which will “use predictive analytics and AI to monitor transaction data and patterns in real time to identify trends in customers’ spending habits”. This data will be used to provide “personalised prompts” to help customers keep on top of their finances.
These prompts might include “information about subscriptions, alerts to unusual spending, helping customers avoid additional fees, and alerting them to large or duplicate transactions. The service will also provide spending analysis”.
Computer Weekly article
AI in APACAnother survey points to the rise of AI in financial services internationally, including the Asia-Pacific (APAC) region, reports
Enterprise Innovation. It indicates that AI will play a more central role in improving collections systems in banks and financial institutions within the next two years.
The article explains that “AI-powered analytics aim to improve automation in collections in many areas, from optimising contact strategy settings to ensuring human agents make sophisticated decisions when restructuring debts, or even calculating provision rates”.
The survey also reveals that two-thirds of banks using automated collections to reach customers have had success in faster bill payments. Also, 81% believe this system leads to higher customer satisfaction. A big reason for the satisfaction, according to the survey, is due to a client avoiding embarrassment of dealing with a person on debt matters.
AI is here, and it’s here to stay. But whether financial services can use it efficiently will be proved with time. Perhaps further education on this issue could help the entire sector?
Enterprise Innovation article