AI in Banking: The Tech Journey to Serving a Segment of One

The banking industry is leading the race to adopt artificial intelligence (AI), with the top banks in North America filing 99% of all the AI-related banking patents in 2021 (the most recent full year of filings). AI creates new possibilities for banks to provide a hyper-personalized customer experience, but developing machine learning and deep learning algorithms comes at a huge cost and the rest of the industry is struggling to keep up with their largest competitors. So not only will banks find that competition with the top tier banks is going to get even harder, but the banking industry consistently struggles to retain tech talent – a must-have in the AI race.

The solution lies in better partnerships between banks and fintechs. Banks can partner with third-parties that already have the tech, tools and talent to start implementing AI solutions now, allowing them to remain competitive and offer a better customer experience.

Read: AI in Content Creation: Top 25 AI Tools

So, how can AI help banks in the fight to gain and retain customers?

Improved customer communication

Communication is a cornerstone of a successful banking-customer relationship. AI lets banks create personalized customer communications by analyzing past communication and generating tailored messages for each customer. Whether it’s through emails, notifications or personalized marketing campaigns, this level of customization fosters a stronger connection between the customer and the bank. Generative AI can also offer quicker communication and assistance for simple banking requests, increasing customer satisfaction.

Read: Role of AI in Cybersecurity: Protecting Digital Assets From Cybercrime

Instant insights from data

AI is instrumental in consolidating customer data and drawing insights from it to understand how a bank can help them with significant life-changing events. Customers are looking for banks that provide a better experience for their entire family and advise them through milestones. For example, AI could identify when a customer is spending an unusually high amount on baby products, prompting the bank to send them an educational email on how to save for a child’s college education.

Delivering hyper-personalization through AI

Banks can also explore the use of AI in developing “hyper-personalization.” AI will enable banks to personalize their product and service offerings in real-time, tailoring them to the unique needs of individual customers. By using AI to analyze transaction data, spending habits and more, banks can offer the right product or solution to the right customer at the right time.

Read: AI In Marketing: Why GenAI Should Be in All 2024 Marketing Plans?

For instance, AI can help banks recommend personalized investment options based on an individual’s risk appetite and other factors. This not only enhances customer satisfaction but also increases the chances of customer loyalty.

There’s no doubt that AI is revolutionizing the banking industry. By harnessing the power of AI, banks can elevate their customer experience at every touchpoint. As the technology continues to evolve, banks that can develop the most symbiotic partnerships with technology partners will continue to stay ahead of the competition and delight customers with a world-class experience – even if they’re not a top 5 bank.