How Artificial Intelligence Helps Banks Offer Personalized Banking Experience?
Digital banking has grown significantly in recent times and heavily reduced person-to-person interactions. Non-humans are replacing humans in banking sectors, in providing all level services. According to Goldman Sachs Group Inc., by 2025, machine learning and artificial intelligence will provide $34 billion to $43 billion annually as cost savings and revenue opportunities. Daniel Pinto, chief executive of the corporate and investment bank at JP Morgan, said in a December memo that The bank invested in big data applications and robotics. The bank is set to provide an update on those investments in the coming weeks. Also, recently, JP Morgan Chase rolled in a global head of machine learning from Microsoft.Be it structured or unstructured data, data is impacting businesses processes heavily. New technologies like cloud computing, machine learning, artificial intelligence, big data and business intelligence are emerging and these have created ideal conditions for using Artificial intelligence in Banking. Subsequently, there is a significant increase in the number of machine learning development company USA and artificial intelligence development company USA.
But, there are few challenges that banks are facing in regards to building AI solutions like the unavailability of trained data scientists.
On the other hand, businesses are striving to deliver personalized customer experience since it is necessary for building loyalty among users. According to researches, around two-third of the users expect rewards and recognition for their loyalty. It has been seen that if a user is loyal, there would be 70% more chance that they purchase more services from the bank and recommend the bank to their family and friends. And mostly, loyal customers don’t switch the service provider.
Enhance digital experience among users
Artificial intelligence can clearly help banks by understanding the customers’ behaviour and providing them supreme digital experience. This can help in building customer loyalty.
Through the existing digital systems, sometimes users may not be able to redeem their loyalty currency points, which puts pressure on bank’s balance sheet. For solving this problem, Artificial intelligence could be used, which suggests customers when to spend their points. AI can also help to provide timely rewards based on the user location. For example, if a user is booking a flight through their bank card, then loyalty system could provide an offer for lounge facility during the halt at the airport.So, AI can help enhance customer experience and engagement by making it is easier for the customers to claim their loyalty points. Engaged customers are more likely to purchase again and generate additional revenue for the organization. Artificially intelligent chatbots could also be programed to handle high level calls. And human resources could be used for better purposes like giving financial advice to customers and collecting additional data from users to provide them better products and services in the future.
· Enhanced personal interaction
Usually customers prefer to access services via digital medium. But sometimes, they want to have face to face interaction with their respective banks. As per some surveys, 21 percent people prefer to contact banks via phones, 29 percent through website, 24 percent via app and more than a quarter (26) percent likes to visit bank.
Thus, Artificial intelligence can be used in banking sector to help them serve their customers efficiently by providing them better access to the related information. Moreover, this year, U.S. Bank announced the implementation of artificial intelligence solutions. By implementing AI, the bank could analyze how it answers queries of the customers regarding products, service or loyalty program.
Rather than consulting experts in order to get guidance, Machine learning is used to ensure pre-defined answers for simpler queries. Advisors can easily get the proper info of all the micro details of Bank’s offerings. So they could easily answer customers’ query and within no time. This will also help build loyalty among clients.
In this competitive era, the financial organisations need to understand their customers. Once the customers are understood, they can be provided with relevant offers or loyalty points in order to keep them engaged and ultimately retaining them. So, by making use of effective AI, banks could encourage their clients by providing relevant offers on products and services. Also, using AI, banks could understand their customers’ needs better and make them devoted to a brand.
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