The current pace of technological advancements has the most profound impact on enabling how banks transform themselves to respond to competitive threats and the regulatory environment while improving the customer experience.
Intelligent technologies promise to bring great benefits, such as productivity and efficiency gains, enabling innovative new business models and new revenue streams. The following intelligent technologies are instrumental in helping banks respond to the quickly evolving global financial services marketplace.
Artificial Intelligence and Machine Learning
Machine learning and artificial intelligence enable algorithms to “learn” from existing data and achieve the best possible outcomes without being explicitly programmed. Once the algorithm is trained, it can then predict future outcomes based on new data.
Businesses can leverage these capabilities to eliminate repetitive manual tasks, such as service ticket management, automatically determining classifications, routing, and responses. They can also be used to anticipate customer behavior – such as account closures and credit card cancellations – with instant insights from transactional data and digital interaction points.
The integration of advanced analytics capabilities – including real-time situational awareness of negative customer experiences – into applications enables business users to analyze data on the fly and drives better decision-making. Empowered users can get immediate visibility into their operations and customer feedback. They can simulate the impact of business decisions, achieving better risk management and better outcomes. Predictive analytics of structured and unstructured data provides 360-degree customer insight, enabling banks to anticipate the behavior of its customers, respond to their needs, predict the next best step or product offer, and rapidly engage customers in real time.
A relatively recent breakthrough technology, blockchain is revolutionizing the movement and storage of value by creating a chain of unaltered transactional data. The blockchain model of trust, through massively distributed digital consensus, could reshape supply chains and commerce across the entire digital economy, for example, digitalizing the bill-of-lading document as part of the international ocean shipping process.
Advances in machine learning are enabling algorithms to become highly accurate in natural-language understanding and in image and voice recognition, especially useful in after-service and call center activities. Voice interfaces will be the go-to for the next generation of applications, allowing for greater simplicity, mobility, and efficiency while increasing worker productivity and reducing the need for training.
Customer experience bots for services and commerce provide a humanized way for the customer to interact with their bank. This results in higher customer satisfaction and better customer experiences due to ease of consumption by using machine learning techniques for natural-language processing.
Robotic Process Automation
Robotic process automation streamlines repetitive, rule-based processes and tasks in an enterprise and reduces cost through the use of software robots by replicating specific tasks or keystrokes.
Automation frees up employees for engaging in higher-value tasks, resulting in increased employee satisfaction.
How do you achieve these strategic priorities?
Start with reimagining your business together with your customers. Then build a path for even more optimization and intelligent automation to simplify your business and free up resources to invest in even more digital transformation programs and find new business models and revenue streams.
Margin pressure and regulatory complexities are a constant challenge for banks. Legacy systems, mergers and acquisitions, along with changes in technologies, business models, and rising customer expectations require constant adaptation.
Banks must be able to respond to increasing customer demands yet still comply with all regulations and reporting requirements.