What does AI mean for the banking industry?
A year ago, the World Economic Forum reported that 76% of senior banking leaders said AI would be critical to their institution’s ability to differentiate in the market. The implications of what greater adoption of AI means for banking have sometimes sounded apocalyptic. Who can forget how the ex-head of Deutsche Bank predicted robots could replace half of the bank’s staff.
That statement was made back in 2017 but it has not been AI that’s shaken up Deutsche and other banks. Mobility and digital banking have had a greater effect on reshaping banking business models. Indeed, it is beginning to look like the impact of AI on banking will be much more subtle and important than what some feared.
As UK banks like Natwest run AI development units, the focus is on how AI can improve the quality of customer service through making the processes as frictionless as possible.
The types of AI-powered applications that are being rolled out are about software robots offering customer recommendations based on payment history, answering common customer queries via chatbots and seamlessly handing over to a human colleague when necessary.
As banks look to scale up AI, a challenge is how they can ensure the AI works with legacy solutions and access the wealth of customer data available. Certainly, in deploying AI more extensively, it is so important that banks don’t create another technology silo.
This need to integrate AI lies in how Auriga has introduced an AI module in its WinWebServer (WWS) omnichannel banking software suite. WWS AI seamlessly integrates with legacy solutions to enable banks to leverage the existing data available to create an enhanced customer experience, speed up strategic decisions, and improve investments.
Ironically, AI should play a crucial role in helping older customers who are not as tech-savvy to use new self-service banking devices. AI can learn a customer’s individual needs and autonomously personalise their banking service transactions quickly and easily via a smooth digital experience
Another advantage of AI for banks is how it can provide augmented intelligence to support the running of the traditional bank branch. For example, the WWS AI module uses algorithms that optimise cash flow in each of the bank’s branches, cashpoints, and vaults so that cash is available when it’s truly needed.
To learn more about AI and banking, please visit https://www.aurigaspa.com/en/banking/needs/artificial-intelligence-banking/
By Niccolò Garzelli, Senior Vice President of Sales, Auriga
This article is also featured in the summer November 2019 issue of the Banking Technology magazine.
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