Banks are more likely to benefit from generative AI (GenAI) than any other industry, according to analysis from Accenture, with a potential productivity boost of up to 30%. This is no surprise when you consider that to take advantage of AI, organizations require stacks of good data – and for the banking industry, data is plentiful.
With physical branches closing almost daily, the use of AI to enhance our digital banking experience is on the rise – from improving the customer experience through more efficient service, personalized offerings and greater security.
But how are conversational AI (CAI) and GenAI really shaking up the banking industry and what can consumers expect from their experience in the future?
VP of Europe for Kore.ai.
Consumers are already familiar with CAI and GenAI
Advancements in CAI and GenAI bring countless potential use cases and applications for the banking sector to stay ahead and they have the potential to touch every process and role within an organization and enable it to constantly reinvent. Put simply, while GenAI produces original content when prompted, CAI specializes in holding authentic two-way human-like interactions. Together the two technologies complement each other to provide an enhanced experience.
Kore.ai’s latest CX Benchmark report highlights that UK consumers are comfortable with using AI in their banking interactions and would be happy having more AI Automated Assistants supporting them. For example, 100% of respondents said they’d be interested in having an Automated Assistant to help them with bill payments or ATM information, with two thirds (67%) saying they would want support with transferring money, checking balances, setting budget and spending goals and checking their credit score.
It's therefore no surprise that Gartner’s 2023 Financial Services Research Panel Survey found that 61% of banking executives say their firm is increasing investments in AI or plan to do so in the next 12 months.
But with CAI and GenAI progressing at a fast pace, banking institutions need to ensure they have the right infrastructure, fully understand the potential risks and value that new AI-enabled solutions can bring and have guardrails in place to implement AI responsibly.
So where do banks go from here? And where are they already seeing success?
GenAI’s immense potential
With GenAI’s immense potential to increase revenue and efficiency, and manage risk, here are just some example use cases for the finance industry:
- Frontline staff are better equipped to offer personalized context-driven conversations with customers
- Context-based product recommendations aligned to financial needs are delivered in real-time
- Insights and actionable summaries are delivered, which speed up accurate decision making
- Improved credit risk assessment and fraud detection
- Outbound promotional and marketing campaigns can be hyper personalized
- Contact center agents can receive real-time suggestions to guide them through calls to enhance the customer experience
For financial institutions to seize this opportunity and deliver better customer and employee experiences, they need to invest in a CAI platform, which is one of the biggest use cases of GenAI.
Together, GenAI and CAI complement each other for better business outcomes. CAI harnesses the capabilities of AI and natural language processing (NLP) to enable machines to engage in human-like conversations.
CAI is already transforming customer, customer service agents and employee business interactions and experiences through mostly dialogue based conversations. And while GenAI accelerates interactions (from better intent understanding to data analysis and synthesizing and content creation), CAI helps to keep GenAI within its limits – ensuring guardrails are in place so interactions can take place responsibly.
Transforming customer service with Automated Assistants
Automated Assistants for banking can automate repetitive questions and access customer information and knowledge bases, allowing them to deliver 24/7 contextual support for rapid problem resolution on any channel and in any language customers choose. Financial institutions can also add personalized service offerings tailored to an individual's needs such as support with budgeting, answer complex queries, or identify cross-selling and upselling opportunities.
This provides customers with a contextual banking experience, driving engagement in real-time, such as offering information on their credit score, including how to improve it, or offering upgrades to their account for being a long-term customer, for example.
Looking to the future of finance powered by AI
As the adoption of AI technologies in the banking sector grows, the potential value it can deliver to the global banking industry is estimated to be up to $1 trillion annually, according to McKinsey. AI-first institutions that prioritize and adopt applications to the foundation for their operations, are expected to thrive and lead the industry.
AI-driven personalisation and omnichannel experiences have become crucial for banks to remain competitive. Customers today expect tailored services and seamless interactions across various channels, and CAI and GenAI are well-positioned to deliver precisely that. Rapid innovation cycles driven by GenAI will enable banks to stay ahead of the curve and effectively cater to evolving customer demands.
Ultimately, the future of banking is undoubtedly intertwined with the capabilities of GenAI, and for those who adapt, the possibilities for progress and benefits are endless.
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