Adopting AI in banking: the top 5 customer applications

Now that we’ve discussed the top 5 business applications of banking AI, we’re ready to move on to the customer-facing side of things. This is one area where banks are currently reluctant to be the first to leverage this groundbreaking new tech, but remember that you also don’t want to be the last. Check out our top 5 list below to start planning your bank’s AI journey.

Like last time, keep in mind that your bank’s ability to adopt any of these capabilities will depend on a host of factors, including regulatory compliance, market availability, and resource allocation. So use these ideas as a starting place, rather than a checklist of things you must adopt at your bank.

Fraud prevention is important for your bank, but it’s also an extremely valuable service to provide to your customers. These days, fraud actors can cause a ton of trouble in a short space of time, making quick, decisive action more important than ever. And thanks to advanced machine learning models, you’ll be able to flag anomalies — often before the customer is aware — allowing you to alert them in real time and help them take appropriate action to secure their accounts.

People may know that they’re just another customer to their bank, but that doesn’t mean they want to feel like it. Personalized financial advice goes a long way towards assuring them that your bank cares about them, and AI is a fantastic tool in this regard. By analyzing transactional data, your bank will be able to leverage algorithms to suggest personalized actions like budgeting, investment opportunities, or credit optimization. Just think of the possibilities for recommendations based on spending habits, savings goals, and life circumstances. That will help your customers make better, more informed financial decisions, and all with minimal work on the part of your employees.

Nobody likes to wait for support, particularly in a tough situation. With the power of natural language processing (NLP), you’ll be able to create chatbots that can understand and respond to customer enquiries 24 hours a day, 7 days a week, resolving issues without forcing customers to hang on the line. On top of that, virtual assistants will be able to provide instant responses to common queries like balance checks, transaction history, or payment issues, leading to faster resolutions and more accessible banking services. And let’s not forget the value of augmenting your agents with contextual advice, because there will always be customers who want to speak to an actual human, and AI can make them even more effective in their day-to-day job.

If you’re looking for ways to up- and cross-sell to your customers, AI is the tool you’ve been waiting for. It will help you analyze customer spending patterns and suggest — or even automatically move — funds to savings or investment accounts in real time, based on customer-defined goals and income. That will take the risk and guesswork out of wealth-building and help your customers reach their financial objectives more easily. And if banking is easier and more intuitive, they’re sure to become more comfortable using additional products and services. It’s a win-win kind of situation.

This final one is more general, but that’s just because there’s a ton of possibilities out there, if you’re able to successfully leverage AI at your bank. Advanced algorithms will help you streamline digital interfaces, offer predictive search and navigation, even use biometric data for more secure log-ins — making banking more user-friendly and secure. Just imagine voice-activated banking, combined with biometric authentication and faster payment processing. That’s sure to give your customers the “wow” factor they’re looking for in a crowded market.

Now that you’re (hopefully) convinced of the benefits of adopting AI, let’s move on to a few key tips for actually doing so in a responsible, risk-free manner. Check out the interview with Chris Shayan, Backbase’s Head of AI, formerly CTO of TechComBank, for 4 insights that will make adoption a little bit easier.

For more information, check out our Banking Reinvented podcast, where Backbase Founder/CEO Jouk Pleiter dissects similar topics alongside Tim Rutten, EVP/CMO, and other digital leaders. Stay tuned as they chat about everything from progressive modernization to decomposing your bank’s complexity.