With the evolution of digital banking, there are fewer opportunities for face-to-face interactions with customers. Is it therefore becoming harder to drive customer devotion, attracting and retaining loyal customers in this era of digital self-service? Banks are investing huge amounts of capital in digital capabilities such as chatbots, artificial intelligence (AI) and open APIs. According to Goldman Sachs, machine learning and AI will enable £26 billion to £33 billion in annual “cost savings and new revenue opportunities” within the financial sector by 2025. The availability of new technologies such as cloud computing and machine learning algorithms have created the perfect conditions for the expanded use of AI in banking. So much so that the Royal Bank of Canada announced it would explore how to better integrate machine learning, and JPMorgan Chase recently hired a global head of machine learning from Microsoft.
Improving digital experiences
There are many opportunities for AI to recognise customers, offer personalised experiences, services, and build loyalty by offering suggestions based on customer behaviour. AI can use transactional and other data sources to help banks understand customer behaviour to improve their experience, to ultimately encourage them to use their payment cards –ahead of a competitor’s –more frequently.
This article originally appeared in globalbankingandfinance.com. To read the full article, click here.