Why the Basics Matter for Financial Services
October 12, 2023 | 1 min read
Many financial institutions view investing in artificial intelligence or data analytics as a benefit to the company and not the customer. The adoption of data analysis and insight by organizations is indeed a top reason banks are turning to AI because it leads to increased productivity of staff and cost benefits. But what value does artificial intelligence bring to the customer?
We outline some of the ways in which the customer – whether a loan borrower or a checking account user – also benefits from the adoption of artificial intelligence.
From an employee focus, the investment in AI can reduce the amount of time your team spends on the phone handling basic customer calls. Imagine the cost savings when you invest in chatbots, for example, to answer questions instead of using your labor-intensive workforce. This not only benefits the business itself but also the customer.
Customers want information fast and without delays. They want to ask a specific question and get the right answer in no time. Just the thought of waiting in line for a customer service representative to answer the phone – in any industry – is one key reason consumers fail to reach out to their bank. AI ensures they get the information they need without delay, saving financial institutions money while also improving customer service.
AI provides incredible opportunities to reduce customer frustrations. Let’s say a customer is thinking about buying a home. He or she is not ready to speak to a loan officer and does not want to provide his or her social security number just yet. They just want to know if it is even possible to obtain a loan before they set their sights on the home of their dreams.
They turn to the internet. They may even turn to their bank’s website. They go from page to page looking for information. They become frustrated. While these information-packed pages provide good stepping stones, it is not personal to them. It does not provide a very specific yes-or-no answer to the customer. The customer closes the page and moves on, without much information.
What if your website could provide more customized solutions? Using the data obtained, AI applications go to work for that person. They gather information about what the customer is looking for, perhaps even present some offers, or at the very least present an opportunity for the consumer to learn more through a customized, no-risk, no-credit-check offer.
The difference here is the personal engagement. When AI is applied, a basic web search completed by a customer turns into an effective solution. And, this creates a memorable event in the mind of that customer. Even if they cannot apply for a loan right now, they have already created an important relationship with their bank for this loan in the future.
Consumers know the risks of using the internet and connected landscape for their finances. Yet, there is increasing interest in doing just that. But, they want to partner with a bank capable of helping them avoid the worst outcome. In a report from Business Insider Intelligence, we learn AI is an important part of the payments process – in providing fraud protection and identity protection.
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