We’re half way through. What the banking industry looks like after the first half of 2018 – it’s all about disruption, deregulation, and customer service.
The banking industry has undergone an incredible shift in the last 10 to 15 years. From the first mobile payment to Starbucks made in 2011 to the development of online banking options, the financial industry is changing rapidly. In 2013, 80 percent of consumer spending in the country was already being done in a cashless form. Now, we’re moving heavily into even more advanced technology.
Breaking Banks podcast, May 10, 2018: "We've integrated directly with [Mercantile's] existing PFM provider, which is MX. They have some great APIs and some data enrichment and cleansing that they go through. Based on my experience, they're pretty world-class in terms of enriching and properly categorizing these transactions. They've been really easy to work with. We're big fans of what they're creating there at MX. We're basically taking that data from MX and building the ability to have conversations about that data."
Anyone familiar with transaction feeds knows that the raw data isn’t pretty. It's often indecipherable and confusing for users. With MX, you can offer transaction data that has been cleansed, categorized, and classified.
Note: This is the first in the MX series of videos "It starts with clean data."
What value does artificial intelligence bring to the customer? In the average bank or credit union, day to day transactions seem simplistic and standard. Why invest in AI if it will not benefit the customer? It does, actually, in numerous ways.
Many financial institutions view the investment in any type of augmented reality, artificial intelligence, or data analytics as one to benefit the company itself. And, it does this. Reports indicate that the adoption of data analysis and insight alone is a top reason banks are turning to AI, along with increased productivity of staff and the cost benefits it provides.
However, there are numerous applications in which the customer – whether a loan borrower or a checking account user – benefits from this adoption as well.
It Improves Communications
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-intense workforce. But, this not only benefits the business itself but also the customer.
Customers want information fast and without delays. They want to ask a question and get a specific answer in no time. Just the thought of having to wait 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.
In this manner, AI is saving financial institutions money while also improving customer service. That’s worthy of investment.
It Creates Memorable Results
AI can do more than just cut out the time spent by consumers on the phone. It can also provide incredible opportunities to reduce frustrations along the way. 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 a 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.
Safeguard Their Information
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 recent report from Business Insider Intelligence, we learn AI is an important part of the payments process – in providing fraud protection and identity protection.
To see 16-pages of data coupled with case studies about how fintech can benefit your institution, read the MX Business Case.
Brandon Dewitt, CTO at MX, recently presented a webinar as part of the MX Data Webinar series. You can download the deck, and watch the webinar below. In the webinar Dewitt outlines what it takes to launch from a place of "vision rather than delusion" -- resulting in successful data-oriented projects.
Data continues to be one of the most valuable resources financial institutions of all types have available to them. And, yet, it is the most underused and, sometimes, undervalued asset. This is perhaps the biggest mistake financial institutions are making right now. By not tapping into what data can provide, credit unions, fintech companies, and traditional banks are missing key opportunities to improve customer relations and boost bottom line figures.