Intelligence in digital banking: 3 things you should know

Frank Hamilton

Editor and writing expert 

 


The world of banking is very competitive so companies are always looking for effective ways to optimize costs and to increase their sales. Thanks to such technologies as artificial intelligence (AI) and cloud, modern banks can create a completely new type of customer experience, also known as intelligent banking.

Digital banking is nothing new, but its role changes as more and more banks make digital banking their top priority. Businesses explore new ways of improvement and increase their investments in technology. For instance, Santander decided to invest over €20 billion in digital technologies to minimize costs and to boost sales. Lloyds Banking Group also invested £3 billion in its digital transformation program.

The reason why banks are willing to invest in AI and other cutting-edge technologies is that digitalization enables them to increase customer satisfaction, providing a more personalized experience and optimizing transactions. According to research, 80% of customers don’t consider their digital or physical experience personalized. Intelligence in digital banking enables businesses to address this problem and to take their customer service to the next level.

What Digital Banking Intelligence Is

intelligence banking

What Digital Banking Intelligence Is. Source: shutterstock.com

Artificial intelligence in banking is a logical follow-up to delivering omnichannel experiences, and it enables businesses to make data-driven decisions. Intelligence in digital banking consists of several components, including artificial intelligence, machine learning, and adaptive intelligence. These key areas allow banks to improve a variety of processes associated with sales, resource planning, talent management, and customer experience.

It’s important to understand how intelligence impacts the experience center because this area is crucial for all the other aspects of your business. The main advantage of intelligence is that customers are able to get experiences tailored to their preferences and needs. First, machine learning enables applications to understand customers’ intentions. Secondly, customers get an opportunity to use self-service platforms so they become more independent. Besides, chatbots enable customers to save a lot of time, getting timely help with any issues.

One of the most promising areas of intelligence in digital banking is adaptive intelligence. This term is used when referring to applications that use AI and machine learning in real-time. Such applications are quicker and produce better outcomes for businesses. In addition, they are scalable. These apps are more than just sales and marketing automation solutions — these are self-learning systems that often need no help from humans.

Now let’s take a look at the three most important aspects of intelligence banking.

3 Aspects of Intelligent Banking

  • Intelligent resources planning

Banks are able to transform their office routine by adopting the data-driven approach. The modern pace of work requires banks to choose the most efficient practices when it comes to such daily activities as accounting, project management, and risk avoidance.

For example, cloud-based resource planning solutions enable businesses to automate a variety of tasks and to use insights from real-time data to improve their performance. Not only can they efficiently optimize costs, but they can also use a seamless user experience to foster collaboration across different areas.

  • Intelligent experience centers

Customers can get a more personalized experience across channels. For instance, their experience may include personal interactions through contact centers and self-service interactions. Traditional contact centers are no longer able to satisfy customers’ demands so banks transform contact centers into full-fledged experience centers.

intelligence banking

3 Aspects of Intelligent Banking. Source shutterstock.com

AI in banking can empower human agents and ensure the right environment for self-service. Machine learning enables businesses to not only quickly determine their customers’ intent and context but also to find the best channel for every conversation, using digital assistants or providing customers with the necessary help from human agents.

There are also many AI-driven solutions that give banks intelligent interfaces for real-time communications, whether it be voice or video calls. The main advantage of such solutions is their flexibility, which positively impacts customer service and enables businesses to focus on sales.

  • Intelligent sales

External and internal data is crucial for increasing traffic and boosting digital conversions. Hyper-personalized communication with prospects across different channels and platforms enables banks to increase their return on investment and to adopt a data-driven approach to sales.

AI-based customer experience applications help banks adjust both their marketing and customer interactions to get high-quality leads and to boost their sales. Data management platforms and other tools help banks manage their audiences based on engagement and to simplify the overall customer journey. They also create countless opportunities for personalized communications in apps and on websites, using data to tailor each customers’ experience to their preferences.

Final Thoughts

As banks are looking for new ways to reduce costs and to boost their digital sales, artificial intelligence, and machine learning turn out to be very effective technologies that help companies come up with a more personalized approach. Technology becomes more and more important because of the need for increased profitability. If banks fail to adopt a data-driven approach, they risk to slow down their growth and to lag behind their tech-savvy competitors.


Frank Hamilton has been working as an editor at review service Online Writers Rating. He is a professional writing expert in such topics as blogging, digital marketing and self-education. He also loves traveling and speaks Spanish, French, German and English.


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