Banks need to focus on the concrete improvements that AI can offer to their business today
Artificial intelligence (AI) was a major theme throughout the first day of the Money 20/20, the world’s largest fintech event which is taking place in Las Vegas on 21-24 October. As a spokesperson for GlobalData noted, the potential of the technology is significant.
AI is shaping a new era of personalization, giving rise to new services and new functionality for customers. The concept of personal financial management (PFM), which has struggled to take off, is being replaced by ‘personal financial coaching’ or even ‘life coaching,’ given the intertwined nature of one’s personal and financial affairs.
Banks able to leverage AI to provide a truly personalized banking experience and tailored recommendations will benefit from goodwill and trust. However, 41% of banking providers globally do not offer their clients personalized recommendations on how to manage their finances more efficiently as part of their PFM tools.
As the push to implement stronger authentication procedures rises, customers continue to expect a frictionless but secure banking experience. According to GlobalData’s latest research, 72% of consumers globally are ‘very’ or ‘quite’ concerned about identity theft. Yet, when asked what is more important to them when conducting a banking transaction – security or convenience – 72% of the Money 20/20 audience voted for the latter.
AI – in tandem with biometrics – addresses this security/convenience conundrum. Biometrics are moving beyond mere fingerprints towards multi-factor applications, such as a combination of face, voice, and behavioral biometrics, all of which can be analyzed by a specialist AI tool to offer additional security without adding unnecessary inconvenience. The latter will attract particular attention as the focus in fraud risk continues to rise; simply capturing unique, measurable identifying patterns in human activities without requiring any onerous effort by users.
SEE ALSO: TOP-5 robots working in banks