Banks have a competitive advantage when it comes to data because of the quantity and quality of the data they hold. Information like customer’s spending habits, mediums of investment, response to marketing campaigns, etc. make banks the custodians of a wealth of data. An understanding of what data sources to use can drive improved approaches to decision-making. Traditional banks need to respond by effectively integrating all of their services to become a modern 360° financial partner for their customers. The bank’s ability to predict customer needs, offer personalized financial products and services, mitigate risks, and comply with ever-expanding regulations will be key to its success. This cohesive strategy implements modern data architecture, which integrates large volumes of data from many sources.
Being digital bank does not happen overnight and does not happen by implementing one innovative solution. In order for a bank to be truly digital and ready for the future challenges, bank needs to have digital strategy with defined activities. Data-driven, high-quality experiences and insights to customers are the key for a bank to establish a relationship with customers and become their trusted advisor.
Artificial Intelligence (AI) is going to be of a great importance in banking and will enable banks to improve customer experiences. Through AI, banks can increase labor productivity and obtain competitive advantages. AI tools like ChatBots and Virtual Assistants already have wide application in improving customer experience, while Robotic Process Automation (RPA) has an important role in cost-cutting and improving efficiency. Main directions that banking needs are heading include:
- Real time decisioning
- Advanced predictive analytics
- Seamless customer experience through all channels
A bank that manages to react to customer needs in real time and offer the right products/services on the preferred channel will become the customer’s first choice when it comes to banking, and thus emerge as the market leader. Those that fail to embrace Artificial Intelligence (AI) and the benefits that come from unlocking data, on the other hand, risk being left behind by those that do. By observing and listening to customer needs, banks can maximize their retention rate, attract new customers, and accelerate into the digital future.