As the UK starts its roadmap out of lockdown, we’ve learnt that Artificial Intelligence (AI) will be one of the most significant technological influencers to reshape how the financial services sector will evolve in the near future. As the sector has had to adapt quickly to lockdown it’s become clear that financial services businesses can commercially set themselves apart from their competitors by adopting AI across a number of disciplines.
AI is growing in all sectors and that growth is showing little sign of slowing down. With a global market value worth $30 billion the AI technology sector as a whole is predicted to grow to a staggering $733 billion by 2027.
Here we identify the crucial areas where we find AI will benefit financial services businesses.
AI based credit scoring models provide a more exacting evaluation of data and can consider data that would not seem relevant or even included in a traditional credit scoring model. AI can provide rules that are very complex and in-depth as opposed to traditional credit scoring models that use predefined rules and often end up rejecting borrowers who are credit worthy but don’t fit our predefined perspective.
By rejecting customers on inaccurate data, financial services businesses are damaging long term secure revenue.
During the pandemic the demand for digital services exploded. This demand has caused a rapid acceleration in the technology available to businesses. Customers have become savvy, expecting fast functioning AI services – without even realising it.
The higher quality the level of customer experience your business can offer the more loyal your customer base. It is no surprise that in this fast moving digital world that if you give your customers a bad experience they will turn to your competitors for a better service. AI offers two advantages; a quicker response to customer queries and a fast analysis of data offering a more personalised customer approach.
The pandemic has changed customer behaviours and perceptions evidenced by even the once cynical consumer venturing online for a wide range of services. Their new found confidence has resulted in a familiarisation of both the process and expectation in terms of service. Logic based chat and clickbots supported with AI and Machine Learning offer the perfect solution to support financial service businesses meet the new expectations of these converted consumers.
AI technology can reveal the needs of your customers by analysing the customer insight offered on social media content, chatbot conversation, review websites and then make appropriate recommendations for products and services. This process offers a commercial advantage by reducing your employees time on tasks.
Your customer service can be further boosted by robo-advisers. Non-human or little human intervention can advise on portfolio management and offer personalised product recommendations. AI advisers efficiently collect information such as marital status, income and investments plus customers goals analysis. This information is used to automatically create solutions such as retirement plans and saving accounts dedicated to predicted life events.
Cyber attacks increase year-on-year and during the pandemic hackers became ever more sophisticated. AI can assess irregularities and vulnerabilities and eliminate them fast. It is estimated 95% of breaches are due to human error and manual checks can not work as fast as AI to scan for potential attacks. Ultimately AI is essential for financial service businesses to stay ahead of cyber security breaches and by doing so saving millions of pounds every year.
Process Control and Optimisation (PCO)
The process of PCO helps businesses to remove or greatly reduce repetitive tasks from the workplace. Going forward the most successful financial services businesses for the next decade will successfully adopt PCO. The process enables businesses to work smarter, while efficiently improving productivity and quality.
Adopting AI into your business isn't as futuristic as it sounds, it’s here and in the everyday life from Alexa through to smart email replies. It will streamline your working processes making your business commercially efficient while creating a happy workforce and a satisfied customer base.