Artificial intelligence used to be something unimaginable, a futuristic science fiction trope. But in 2021, it’s not a matter of when the future will get here. The future is already here. Artificial intelligence is not something from the movies, but a practical, helpful tool that businesses can integrate into existing processes. Think of voices such us Apple’s Siri and Amazon’s Alexa, or chat boxes that pop up on websites asking how they can help. These are all well recognized examples of AI being used in a mainstream environment to answer questions, provide a service, or enhance customer support.
Financial institutions aren’t excluded from the shift to integrate artificial intelligence tools. These tools can help institutions thrive on connecting with their consumers by sharing and informing on products and services that meet their financial needs.
So, What is Artificial Intelligence?
Artificial intelligence (AI) is the development and deployment of systems that are able to perform human tasks, such as decision-making, predicting outcomes, assessing efficiencies, and automating adaptions to complete a specified task. AI includes a spectrum of tools that range from basic automation to machine learning and cognitive processing. Gathered data helps pinpoint when, where, and how these tools can be the most effective and impactful.
AI is being used widely across industries to help tackle challenges by providing personalized, adaptable, data-driven solutions.
This can include:
- Communication with consumers
- Customer support
- Personalization in marketing messaging
- Operation automation
- Predictability and analytics
- Fraud monitoring and prevention
Artificial intelligence can be leveraged across various channels, including voice, chat, text, or email. AI adapts to different situations, can solve problems, and make decisions with minimal human intervention.
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10 Benefits for AI Implementation
There’s a lot of innovation happening as financial institutions respond to the pressure to best leverage their data. There are ongoing challenges in understanding data capabilities, navigating increased competition, and increased volume of remote requests (in part as an effect of the COVID-19 pandemic and resulting shift to virtual interactions).
Artificial intelligence is one way to reduce human resource costs, find opportunities to increase revenue, and leverage data to better understand the consumer. As consumers become accustomed to digital access and personalized recommendation, it’s important financial institutions are prepared to win business from the right consumer at the right time. Tools with artificial intelligence can help you do that.
Artificial intelligence tangibly helps your institution:
- Build Customer Journeys: AI tools can help direct consumers to a path that makes sense for them. By leveraging key data metrics these journeys can guide towards different loan options, ancillary products, or instant access to help across digital channels. These journeys can be planned, strategic, personalized, and consistent in messaging.
- Predict Consumer Needs: Services like scheduling an appointment, debt collection reminders, cross selling products and services, process transactions, or provide technical/customer support are all ways to anticipate and respond to consumer needs. AI tools can more immediately act on consumer behavior trends at an individual level and predict the best way to follow-up.
- Meet Demand for Convenient Service: Digital accessibility and an easy user experience are increasingly demanded by consumers. An expectation for convenient, swift, personal service can be met with AI implementation. This decreases frustration with long wait times or delays in gaining answers or needed information.
- Investment in Digital Strategy: Simply being online often is not enough, with an expectation for personalized service growing. A personal touch can be achieved with user data. This could include automating loan and product info, or leveraging cross-promotion opportunities to generate more applications and sales.
- Enable 24/7 Access: AI tools can help customers find the information they’re looking for at any time. This can include access that is ADA compliant, virtual call center assistance, and other self-service options.
- Foster Busines Growth Initiatives: Data can offer an impactful way to promote business growth. By implementing AI additional opportunities can be uncovered to convert loan applications, sell ancillary products or services, or encourage certain consumer behaviors that match growth initiatives.
- Increase Operational Efficiencies: AI assists by extracting necessary information to help speed up the overall process timeline. This can include data validation to help prevent fraud, or enhance certain operations efficiencies for loan onboarding, servicing, claims, and collections services.
- Help Lower Risk: Many institutions reported an increase in fraud activity during the COVID-19 pandemic. With a quicker processing time AI tools can help find and prevent potential errors or fraud attempts.
- Enhance Call Center Efficiencies: During the pandemic, many institutions saw increased call volume that led to long wait times and a lot of consumer frustration. With AI, calls and chats can be escalated as needed, and the tools can help enhance call center efficiencies by increasing call center volume and limit wait times.
- Adapt Employee Training and Development: Hiring and training takes a lot of institutional time and resource. AI can help share policies and procedures and streamline the training process and increase productivity and engagement of both new and veteran employees.
There are countless benefits and integration opportunities for AI implementation. With increased automation of consumer interactions, financial institutions can help reduce operational costs, refocus on growth opportunities, and ultimately generate greater revenue.
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