Smart banks are the future
In order to remain relevant in the AI-driven digital age, banks need to keep up with the times and offer customers solutions that are technologically advanced, tailor-made and, above all, digital first.
Banking is facing an important challenge. As technology takes over our lives, users' habits are becoming increasingly digital and the whole development has been accelerated further in a pandemic era. The time for action is now, and banks must become the banks of the future, using artificial intelligence to optimise their systems, services and customer experience. In recent years, there has been a trend towards digital banks (Revolut, N26, Chime, etc.), which have already taken a bite out of the market share of traditional banks with their futuristic user experience and innovative services. An industry that has for many years remained within its own framework is undergoing major shifts that are creating tremendous opportunities.
What does a smart bank (AI bank) look like?
A smart bank's main focus is on its users, or rather on understanding users and responding to their habits and needs in a real-time manner. This way of operating involves a shift from product to user experience. All of this is made possible by AI and machine learning.
In the past, users used to access services by visiting a branch once or twice a month, then transactions moved to online banking, and today mobile apps and even wearable technology (smartwatches) are becoming increasingly common. All of this means that banks need to adapt both externally and internally. A forward-looking bank also needs the right operating model that supports employees, empowers decision-makers and ensures a strong infrastructure.
How to start and what are the benefits?
Every major change starts at the top, which must decide on a digital strategy with clear objectives, supported by artificial intelligence. This is followed by a clear step-by-step plan that takes the whole organisation into a new era by modernising and upgrading existing systems. System upgrades also bring numerous benefits for the bank, such as transparency, speed, efficiency, productivity and overall readiness for future business models. Faster responsiveness to market developments means new opportunities for a better customer experience and thus higher value for banking services.
Banks that have already recognised the value of AI to improve customer experience and business processes are moving faster today to a mode of operation where employees focus on developing smart solutions that put users at the forefront through the use of data and machine learning. The presence of AI also makes for better internal processes, as people are brought into teams to develop ideas for a better future, which in turn strengthens employee loyalty and productivity.
It is hard to think of reasons for banks to stay within their traditional frameworks, and the opportunities that come from working with data and AI are virtually limitless. All the key objectives that make banks profitable and increase customer satisfaction are easier than ever to achieve with new technologies.
