How AI Will Challenge Small Banks to Innovate - Fintech News

Artificial intelligence promises to change customer relationships with banks. As more customers bring devices such as Amazon's Alexa and Google Home into their residences, forward-looking banks can offer automated services to help users perform tasks such as requesting an address change or submitting an application for a credit card or personal loan. In a recent report on the projected impact of AI on the banking and finance industry, the World Economic Forum warns that small and midsize banks struggle to find their footing in this rapidly changing environment. Firms with fewer assets now lag behind larger investment firms when it comes to AI and digital transformation, according to the report, "The New Physics of Financial Services," which cites a survey by Digital Banking Report that found that 48 percent of banks with more than $50 billion in assets have already deployed an AI solution. That's compared to banks with $1 billion to $10 billion in assets, of which only to 7 percent have an AI solution.