Artificial intelligence to test customer loyalty

According to the World Economic Forum and Deloitte report, released today, AI will dramatically upend the traditional dynamics of the financial services system, and this is good news for customers. "Banks today may have customers who aren't willing to change banks because of the high costs associated and the effort involved with shifting mortgages," Deloitte Australia digital partner Joel Lipman said. "But the future will see these costs removed as AI developments, such as personal banking assistants, are able to identify the best deal for customers and move them without the current high dependency on humans." He said this will be the "new battlefield for customer loyalty" as past barriers to switching, like cost, speed and access are eroded. At the same time, consumers can expect tailored banking solutions, which will also shift the existing dynamics. "As past methods of differentiation erode, AI presents an opportunity for institutions to escape a'race to the bottom' in price competition by introducing new ways to distinguish themselves to customers," the report said.