Over the past couple years, the Digital Banking Report has done several research reports on the digital transformation of the banking industry. While the largest financial institutions appear to be keeping pace with consumer expectations, the majority of the industry is falling woefully behind. It doesn't need to be this way. The Digital Banking Report has been researching the financial services industry for more than two decades, tracking industry trends and making predictions about the future of retail banking. Recently, a startling trend has emerged that could have a dramatic impact on the industry worldwide.
AI and machine learning are making the customer experience more personalized and contextual than ever before. Banks and credit unions are using advanced technology to make websites, emails, digital advertising, social media and other content more efficient and effective. This is increasing marketing ROI as well as customer satisfaction. Subscribe to The Financial Brand via email for FREE!There is a great deal of discussion of the potential value of artificial intelligence, machine learning and robotics in banking. Unfortunately, much of the implementation of these technologies lags the potential by a significant margin.
Providers have no alternative to fully understanding each consumer they serve. The future of engagement is not about points and discounts, but about making banking easier and providing personalized experiences that respond to financial needs in real time. Subscribe to The Financial Brand via email for FREE!Banks and credit unions are increasingly adopting a more personalized approach to connecting with consumers across all media channels, according to research from the Digital Banking Report. To stay ahead of the competition, financial services companies are making efforts to build human connections with consumers and trying to build a more emotional style of consumer engagement. This is impacting all customer-facing components of the retail banking organization, from marketing to product development, to back-office operations, channel management and innovation.
Over the last seven years of research by the Digital Banking Report on the State of Financial Marketing, the banking industry has moved from talking about the power of data and advanced analytics to actually beginning to use AI-powered tools in day-to-day tasks. And, although the technology is still rather new, the list of tasks it can complete is steadily growing. Based on the research, AI will usually augment, as opposed to replace, traditional marketing functions. But, it will still have a disruptive effect on the industry. We are already seeing shifts in media used and marketing talent being sought as organizations try to find ways to drive costs down and performance up through AI-powered solutions.
The'AI in Banking' Digital Banking Report surveyed banks and credit unions globally to determine the extent of development of artificial intelligence functionality in the banking industry. The findings indicate that industry-wide deployment is far behind other industries. The door is wide open for forward-thinking financial institutions to leverage the data, insights and advanced analytical tools at their disposal to improve back-office operations and contextual personalization. That said, research indicates that most banks and credit unions – and the industry as a whole – have not kept pace with consumer expectations around digital capabilities or digital engagement compared to what other industries are providing. Nowhere is this more evident than with the banking industry's deployment of artificial intelligence (AI).