Artificial Intelligence in financial services is still largely filled with untapped potential. While many bankers may think of things like chatbots and fraud monitoring when it comes to AI, in reality the technology can be used in just about any conceivable part of a bank or credit union. For the most part the industry has not even scratched the surface of how AI can transform banking. Here are some of the top ways financial institutions can deploy artificial intelligence in 2022 and beyond. Let's start with the most obvious application first.

The importance of data and artificial intelligence is at the center of almost all conversations around digital banking transformation.

Through the years of its troubles, when it hemorrhaged reputation and people, Wells Fargo never backed off from its determination to innovate. The fourth-largest U.S. bank has been a digital banking powerhouse for years on both the retail and business banking sides. It has 30 million digitally active customers -- about 43% of its total customer base. The bank's Innovation Group, a key element of that success, has been led since May 2018 by Lisa Frazier, EVP and Head of Innovation, making her one of the highest-ranking women in financial technology. Frazier, an Australian, has an unusual background for a digital banking leader.

Is your financial institution getting the most out of your strategic plan? The future of every banking organization depends on the development and implementation of a strategic plan that's well thought out. But strategic planning without commitment to action, and then the action, results not only in no progress ... but lost ground. Subscribe to The Financial Brand via email for FREE!The benefits of strategic planning are well documented. Done well, a strategic planning process allows organizations to set a direction, providing objectives and goals that are used for assessing progress across the organization.

As the world grows increasingly digital, providing the'humanized engagement' becomes ever more important. Digital consumers demand more today than speed and simplicity. They want to feel good about their interactions with technology, and this requires some element of the personal touch. Subscribe to The Financial Brand via email for FREE!Despite all of the talk about improving the customer experience, most financial institutions have focused on using digital technologies to improve their bottom line. With regard to the consumer, the focus has almost entirely been on improving speed and simplicity.

As the world becomes more digital, the importance of humanized engagement becomes more important as well. As opposed to simply wanting speed and simplicity, the digital consumer also wants to feel good about an interaction. Subscribe to The Financial Brand via email for FREE!Despite all of the talk about improving the customer experience, most financial institutions have focused on using digital technologies to improve their bottom line. With regard to the consumer, the focus has almost entirely been on improving speed and simplicity. Financial institutions must also consider the emotional impact of digital interactions.

Consumers expect their financial institution to understand their needs and deliver personalized solutions similar to what they receive from Google, Amazon, Facebook and Apple. Unfortunately, despite advanced AI technology, most personalization expectations remain unfulfilled. The combination of big data, advanced analytics and new digital technology is helping all industries create engagement with consumers on a level of personalization never before imagined. We are quickly moving from an eCommerce environment that once responded to customer needs to one that now anticipates needs… in real time. In the financial services industry, one of the results of this digital transformation is a marketplace crowded with new fintech start-ups and, to a certain degree, major technology firms such as Google, Amazon, Facebook and Apple that are moving market share from legacy banking organizations.

One of the strongest differentiators in the future will be the ability to deliver real-time, highly personalized experiences. The inability to deliver on the'personalization promise' is a major concern for banking executives according to new research from the Digital Banking Report. Subscribe to The Financial Brand via email for FREE!It is no longer just the domain of large banks to be able to leverage considerable technological sophistication and vast data resources to give consumers specific financial solutions. The cost and access to insight and communication tools have improved so they can be used by financial services firms of all sizes to deliver the level of customization expected from today's consumer. More and more financial organizations are seeing the benefits of a personalization strategy, thanks to new digital applications and advances in predictive analytics.

Digital disruption, fintech infiltration, big tech competition, or even new technologies such as artificial intelligence seem daunting. Yet the most serious threat to banks and credit unions lies closer to home but remains more difficult to address -- because it is ingrained in almost every traditional financial institution. Subscribe to The Financial Brand via email for FREE!Financial institutions are being disrupted on almost every front due to digital technologies, new competition, redefined business models and increasing consumer expectations. Increasingly they need to innovate, become more agile, utilize data and advanced analytics to support cost reduction and revenue improvement, and build partnerships with organizations who may also be competitors. So, which of these massive changes pose the greatest risk to the future of banking?

Artificial intelligence (AI) is poised to massively disrupt traditional financial services. The World Economic Forum identifies nine ways AI is creating new threats, new opportunities, and new competitive forces for financial institutions. The result may be a marketplace where only the largest and most specialized niche players survive. Subscribe to The Financial Brand via email for FREE!Mid-size and small banks and credit unions could soon find themselves at a serious competitive disadvantage. Ongoing developments in artificial intelligence have the potential to significantly change the way back offices operate and the experiences consumers receive from financial institutions.