How AI improves banking
The DXC Digital Directions series of papers provides insights into achieving new levels of innovation, productivity and investment as companies scale their digital efforts.
Read an excerpt below from the position paper, Master digital banking to succeed in financial services.
Customers know their bank, but how well does the bank know them? Banks want better relationships with their customers to provide more personalized and customized services. Artificial intelligence (AI) can help banks understand their customers in powerful new ways.
AI can help banks:
- Be more trustworthy. AI can detect anomalies in streams of financial data and make it easier to comply with anti-fraud regulations. By getting better at spotting fraud, banks increase compliance and strengthen their customers’ trust.
- Be more efficient. AI can forecast demand and narrow operational choices to options that will optimize tasks such as staffing and branch location planning. Banks become more efficient by eliminating wasteful practices from consideration.
- Be more understanding. AI can learn to hypercustomize customer interactions. It can improve risk calculation based on personal behavior. It can infer a customer’s need and recommend the next best offer. A bank’s system “learns” to understand the customers and offer exactly what they need.
- Be more helpful. AI lets banks provide personalized services in real time. Customers showing interest in high-end purchases online may be candidates for services such as preapproved internet banking offers, with loan deposits available within seconds of completing the transaction. When a bank responds quickly, customers stay happy.
- Apply AI as a differentiator. AI can mean competitive advantage. Banks should find areas of the business to make as smart as possible as quickly as possible. They can identify the data stories (such as detecting fraud) that might make a difference. Then banks can test their ideas using utilities and small experiments, learning and adjusting along the way
Making sense of the terms analytics, advanced analytics, machine learning and AI in banking
Continue reading the position paper, Master digital banking to succeed in financial services.