How Financial Institutions are Using Artificial Intelligence
The financial industry is one of the first to use big data analytics on structured data such as balance and transaction information for customers. However, as the sheer volume has grown larger, the legacy analytic processes have become less efficient. These institutions have turned to artificial intelligence and machine learning to unify all types of information and provide a clearer picture of overall customer satisfaction and company performance. Currently, banks worldwide process 35.5 billion different types of transactions per day. The US alone has 333 million Visa credit cards in circulation. Additionally, 62% of Americans now bank online, up 15% since 2014. This volume of traffic and information is causing banks to look at new ways of utilizing advanced analytics to streamline customer service, analyze enormous data pools, and gain valuable feedback about customer expectations and habits.
In 2016, Bank of America launched the customer service chatbot they call Erica. This artificial intelligence is designed to streamline customer interaction and increase engagement by providing immediate response to people looking to have their needs met. Master Card also intends to launch an entire AI powered chatbot platform where customers can manage their finances, create transactions, and shop with the help of an AI assistant. 80% of surveyed banks believe that artificial intelligence will revolutionize the way information is gathered and how they are able to interact with their customers. The recent Banking Technology Vision 2017 report from Accenture revealed that 60% of financial institutions use data to gain access to insights, while 25% use AI to engage with their customers via outside channels with 10% using AI only to resolve customer service inquiries.
Accenture research also revealed that out of 579 financial institutions surveyed, 78% believed that AI would enable a simpler interface. 89% of the companies surveyed believed that AI would revolutionize how data is collected. 67% believe that AI will help them overcome the struggle with customer service, and 34% plan to implement AI within the next year.
As artificial intelligence continues to improve, financial institutions and other industries will find ways to more efficiently analyze information, increase customer engagement, and improve productivity. Most companies believe that AI is the business tool of the future and are investing heavily in the technology to create data driven decision making on all levels of their business.