How an AI banking platform can help you focus on revenue generation
Let’s answer 2 very basic questions,
Why do we run a business? To create an impact on our society and generate revenue.
But how many such industries can create impactful disruption while earning good revenue? Very few.
The banking industry is extremely dynamic and with the Millennials replacing the Baby Boomers it is only going to get difficult. And then comes the bigger question! What can the FIs do to better themselves and surpass their competitors? Do you have an answer? We do!
Artificial Intelligence (AI) helps to increase revenue, utilize advanced technology, and create the best impact. Here are 3 reasons why you need to adapt AI in your FI.
1. Safety – “Attackers can spend months or years developing [hacks], defenders must comprehend that attack and counter it in just minutes,” said Michael Walker, a program manager with DARPA’s Information Innovation Office. Banks and other financial agencies report fraudulent activities every day. This can be easily handled by AI. An AI banking platform can track down unusual behaviors, analyze the logs, and deceptive emails, to predict and block all the possible security breaches.
2. Automation – “Robo-advisors” have the potential to automate personal finance and resources. They can help customers to manage their personal accounts, debts, assets, and investments by themselves. This will not only make banking faster but will also save the time and cost of hiring and training customer service agents.
3. Disruption – The exponentially increasing disruptive technologies can complement each other. AI with Machine Learning (ML), Natural Language Processing (NLP) and Natural Language Understanding (NLU) is a powerhouse combination every bank needs to break through the challenges and outshine their competitors in terms of customer experience.
What every CEO who runs a FI should do!
Be an early adapter of AI– This will help you achieve the business objectives faster. The code for faster growth is, accepting an entirely new product that wasn’t there before.
Make way for innovation– Every sixth home in the US has Amazon Alexa. Apple launched iPhone X with a face recognition feature. AI continued the profit earning streak of these companies. What made an impact is the urge to innovate.
Let AI serve customers–AI can make mass-personalization possible. It can analyze a customer’s behavior from sources such as online browsing, social media, and click rates. This will help your business to provide the right product at the right time. McKinsey has predicted that such mass-personalization can increase sales by 10% or more.
Reasons why a bank should opt for an AI banking platform to generate revenues
Every financial institution can rethink their business and its profit & loss with the help of AI. It’s can give new vigor to every aspect of a banking business helping it to achieve its goal of generating revenue.
Here are a few things you should remember before dismissing the idea of adopting AI in your financial institution. An AI banking platform can:
Determine the best mode and time of communication
AI can formulate programs to identify the best mode of communication and the best time to get a response from debtors. It is based on observing their past behavior, identifying the time they are most active online, the medium they are most responsive on, and everything together will help the organization to earn more revenue.
Measure the effectiveness of communication and decision making
AI can measure customer satisfaction and identify what more can be done to keep customers happy. Increasing conversion rates, higher repayment of debt, increase in revenue from products and services are few parameters that reflect the same. FIs will be able to take quicker and more effective decisions which will create more revenue.
Identify content that will maximize revenue collection
AI can formulate programs that can identify what type of content is mostly liked by consumers. It further tells the kind of content that converts more customers increasing the revenue collection.
The success of AI will boil down to customer impact above anything else. AI can also achieve higher sales number and generate more revenue, it is set to become the ruling technology of the BFSI sector.
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