Every business knows that technology stagnation in an ever-evolving market environment could risk being sidelined. In this digital age, banks and financial institutes need to realize that digital disruption in the industry is inevitable. Research by Accenture shows developed or emerging market banks can possibly drive up return on equity by more than 5 percent, so there is a great cost benefit in digitally transforming this industry. Let’s discuss what is digital disruption and some of the technology trends in the banking industry.

What is digital disruption and what does it look like?

The Fintech’s promise to deliver superior customer experience and improve product and service lifecycle has created high expectations amongst customers and FIs. The banking industry is constantly looking for ways to improve customer experience, increase operational efficiency, respond faster to changing business circumstances and adopt new banking trends. Some of the trending technology disruptions in the BFSI sector include:
• Artificial Intelligence
• Machine Learning
• Omnichannel Banking
• Blockchain
• Big Data

Impactful Digital Disruption in Banking Using an Intelligent Banking Assistant

Progressive banks would recognize that trending technologies such as AI, ML, omnichannel banking, blockchain, and big data are exponentially adding to the digital disruption in recent times. Let’s discuss these trends and the impactful disruption they have in the BFSI sector:

Artificial Intelligence
AI Chatbots or Intelligent Banking Assistants are big trends reshaping the banking industry. From automated and real-time responses to cost reduction in hiring, managing, and training customer agents, AI is changing the banks and customers interact and transact.

Machine Learning
ML and AI together are set to lead the digital disruption in the baking industry. From solving problems around debt collection to understanding complex nuances of the human language, machine learning plays a big role in driving customer-centric strategies. It is with the help of ML and predictive analytics that banks can augment strategizing and optimize business processes.

Omnichannel Banking
Millennials are open to paying for new experiences which include powerful data analytics, customized payment methods, and omnichannel user experiences. In response to customer demands, a “one-stop” financial assistance service using a powerful, holistic and omnichannel interface is needed.OurAI platform integrates with all digital channels offered by financial institutions today (including website, mobile app, social media, email, and more) as well as futuristic platforms like intelligent banking assistants and AI-powered chatbots.

Blockchain
Accenture analysts have discovered that the world banking sector will save up to $20 billion by 2022 by implementing blockchain. Blockchain technologies alongside intelligent banking assistants will save time in completing third-party transactions, reduce infrastructural and transactional cost, make financial trade more secure with cryptocurrencies and also improve data quality.

Big Data
The availability of powerful data through high-level technologies can help banks and FIs improve customer experiences. Intelligent banking assistants, AI-chatbots, robo-advisors, and other AI-driven platforms can map and produce real-time data of customers. This data will help to create unique customer experiences, provide better security and help FIs take better business decisions.

Digital Disruption in Banking – A Boon or Bane?

While customers need a change, they are equally skeptical to adapt to it. Digital disruption in the BFSI sector can be scary for a customer inclined towards conventional banking techniques. There are several arguments why banks should not adopt Intelligent banking assistants and AI platforms to change customer experiences. However, the impact and benefits of digital disruption in the banking industry exceed the skepticism. Here’s why digital disruption in banking is a boon:

• It empowers banks to provide personalized and customized services by utilizing customers data.
• It helps customers take relevant decisions by providing information in real-time.
• It provides customers with ‘self-serve’ services such as resolving issues, purchasing products, and availing services using AI-powered technology.
• It automates financial transactions across channels seamlessly without the need for human intervention.
• It enables voice assisted banking, allowing customers to give voice commands to transact and interact. Therefore ‘democratizing banking’ and making banking accessible to people with disabilities. For instance, our AI Accessibility Assistant provides personalized, natural and intelligent assistance to differently-abled customers and prospects, 24×7. It not only provides voice assistance but seamless assistance for visual, motor and cognitive disabilities.

The success of banks leveraging digital disruption will ultimately depend on how they adapt and adopt. It will depend on how they use the technology to augment personalization, improve customization, optimize processes and reduce costs. The quicker a bank recognizes the power of AI banking technology, the faster it will be able to leverage its impact.