To Battle Fin-Tech Upstarts, Big Banks Are Turning to—What Else?—Technology
“One recent report from the International Data Corp. found that the banking industry is the second biggest investor in AI technology worldwide behind retail.
‘The financial industry is uniquely ready to make a move in the space and bring that computational experience,’ says Jason Mars, CEO of Clinc, a startup that makes chatbots for financial institutions like Barclays and USAA.
These virtual assistants are expected to trim hundreds of millions of dollars in service expenses as the technology becomes one of the dominant forms of addressing customer issues.
A study from Juniper Research in February forecast that industrywide cost savings from chatbots could reach $7.3 billion by 2023, a 3,400 percent increase from the estimated $209 million they are expected to provide this year.
‘Banks have come to realize AI is not ready to work miracles yet,’ notes Forrester analyst Aurélie L’Hostis, who specializes in digital strategy for retail banks. ‘You really need to have a specific approach to drive your strategy. You can’t just launch a chatbot without knowing why you’re doing it.'”