“To overcome this challenge, data exploration and extraction will become vital and prove a turning point for banks in 2022. We’ll see banks undergo large-scale data exploration programs to scruntize and examine the data they retain so they can fully understand their data assets. This includes everything from transaction and payroll data through to foreign exchange data.
Ultimately, banks of the future will need to differentiate themselves by demonstrating they are connected, present and relevant to customers as they navigate their daily lives, and focus on becoming trusted advisors in the eyes of those users.
While banks have a wealth of data, many also have significant technology gaps. Luckily, one of the most influential technologies today can help them address gaps between merely holding and effecitvely using data: artificial intelligence.
Banks can leverage AI to shorten the KYC and AML compliance requirements by conducting the necessary checks and following all the processes, just like digital bank Monzo did for its onboarding. It focused on optimizing verification accuracy, lowering signup abandonment rates, reducing manual review and improving verification speed. Banks can now get one step ahead and create a bank that is driven extensively by algorithms that nudges its customers at the right time to make the right decisions that consider customer financial goals.
If banks continue to rely solely on these robust, but rigid core systems, can they remain relevant to customers?
What banks must do in 2022 is deploy a middle layer that has the intelligence to translate data available in their core ecosystem into actionable insights. This middle layer will amplify the effectiveness of the robust core system making the bank more agile and flexible to meet customer needs while leveraging the benefit of a robust core. This can help banks effectively deliver value while taking informed decisions to remain profitable.”