How AI can help banks of any size make agility a competitive advantage
“Make agility your differentiator
As the pace of change in the industry has risen exponentially, many banks have started to discover that a measured, slower way of doing things won’t work any longer. Success these days demands the ability to not only react quickly and decisively to the shifting competitive tides, but also to proactively get out in front of the next big disruption.
That’s agility, which can be a true differentiator for banks in a mostly commoditized industry. But getting there requires a willingness and an ability to do things differently, using the power of gen AI to modernize the development process and stay on the cutting edge of what comes next.”
Beyond the Bot: Why Embedded Conversational AI Is Banking’s Next Strategic Advantage
“Chatbots consistently score the lowest in customer satisfaction across banking channels. Just 29% of users are satisfied with chatbot support, compared to 60% for mobile apps and 57% for ATMs. Even email and call centers rate higher….Customers want online interactions that are as personalized and intuitive as their branch experiences. In fact, 72% say personalization influences where they bank.”
Banking industry, big tech unite to forge AI adoption guidelines
“The Fintech Open Source Foundation, called FINOS, launched a coordinated effort to unite the banking industry and technology providers around vendor-neutral AI adoption standards for financial services companies, according to a Tuesday announcement.”
Banking on AI: Firms such as BNY balance high risk with the potential for transformative tech
“In just a few short years since the launch of ChatGPT, AI has already changed banking. According to a 2024 report from the research and analytics platform Evident Insights that ranked the major global banks by AI adoption, all 50 that the firm analyzed referenced AI in at least one investor relations document. Over half publicly report on use cases in production. The leading bank in the rankings, JPMorgan Chase, announced at a conference in September that it valued AI use cases within the bank at around $2 billion.”
Banks enter agentic AI era as tech race heats up, ROI in focus
“Commerzbank’s implied 120% ROI underpins AI push – Commerzbank’s projected €300 million in benefits from €140 million of AI investments implies are turn on investment (ROI) of nearly 120% — a figure underpinning its AI push. The expected gains, equal to about 25% of its guided profit growth through 2028, stem from cost efficiencies and improved fraud detection. Realizing them will depend heavily on upgrading IT platforms to fully leverage AI capabilities. Bloomberg Intelligence’s November 2024 survey found legacy systems still absorb around 60% of banks’ tech budgets, highlighting a key barrier.”
Risk Management, Not Regulation, Should Fuel AI Adoption in Banking
“Regulation and compliance have inspired dozens of startups and many millions in Silicon Valley VC investment, but figuring out who is doing handling what pieces can be a challenge. The below is an attempt to identify areas of focus for planning.
1. Complaints Management and Oversight. Use natural language processing and sentiment analysis to track customer grievances and identify systemic risk signals.
2. Continuous Compliance Monitoring and Testing.Implement AI solutions that monitor transaction flows and behaviors and document updates in real-time to maintain constant compliance assurance.”
The future of AI in banking
“Much like the evolution of cloud platforms in recent years, banks must move beyond the hype and consider the practical applications of AI. While there are proven examples of effective applications, many banks still consider AI to be experimental, with many of their pilot programs never moving into full-scale implementation. Banks must consider their artificial intelligence and machine learning approach and invest in an AI implementation journey for successful outcomes. Here are critical focus areas, across six steps, where banks may need to evolve their processes to be successful on their journey…”