Increasing demand for solutions to simplify banking operations is driving the AI in Banking Market

  • “Due to increasing implementation of AI-driven applications in the banks, including customer relationship management (CRM), data analytics & visualization, and chatbot to enhance customer experience and back-office activities, the software segment is projected to register a significant revenue CAGR of 43.1% during the forecast period.
  • In terms of market share, the deep learning & machine learning segment is expected to lead among the other technology segments in the global AI in the banking market during the forecast period due to growing adoption of deep learning & machine learning approach for risk assessment in banks.
  • Increasing need to optimize customer engagement by introducing AI-driven virtual assistance and provide 24/7 customer services and answer customer queries and grievances is expected to contribute to revenue growth of the customer service segment in the global AI in the banking market during the forecast period.
  • Due to growing need to offer improved customer service in the banking industry, the Chatbot segment is projected to lead in terms of revenue share in the global AI in the banking market during the forecast period.
  • Factors such as growing emphasis of banks in countries in North America on enhancing banking operations with the use of advanced technologies are resulting in the market in the region accounting for comparatively larger revenue share than other regional markets.”

Business Leaders: Do You Have a Digital Mindset?

  • “Leonardi and Neeley believe achieving a digital mindset requires a level of comfort with analytics. They stress data is not a natural substance. They say it is a misnomer to say data are collected. It is more accurate to say that data are produced.
  • Leonardi and Neeley suggest that having digital mindset means you are data literate and comprehend the risks from the processes used to produce data. Even automated data is not free from error or consequence.
  • To be clear, the issue isn’t having data; it is interpreting data and drawing conclusions from data. To do this, statistics represents the best means for analyzing the underlying data patterns. More specifically, it allows digital workers to draw conclusions about a population from a sample dataset.
  • The speed and scale of change in the digital era makes experimentation a requirement. Leonardi and Neeley say rapid prototyping and data analysis improve internal work processes, products and services. Central to making this work is establishing a culture that embraces experimentation.
  • For this reason, Leonardi and Neeley stress digital transformation isn’t a goal you achieve. It is a means to achieving changing business goals. To succeed, organizations must integrate data silos. MIT-CISRs research finds that 51% of organizations still have their data locked away in silos.
  • Without question, no business will be unaffected by digital transformation and every form of work will be changed. To succeed, organizations need technical resources, but it is just as important to transform the mindsets of business leaders.”

Five Findings From FinovateEurope 2022

  • “Embedded finance is the buzzword of 2022, but unfortunately it’s still understood too narrowly, focusing on the not-so-innovative expansion of distribution channels. And embedding financial products into customer journeys isn’t easy, a challenge that mmob — another “Best of Show” winner — tries to solve with its partnership platform. But there’s a bigger opportunity around bank-as-a-service solutions (as Crassula demoed)
  • Embedded finance is just one of the many open finance use cases that, if done well, should offer customers more choice, relevant products at the point of need, automated and invisible services, and more control of data for better financial outcomes. It also needs more fintech innovation in the areas of digital identity, data aggregation and analytics, and actual value-added services built on top of those”

Fintech rise forces retail banks to pivot, says report

  • “Customers are pivoting to competitors that offer more personalised, bespoke experiences, leaving retail banks lagging behind. That’s according to the World Retail Banking Report 2022 (WRBR) published by Capgemini and Efma.
  • The survey showed that 75% of customers are attracted to the cost-effective, seamless services offered by fintechs and traditional banks simply cannot keep up.
  • In the report’s ‘Voice of the Customer’ survey, three quarters of respondents said they are attracted to agile fintech competitors as they offer fast, easy-to-use products and superior customer experiences. Conversely, around half said their current banking relationships were neither rewarding nor emotionally connected, and 52% said banking was not ‘fun’.
  • According to the survey, more than 70% of banking executives said traditional banks lack data and analytics capabilities.
  • ‘While this has evolved within many of these incumbents’ digital channels, customers still expect branches to be experience centres, filled with self-service options and financial advice. By strengthening their ability to collect and analyse data, providers can identify what customers want, which ultimately is consistent omnichannel banking experiences.’”

Revolutionizing CX with chatbots

  • “According to Forrester, 73% of customers say that the most important thing a company can do to provide them with good service is to value their time.
  • Considering areas of opportunity for reducing customer hold time and increasing the likelihood of getting them to the right person the first time – not to mention the time and workload reduction for human employees – skillful deployment of chatbots offers a winning strategy. While chatbots will never replace the human component of CX, they have shown to increase customer retention significantly, loyalty and overall satisfaction.
  • According to Tidio, over half of consumers (62%) would rather talk to a chatbot than a human agent because of the wait time reduction.”