What is the true impact of artificial intelligence (AI)? How can AI transform the relationship between the advisor and the customer? What services and features can AI bring to the banking sphere? The financial services industry has until recently been homogeneous, with many traditional firms offering similar products and services to similar customers under similar business models.

The fintech sector has been chipping away at this for a few years, but rudimentary digital tools are still dominating. Newcomers continue to attempt to engage customers with enhanced experiences, new technology and services that address historical limitations, but in turn, weaknesses continue to be exposed and highlight the need for modernisation.  

To meet the ever-growing demand for quick responses, chatbots have emerged in the market as a viable alternative to traditional banking services. These intelligent virtual assistants are capable of answering users’ requests in real time, be available 24/7 and simplify many banking operations.

This results in a substantial saving of time, energy and satisfaction for the user that is camped behind his computer or his smartphone.  

However, the use of large-scale language models (LLMs) such as ChatGPT changes the landscape of current chatbots, transforming them into truly deployable assistants. These virtual assistants are capable of addressing a wide range of questions and providing real-time information. Nevertheless, it is crucial to maintain adequate control over these systems to ensure responsible and ethical usage.

The customer expectations in 2023 are centered around personalization. With advanced chatbot services, automated conversations can become real assets for both customers and banks. On one hand, these conversations can take place anywhere and at any time. On the other hand, they can be precise, tailored to the customer's profile and history, and take into account the context and emotions involved.

A recent Finextra Research report, in association with Worldline, ‘Embracing Technology to shape the Future of Digital Banking’ explored how “AI, on the back of better understanding of customer behaviour, can be applied to predict and tailor services and products, as well as making key decisions, creating a unique and dynamic experience based on the individual.

“While banks are using ML to automate processes more and more, the power of artificial intelligence has largely yet to be harnessed, whereby models are trained to learn and adapt in real time as they sift through reams of data,” the report highlighted.

Increased digitisation will mean customer needs will change again in 2024

Most people use the Internet, have mobile phones, and have connected their bank accounts to these devices. This is customer self-care. But in cases where the situation requires advice and genuine human support, human advisors will always take over. And AI will also revolutionise these practices: more knowledge, speed, suggestions, and accuracy in agents' proposals, as they will be assisted with new tools on their dedicated interfaces.

AI can support conversational banking and the interaction between customers and banks

While customers benefit from self-care, human advisors remain essential for situations that require human guidance. Meanwhile, AI transforms practices by providing advisors with new resources and capabilities, enabling them to better serve customers and enhance the quality of their recommendations.

This combination of human expertise and advanced AI capabilities will enhance the overall customer experience and strengthen the trust relationship between customers and their bank.

Alongside this, with AI being utilised to this extent, every part of every individual customer experience can be personalised. When information is needed, personalised information is provided. 

The continuous evolution of AI holds significant potential to transform the landscape of customer services in the banking sector. By embracing these advancements and utilizing them responsibly, banks can offer superior customer experiences, improve operational efficiency, and adapt to the changing needs of their clientele. The key lies in leveraging the benefits of AI while maintaining a focus on security, relevance, and personalized services for each customer profile.

Download the recent Finextra Research report, in association with Worldline, ‘Embracing Technology to shape the Future of Digital Banking’ here.