AI-Powered Insights: Transforming Customer Experience in Banking

Traditional banks relied on their huge capital reserves to make enticing products and services for their customers. It was an excellent strategy to acquire customers and scale to new regions. But now that digital banking has become mainstream due to the internet and a large number of tech-savvy customers, adopting digital technologies was not an option, but a necessity.

The ease and convenience offered to customers was such that new fintech startups copied from the same playbook. Traditional banks need to upgrade their infrastructure and priorities by putting customers first.

Artificial intelligence (AI) is a brand-new technology that has reached mainstream conversations due to its ability to integrate into various processes. It has transformed banking at multiple banks and assists in automating processes.

Internet Soft, a software development company in California, can create customized AI solutions for digital banking. It understands that customer journeys are pivotal in retaining them in the long run. The following blog by Internet Soft delves into the need for customer engagement, the role of AI in banking, and future opportunities for growth for AI in the finance sector.

Why Banks Should Invest in Customer Engagement

As traditional banks make the shift from analog to digital, customer engagement needs to be prioritized. Banks need to be customer-forward to ensure their future policies, savings, and schemes can be utilized. Here are the reasons AI should be a part of banks:

•   Rising Customer Expectations – Customer expectations have risen due to the explosion of mobile applications. They expect all services to be as smooth. Customers will migrate to banks offering the same services as digital banks. Innovative technologies like AI, deep learning, and machine learning should be leveraged to propel customer satisfaction and loyalty levels. The latent needs of customers should be predicted and forecasted using existing customer data and latest trends in financial instruments.
•   Smart Servicing – The presence of AI in banking will transform customer service. AI can understand the profile of customers and recommend them savings and schemes based on their bank statement and risk appetite. This will ensure continuous engagement with banks and improve their value in the eyes of customers.
•   Voice Assistants – Voice assistants can help customers reach the right representatives at banks or help them connect to the right customer service. It can understand the chats or queries of customers through sentiment analysis to provide appropriate answers. Generative intelligence can also be utilized by the banking staff to follow their instructions to help them in compiling reports or administrative tasks. Voice assistants can answer frequently asked questions (FAQs), help them in transferring funds, and balancing checks.

Benefits of AI for the Banking Industry

Customer experience is pivotal to banks and financial institutions. Many new-age fintech startups have used chatbots or virtual assistants to help customers with lending and reaching financial savings goals. AI can act as a differentiator. The following are the benefits for the industry:

• Exemplary Customer Service – Personalized customer care will go in cultivating customers and increasing the customer lifetime value. Banks need to invest in chatbots and virtual assistants. This would lead to the optimization of resources and cutting unnecessary costs. The latest chatbots supported by AI can give proper responses and respond in a human manner. At least 37% of customers have bought financial products through a virtual AI assistant.
  
• Insights from Unstructured Data – Customers need to be financially literate in order to spend them on custom-made financial plans. Helpful blogs and articles can drive them to the banking website and browse through various schemes and savings plans. The customer behavior pattern can be tracked by AI and analyzed to help agents in targeting the right customers. This can culminate in huge windfalls and lead to a concise plan for retaining customers through digital banking. 
• Empowering Staff with Knowledge – Banking staff are overwhelmed by the vast numbers of customers queuing up at banks. The same can be said of ATM lines. AI in banking can be integrated within digital ecosystems to empower banking staff with the right answers to customer queries. Additionally, embedding AI in smartphones and other smart devices can help customers withdraw money quickly through ATMs, transfer money to beneficiaries, and invest in new securities and financial instruments. 
• Prevention of Fraud – Fraud is a major problem even in digital banking. AI needs to be embedded within core banking solutions to protect retail and corporate clients. It can use machine learning to pinpoint anomalies and detect similar patterns. Prevention of fraud can help banks mitigate risks and minimize financial losses. The use of biometric authentication as an added security measure can boost up the defenses of the security safeguards. 
• Robotic Process Automation – Robotic process automation or RPA is the use of bots to perform repetitive tasks. It can be used in streamlining operations, providing value to customers, and alleviating the load of banking staff. Moreover, banks can use virtual private networks to be embedded with AI to help them login remotely and securely. Operations can be linked to the cloud to strengthen core banking solutions.

Conclusion

While AI can act as a supportive employee and improve performance of banks, it can pose a significant risk. It has certain biases which can lead to certain hallucinations while giving out proper responses to customers. It can also collect customer data without their consent. Best standards and practices need to be followed by banks to ensure no such violations of privacy take place.

Internet Soft, an AI Development Company provides AI-driven banking solutions, revolutionizing the landscape of BFSI software development. Our cutting-edge services support the development of AI solutions while enhancing the overall customer experience in banking.

We create custom-made solutions for chatbots that understand customers and curb expenses for financial institutions. Elevate your BFSI software development with Internet Soft, where technology meets seamless customer experiences.

Join us on a journey to transform banking interactions, ensuring not just transactions but meaningful connections. Embrace the future of finance with Internet Soft – redefining customer experience in banking.

Click here to explore our AI-driven solutions and revolutionize your banking services today! Consult Internet Soft today for a quick resolution.