The Rise of Artificial Intelligence in our banks - Financial Services | Deloitte Australia has been saved
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Artificial Intelligence in an open banking environment has revolutionised the way customers approach and leverage their financial information.
The face of banking is changing across Australia and around the globe. With the launch of open banking and the Australian Consumer Data Right, the latest digital technologies and an ever-changing regulatory landscape, customers are demanding enhanced experiences and increased value for money. Artificial Intelligence (AI) is just one technology that is enabling banks and financiers to provide increased efficiencies behind the scenes, new product lines upfront, and to ensure a heightened customer experience for all.
The customer experience has become the significant driver of any brand’s growth and often their point of differentiation. The main force behind this is data; explicitly, the data that companies collect and hold on their customers. With the right tools and technologies, quality data can be analysed and used to power customised solutions and personalised product ranges. This digital evolution is seeing a race for the banking industry to incorporate the latest AI technologies and Cognitive Services into every aspect of their business.
Officially, AI is a branch of computer science dealing with the simulation of intelligent behaviours in computing; but one evolution sees machines imitating intelligent human practices as well. It is in this format that banks are seeing the most significant advances with computers able to classify, process, analyse and perhaps most importantly, visualise products and services that fit the customer’s needs in a far more efficient, productive and cost-effective manner than traditional human-led products and services ever could.
AI is enabling banks and Fintech’s to provide many products and services to customers that may have been considered cumbersome and cost-prohibitive to supply in years gone by. From assisting customers to gain greater clarity over their banking products and behaviours to the setting of financial goals, AI is helping both in a retail and business banking capacity. With increased education and insights, the simplification of banking and finance products are leading to customer’s achieving their financial goals faster than ever before.
Beneficially, the flow-on effect of introducing cutting-edge technologies into a traditional banking stack is the raised customer satisfaction of the overall brand, not just in the application or product. This effect has led to an increase in deposits and share of wallets for brands that have chosen to invest in AI.
The benefits to tech-enabled banking experiences
Learning from the UK
The launch of open banking in the United Kingdom in 2018 has seen an explosion of newly developed and existing AI stacks. This innovation has revolutionised the way customers approach and leverage their financial information. From predictive analytics recommending the best-fit bridging finance product to Small Businesses, or a gamified saving application encouraging the younger generation to learn more about their spending habits, AI has been included in the vast majority of both new challenger-bank offerings and traditional banking solutions.
AI is not only changing the customer face of banking, but it is also assisting in the risk management, and operational processes of both the larger traditional banks and the digitally-savvy neo-banks that are entering the marketplace. One significant advantage that an AI-empowered system has over its human counterparts is the ability to crunch a substantial amount of data, in a relatively short period of time, with near-perfect accuracy. This type of scenario is currently being trialled in assurance processes, risk management and credit assessment of selected lending and advice products. Brands that pair Artificial Intelligence and Machine Learning with a developed, ethical and diverse methodology are ever-vigilant for the perception of bias and trust concerns of the public and their customers.
Trust, and trustworthiness, are the foundation for people sharing information
People having varying levels of trust in the ability of different types of organisation to keep their money safe and their information secure
Trust - all people
Whether the introduction of AI serves to delight the next generation of customer experience, or is affecting change across the back-end of some of the world’s largest banking brands, with a considered strategy, and a diverse, unbiased implementation plan, AI, and its many iterations are here to stay in the world of finance. This will become particularly evident as the landscape changes in an open banking environment. You may even be using an example of this phenomenon without realising it!
Jamie joined Deloitte’s Data Modernisation team after spending more than 25 years in senior leadership roles across the Financial Services, Technology, Defence, Spatial Industries, Telecommunication and Data sectors. Jamie has an extensive background in senior business development, general management, banking and wealth management roles, as well as leading development and data/technology companies through product development/implementation, capital-raising and global expansion.
Melissa is a partner in the Sydney Data practice in Deloitte Consulting with over 25 years’ experience in data and information management. She joined Deloitte in Jan 2014. Her role prior to that was Executive Manager, Data Services at CBA, where she worked from 2007 to 2013. Prior to CBA she worked in consulting roles in the US and Australia.