5 Key Impacts of AI Assistance in Financial Services
As rightly said “Artificial Intelligence (AI) is the next big evolution.”
Ever since machines learning technology has been implemented, a lot has been said about the possibilities and perils that Artificial Intelligence brings in.
While AI is transforming almost all the industries, Banking & Finance is anticipated to benefit the most out of incorporating AI within its infrastructure network & technology in the coming years. According to Forbes, analysts estimate that AI will save the banking industry more than $1 trillion by 2030.
Large amount of automated processes and other applications performed through CRM in financial services are attributed to the integration of AI in banking system and mobile banking apps. It majorly focuses on mobile banking domain & online web transactions to improve the customer service.
The 5 major areas where institutions implementing financial services CRM can best implement AI to improve customer engagement and retention are:
- AI driven chatbots-
As chatbots are gaining comparatively higher traction to other emerging technologies, most of the financial services CRM tools have started deploying it for resolving client queries. Customers now feel convenient communicating over chats rather than waiting in an overburdened & less efficient call centre queue.
In case of complex scenarios, questions can be handed off to a human employee anytime.
Eg. SBI Intelligent Assistant (SIA), developed by SBI is a smart chatbot that efficiently resolves NRI customer queries, similar to that of a bank representative. Similarly, HDFC has smart chatbot named EVA (Electronic Virtual Assistant)
2. Anti-money laundering & fraud detection-
CRM for financial services perform intelligent data aggregation with risk rating models helps in generating high alerts on suspicious transactions which can are done either through cross borders or continual financial rule alterations.
Financial firms can rely more on AI driven statistical models to identify authenticity of series of transactions.
As a result, the financial advisors can then focus more on high risk rated cases with lesser manual work involved in detecting fraudulent transactions through CRM in financial services.
3. Process oriented implementations-
Intelligent process automation through CRM for financial services can reduce time consuming administrative tasks manifold resulting in major focus on customer acquisition & retention.
AI process automation through financial services CRM helps in simplifying processes & enabling them to be encoded in the system resulting in higher accuracy, keeping a close eye on high risk involved transactions through risk rating models with lesser turnaround time.
4. Predictive Analysis-
Taking one step further by predicting the next task based on customer’s purchase history & previous transactions is one of the essentials to retain loyal customers.
CRM for financial services provide high relevance with tailored messaging to each customer helps in delivering the right product to the right audiences which also adds to higher response rate.
Eg. Mutual funds can be pushed to client involved with more financial investments rather than suggesting personal loan as a banking product.
5. Intelligent cross selling-
Forecasting customer habits by micro segmentation of the entire customer database helps in boosting cross sales of similar products which have already been acquired based on their previously made investments.
Also, it is an important aspect when it comes to nurturing new lead via personalized push recommendations through CRM in financial services.
By building internal competencies in the field of data science, big data and machine learning, banks have started adopting the same AI tools which are currently used by Fin-techs. But, these implementations involve commitment from a high level in the organization, and a realization of smartly analyzing the available data is growing with every single day.
AI implementation through CRM for financial services offers first mover advantage to all the existing banks & financial service providers and will likely continue to do so moving forward.
About CRMNEXT:
CRMMEXT, a financial services CRM software, has a proficiency in creating customer journeys with focus on the delivery of high quality CRM implementations. CRMNEXT is extremely flexible with the ability to be customized for multiple verticals including banking, finance & insurance.
