Finance Trend: Artificial Intelligence for Millennials

Artificial intelligence (AI) will become the primary way banks interact with their customers within the next three years, according to a recent report. It could be a game changer for the industry, if banks don’t forget what matters most to Millennials.

The hype surrounding AI, blockchain and data intelligence in finance is only going up, fueled by fintech and the big tech companies that are developing AI technology at top speed. AI could be the holy grail, the solution to personalised and instant customer service, the answer to the question of how to survive in a fast-changing world.

Some of the AI examples out there are Capital One’s co-op with Amazon Echo’s Alexa, allowing people to check their accounts and pay credit card bills via the Echo device, and HSBC’s virtual assistant Olivia, who answers questions about credit cards or current accounts.

So far, so good. One would agree that bankers are finally getting the point that tech companies have long since understood: putting the consumer first — designing products and services starting from their interests, behaviour and moods — is the key to success. It’s no coincidence that Millennials trust tech companies more than they do banks.

Believe us, youngsters know that tech companies are no holy saints, and that the Googles and Facebooks are not using the knowledge they gather in consumer’s best interests. Even so, they trust banks even less and a big part of the explanation is that the apps and the services banks provide their young consumers, aren’t as user-centered as they should be.

In order to design in a way that truly taps into human behaviour, banks need to start using their data to analyse human behaviour. There are fintech out there that match financial transactions with personality traits through HR, so banks would know how, when and with what products they have to approach that specific consumer.

Introducing AI to fully understand customer’s needs and goals will be a game changer for the banking industry, if banks will put the same amount of effort into designing apps, services, products and communication that fit their consumers’ life, moods and desires.

This column is a B-Hive and Trendwolves collab. Click here for the other columns