Artificial Intelligence, Machine Learning, Blockchain, Augmented Reality and Virtual Reality are a reality that we are living in. (Also see, Part One) Here we continue the 5 ways AI and Blockchain are disrupting banking.
#3 Hyperpersonalisation of products & offerings
The banking industry is moving from offering the same product to all the customers to the moment where they aim to understand the customer and offer products accordingly. The main aim is to enhance customer experience and provide to their expectations.
AI helps gather the data, and Blockchain helps validate the data, thus allowing the banking employees to gather insights and offer better services to the customers.
In the path to hyper-personalisation, AI also helps with personalised support, and extending immediate response to the customers.
Let’s take a look at a use case that will help understand this better.
For instance, your customer has been looking for a personal loan, and you know what their exact needs are, you can offer a loan at a certain lucrative percentage. You will know that the customer is likely to convert at this percentage. For instance, an old customer can get some amount of loan at minimal percentage, and you can make them aware of the same. AI will help automate the process of gathering personalised products for the customer group, thus increasing your ability to serve better.
#4 Improving acquisition & retention capabilities
With so much of competition within the banking industry, it has become quite a major deal for the banks to not just survive, but also to keep their acquisition cost at a minimum.
A good ability to analyse the customer’s data, their banking behavior, their external purchases, and what makes them tick can help you understand the way in which you can acquire and retain them. you will be able to improve your offerings accordingly.
For instance, a lot of people tend to change banks for convenience the other offers. If you can understand the kind of convenience they are looking for, and the relaxations they want in the norms, you will be able to retain them better. However, the relaxation and convenience should not come at the cost of security. You need to keep that in mind as well.
#5 Improving mobile experience
Blockchain will guard the data that you have as part of mobile banking. At the same time, mobile apps will incorporate AI to support you better, and offer immediate assistance to your work. They will be guiding you through your stay on the app.
For instance the virtual assistants that are AI-based will help with reminders, alerts and other aspects, thus enhancing mobile experience. They will also support you with your queries and offer an immediate response. The idea is to make the usage clear and hassle-free and the overall banking experience enriching.
If anything, the combination of AI and Blockchain tends to add value to your financial products and will keep improving the overall experience of the stakeholders of this industry. AI will offer the models required for quicker decision making, while Blockchain will enable data validation and protection. However, it is not just AI and Blockchain, the future also looks at AI-Blockchain duo painted with Cloud, Mobile, and IoT. You will need to create a holistic environment using all these technologies to gather relevant data and translate it into valuable products.
So, are you ready for this technology evolution? Tell us how you have been using these technologies in your organisation, and what are the potential benefits you are gaining from them.
The author is Pradeep Makhija, digital marketing executive, Space-O Technologies.
About the author
Pradeep Makhija is a digital marketing executive at Space-O Technologies, a mobile app development company. He likes to share his knowledge and experience with people around by writing articles related to mobile apps & new technology. In his spare time, Pradeep likes to explore and read more about the trends and needs of a mobile app in different sectors.
Follow us and Comment on Twitter @TheEE_io