Smart technologies like AI or machine learning have become so prominent that banks should ensure they feature heavily in any strategy. The superior segmentation and targeting potential these technologies provide has powered a new era of personalized, highly-targeted communications. Competitors use AI to segment and target and customers to perfection, crunching big data to present each customer with highly relevant offerings. Customers have become used to these personalized efforts, so any bank that has not gotten to grips with technologies like AI is most certainly missing a trick.
Effective segmentation is done when data from a range of sources, including CRM, online behaviour, or even emails, is analyzed and combined to create a 360 degree picture of a customer’s needs. Working with big data in this way creates a need for unprecedented analytical capabilities – so sophisticated they can consume huge amounts of time and resources.
Gathering data, analyzing it, and moulding it into meaningful information is a huge task for humans, especially when it comes from disparate, unstructured sources. This is where AI and machine learning come to the rescue. AI easily brings clarity to huge amounts of data, turning it into useable information. In fact, this really is the only way banks can do this efficiently. Machine learning picks up trends from the data, producing models and predictive analyses to help target their efforts much more effectively.
By conducting hours of analysis in seconds, AI frees employees from this task and significantly reduces overheads. Accurate segmentation makes wasted customer acquisition or retention efforts a thing of the past, driving further cost savings. In addition to saving time and resources, AI can boost sales by pointing out new cross-sell and up-sell opportunities. Modelling a customer’s income and typical investments, for example, can help to predict their investment preferences.
Smart technologies empower customers to easily automate manual tasks on their banking app, while empowering the app to offer timely, relevant services or product suggestions. Keeping the customer interested in this way gives them good reason to stay with their current bank, supporting retention efforts and reducing churn.
AI and machine learning are without a doubt, disruptive innovations. They handle huge, repetitive tasks in a more efficient, consistent way. They don’t get bored or tired, and results are always consistent. Smart technologies complement human beings in their work, and can be programmed to fill in the gaps where needed. Banks that familiarize themselves with them and use them effectively will ensure both the bank and end customer get exactly what they want – every time.