How Cognitive Computing Will Impact Banks and Financial Services

Service industries do their best—for themselves and their customers—when they offer personalised services and it is the same case with banking.

Banks, by nature, have a wealth (no pun intended) of data, catering to millions of individuals of different income, age, location and needs, offering plain vanilla services (savings, loans, fixed deposits), wealth management, etc.

Computerisation speeded up banking and financial services. However, without new capabilities, the paradox of having too much data and too little insight continued.

With the dawn of cognitive computing, customers can now get quick, personalised services such as being risk averse or otherwise. It has also given financial services the power to unleash a new era of innovation and growth.

Cognitive systems unlock the power of unstructured data (industry reports, investment advisory reports, financial news, etc.) using deep text and/or image/video understanding. They offer personalised engagement between banks (and other financial institutions) and their customers by dealing in an individual fashion with each customer and focusing on their requirements.

Financial institutions are discovering the power of data, including such areas as data discovery, data management, and data analytics. And these topics are certainly top-of-mind, as banks and credit unions look for ways to better understand customer and member wants, needs, and behaviors. This type of insight is particularly important as FIs move toward creating a customer-centric omnichannel banking environment.

Overview by Ed O’Brien, Director, Banking Channels Advisory Service at Mercator Advisory Group

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