Mercator published “70+ Processes Banks Have Already Improved Using AI” in January 2019 but given the stress of the Covid-19 pandemic, the forecast almost certainly needs to be updated. Covid-19 hit support functions even as institutions had to send people home. While regulations required banks to have contingency plans for situations just like this, the onslaught of calls were just too much to handle without significant delays. In response to these problems, Mercator expects more banks will speed up their evaluation of conversational AI to reduce the number of call center staff required to meet emergencies. This article is a newbies view of conversational AI and other applications that increase value to consumers:
“For decades, banks have used AI to automate their credit decisioning processes. From simple rules-based systems, they have have now evolved considerably. Products like Mindbox® have been used by mortgage servicers to predict questions that might be asked based on a customer’s past behaviour, recent transactions and their loan disposition.
By 2022, about 90% of all client banking interactions will be handled by Automated Banking Assistants (ABAs), saving $8 Billion annually (source). In addition to cost savings, the improved turnaround time will encourage the ABA to cross sell other bank products, thus actively expanding our business.
AI Benefits Consumers:
In developing countries, customers do not have the pervasive problem of overdraft fees. However, they can sometimes be careless with spending. Many of them engage in grey spending – paying for Netflix but never watching it, getting a 12-month gym membership, but dropping out. Third Party Apps like ‘AskTrim’ allow customers to not only to list out their spending but will also negotiate costs on Internet/ Phone bills. Consumers can also use the app to make timely payments, avoid fees and gain insight into their own spending
Banks were not far behind in introducing proprietary Automated Banking Assistants (ABAs), their reasoning being manifold. Good in-house chatbots would reduce the reliance on outside party apps, be safer, quicker, and give the bank more control on their interactions with customers. In addition, switching customers to automated advisors will help banks lower customer service costs.”
Overview provided by Tim Sloane, VP, Payments Innovation at Mercator Advisory Group.