In the midst of the digital age, the technological revolution in European banking is underway. At the heart of this transformation lies Artificial Intelligence (AI), a technology that is revolutionizing the way financial institutions operate and provide services to their customers.
According to data from the European Banking Authority, 83% of European banks are already using Artificial Intelligence, and it is expected that by 2025, all of them will have implemented AI-based solutions.
Diversity of Artificial Intelligence Applications
At Plusnet Solutions, we have been in the customer service and CX sector for over 20 years, and we work daily to implement AI-based solutions in various types of companies.
In the case of banking, one of the most notable features that AI offers is its diversity of applications, as well as the variety of purposes and benefits it provides to institutions. From our experience, we can determine that these benefits are primarily focused on three major areas:
- Improving the customer experience through the use of Conversational Assistants: One of the standout uses of AI is the implementation of virtual assistants and chatbots that provide customer support 24/7. They offer personalized real-time responses, enhancing the experience and expediting inquiries and transactions. AI is also used to better understand customer profiles and needs and even anticipate individual customer needs and offer investment advice, for example.
- Security and fraud detection through AI & Biometrics: AI-based solutions, such as voice biometrics, allow the unique biometric characteristics of each user to be used to verify their identity when performing certain banking operations. We’ve previously discussed this technology and its benefits in our blog articles and how we implement it in our clients’ systems, including in the insurance sector. Voice authentication in banking not only reduces back-office costs for authenticating customers but also provides a better customer experience by making the identification process much more convenient. As banks increasingly rely on AI, they must also prioritize cybersecurity. The exposure to higher cyber risk is a concern, and ensuring high levels of security remains essential.
- Regulatory compliance and risk control: AI has proven to be a valuable tool for reducing the costs associated with regulatory compliance and fraud detection, from monitoring customer behavior to preventing suspicious activities. AI solutions are also used in banking to optimize credit risk assessments of customers, streamlining modeling and analysis processes.
Transforming Virtual Assistants into Intelligent Digital Assistants
One of the latest innovations in Conversational Artificial Intelligence in banking is the evolution of virtual conversational assistants, now referred to as “intelligent digital assistants.” The combination of innovative technologies like Conversational AI and Generative AI has played a crucial role in this transformation.
These advanced assistants go beyond merely answering frequently asked questions; they can understand a customer’s financial history and behavioral patterns, enabling institutions to address each user’s specific needs and offer personalized services or products. Additionally, thanks to their ability to process natural language (NLP), these virtual assistants can maintain fluid and context-aware conversations, providing precise and comprehensive responses to complex questions.
In summary, banks now have AI-driven banking experts, and in conjunction with the power of Speech Analytics, they can comprehend emotions and moods and respond accordingly.
At Plusnet Solutions, we have already had the opportunity to work on implementing intelligent digital assistants within the systems of major clients, enabling them to streamline their internal processes while still providing personalized real-time assistance to both customers and banking employees.
Our Outlook on the Banking Sector’s Technological Future
From our perspective, enriched by working with large clients and leading technology solution providers, we can confirm that the adoption of AI in banking (which has been accelerating in the last year) has two significant implications for the sector’s future:
- Necessary Investments: Technology is advancing rapidly, and to maintain the competitive advantages offered by these solutions in the future, banks must proactively invest in implementing this technology in their customer service systems. Users are already demanding these types of experiences, so transforming the Contact Center and Customer Service systems into Intelligent Centers will be essential to remain competitive in an ever-evolving market.
- Automation and Organizational Change in Banking: AI is already changing how banks conduct their business, and an increasing number of digital banks are entering the sector with solutions entirely powered by AI technologies. From automating tedious processes (such as document verification and credit assessment) to the service provided to users, all are candidates to benefit from AI.
In summary, AI is transforming banking in several significant ways, from improving the customer experience to automating processes and strengthening security. The AI revolution is underway, so at Plusnet Solutions, we are eager to help any institution prepare for and embrace this new reality: banks that embrace this change are well-positioned to lead the next era of banking.
Feeling like not continuing to read? In this video, we tell you everything about Conversational Artificial Intelligence and our work with this technology. Don’t miss it!