Over several decades, banks have continually adapted the latest technology innovations to redefine how customers interact with them. Prioritising customer ease, banks introduced ATMs, electronic card-based payments and eventually came 24/7 online banking, followed by the spread of mobile-based “banking on the go”.
AI-powered machines are tailoring recommendations of digital content to individual tastes and preferences, designing clothing lines for fashion retailers, and even beginning to surpass experienced doctors in detecting signs of cancer.
For global banking, McKinsey estimates that AI technologies could potentially deliver up to $1 trillion of additional value each year. Many banks, however, have struggled to move from experimentation around select use cases to scaling AI technologies across the organization. Reasons include the lack of a clear strategy for AI, an inflexible and investment-starved technology core, fragmented data assets, and outmoded operating models that hamper collaboration between business and technology teams.
What is more, several trends in digital engagement have accelerated during the COVID-19 pandemic, and big-tech companies are looking to enter financial services as the next adjacency.
Ankit Ratan, cofounder of Signzy says, “To compete successfully and thrive in the current scenario, incumbent banks must become “AI-first” institutions, adopting AI technologies as the foundation for new value propositions and distinctive customer experiences and no-code platforms could help them achieve this goal.”
Few would disagree that we’re now in the AI-powered digital age, facilitated by falling costs for data storage and processing, increasing access and connectivity for all, and rapid advances in AI technologies. These technologies can lead to higher automation and, when deployed after controlling for risks, can often improve upon human decision making in terms of both speed and accuracy.
How No-Code AI Can Better Customer Experience
Customer experience transformation is held back by digital skill shortfalls in the workforce. Almost 80% of banking CEOs in a PwC survey saw this as a key challenge to digital transformation.
Dynamic market and regulation landscapes need adaptability at speed, but technology investment is slow in traditional banks. According to a recent Oliver Wyman study, traditional banks take three to six months to launch a new feature, while challenger digital banks do it in just about a couple of weeks.
Legacy systems that don’t integrate well with modern applications, hinder digital transformation efforts, consuming 60-80% of technology budgets for operations and maintenance.
AI’s biggest impact undoubtedly will be to transform customer service by making it automated, fast and hassle-free. Many leading banks are already leveraging AI to better customer interaction using chatbots, throw accurate recommendations using recommendation engines and in fraud detection using machine learning algorithms.
Digital transformation has erupted at a rapid pace especially with the pandemic crisis making it difficult to execute daily operations on a physical basis. Rapid transformation of banking operations in AI is no joke, and hence with no-code AI one could say that the process can certainly move along faster. While in its infancy no-code AI still leaves a lot of room for skepticism, one can certainly agree to it that this is the way to banking – now and in the future!