Published on May 22nd, 2019 | by Paul Morris0
5 impacts of AI in Financial Services
I’ve spoken at/ been involved in a few AI conferences previously and have taken much from the presentations and discussions.
…For this post I’m focusing on the top 5 impacts of Artificial Intelligence (AI) to the future of Financial Services:
1/ customer service
KPMG have published research around AI making ‘Banking invisible’ where ‘enlightened virtual assistants’ replace employees at all points of customer interaction. I just don’t buy this vision for the here and now though.
…However we will most certainly see financial institutions, and consumers, pushing for digital adoption to enable more seamless customer comms e.g in the area of virtual assistants we will see adoption of tech such as IBM Watson, UBS has adopted Amazon’s Alexa assistant on customer service duty and several other financial institutions are investigating CUI’s through natural language conversations
Other financial service companies are already innovating in the hear and now via voice AI including insurance quotes (e.g Liberty Mutual), insurance advice (e.g Insurance Advisor) and Insurance Queries (e.g Farmers Insurance)
There will still be a place for non AI customer service though (phone, email, text, etc) and some good innovation in existing social channels e.g. Dutch Insurer Ditzo who have partnered with WhatsApp for claims allowing customers to ask questions about their insurance via the messaging app and those using digital video streaming to enable car insurance claims such as by Future Generali in India and many others globally
Trading is a key area being impacted in the short-medium term by AI.
3/ Fraud Detection
Fraud detection is another area that is being positively impacted by AI in the short-medium term.
Citi Ventures arm, has made a strategic investment in Feedzai, a data science company focused on real-time fraud detection, HSBC is using AI to detect fraud, money laundering and terrorist funding whilst the likes of Morgan Stanley are using AI for fraud detection also.
4/ Risk & ROI modelling
AI is proving useful in helping Financial Services businesses run more efficiently in areas such as marketing ROI modelling and also innovating in areas such as Risk management
Whether that be via internal test & learn ROI marketing activity or using the likes of Jay Wing’s attribution and ROI tool; the future for ROI aiding marketers, risk and pricing teams to make better decisions is now.
Leading on from the above; AI is supporting in other areas of Marketing such as improved targeting and customer engagement with everything from AI targeting in WhatsApp messaging TO programmatic display advertising targeting those most likely to be in the research > buy stage for financial products/ services TO historic ‘dumb’ ATL advertising and making it smarter e.g digital billboard’s in London’s Piccadilly Circus