Artificial intelligence, big opportunity for financial institutions

As we enter an age of service enhanced by artificial intelligence, financial institutions in particular must look to capitalize on the opportunities presented to offer better experiences. The good news is that banks and credit unions are well positioned to do so because of the wealth of personal data they have access to, which serves as the fuel to drive the AI engine.

AI’s potential for personalizing services is one important way financial institutions can differentiate themselves from the competition in the fintech industry. By using the rich data at their fingertips, banks and credit unions can create a more personalized experience, ranging from smarter recommendations to automated alerts and services. For example, if a consumer experiences cash flow issues due to an unusual income stream structure, such as monthly or quarterly paychecks, the AI engine could recommend setting up a home equity line of credit (HELOC) or savings account with auto transfers that ensure the consumer has funds on hand to pay important bills on time and avoid potential late payments or overdrafts.

Many consumers already use voice recognition software in their everyday lives, and are familiar with virtual assistants such as Alexa, Siri, Cortana and Google Assistant. These assistants use a combination of voice recognition software, which translates human speech into data, and voice interaction, which is powered by AI applications.

In addition to voice interaction, AI can also be deployed in the form of intelligent chatbot technology. Currently many major brands are helping consumers find flattering clothing with intelligent recommendations, order their “usual” or even learn a second language, all in real-time. However, financial institutions have yet to take advantage of the full potential of this powerful technology.

Financial institutions should also keep a close eye on the automotive industry as cars become smarter and integrate with payments. A self-driving car could easily order, pick up and pay for groceries, before chauffeuring a consumer home from work. Similarly, by integrating with a mobile wallet, these autonomous vehicles could run errands and pay for services, such as picking up lunch or dry cleaning. On a commute home from work, consumers could carry on an intelligent conversation with a smart car’s voice assistant about their monthly spending and schedule payments.

Currently in use, wearable technology has been introduced to the financial industry recently with a limited number of smartwatch applications. Financial institutions have an opportunity to explore the practical uses of this technology through the addition of AI.

As financial institutions look forward into the future, artificial intelligence will prove to be crucial in transforming the industry. Instead of trying to make these strides forward alone, or relying on legacy partners, financial institutions should be looking into innovative partners for help as they seek to build their future successes on investments in artificial intelligence.

These partners will enable FIs to leapfrog the competition and transform each interaction with consumers into a “do it for me” experience, no matter the device. Banks and credit unions must embrace fintech partners as the path to the age of artificial intelligence.