Singapore, Nov 2: Artificial intelligence will deliver personalised experiences and reshape the world of banking as we know it, according to a new report from leading SaaS banking platform Mambu and Google Cloud.
Driving this change is a combination of disruptive forces in the market.
“The report shows the world that banks were originally created to serve no longer exists. Historically built to last, today banks need to be built to change. If traditional players want to reposition themselves as lifestyle partners, in tune with the modern banking needs of their customers, then they must evolve rapidly – and without fear,” Eugene Danilkis, CEO at Mambu said.
The report shows that the pandemic has increased consumer demand for always on, personalised digital and mobile-first financial services.
Unlike 20 years ago, traditional banks are no longer the go-to for those looking to move or manage their money.
With better access to cloud services and increasing competition from a new wave of fintechs and non-traditional players, incumbent banks are under threat as consumers turn to neo banks and digital challengers in search of a better customer experience and utility-led services.
“Key to this will be their embrace of AI technology which has broad ranging applications from fraud prevention and risk management to delivering personalised customer experiences and driving efficiencies through greater automation.
“But banks must act fast if they want to avoid getting left behind. Only by leveraging the capabilities of AI and cloud technologies will they be able to reimagine the customer experience and tap into new revenue streams in a competitive market.”
“As the financial services industry continues to digitally transform, there is an increased need for solutions that help businesses deliver personalised experiences to customers,” Joachim Wuest, Director, Financial Services Industry, Google Cloud said.
“We look forward to partnering with groups like Mambu to bring AI-powered solutions to banking organisations as they move along their digital transformation journeys.”
The report points to changing regulation, such as the introduction of open banking and PSD2, as forces accelerating the disintermediation of traditional banking providers.
With dedicated regulation now emerging for fintechs and digital banks in some jurisdictions, it’s a case of adapt or die for incumbent players.
But banks have one asset on their side – data. With around a billion credit card transactions every day, banks have access to one of the largest volumes of customer data of any industry.
Using AI, banks can harness this information to unlock unparalleled insights and growth.
McKinsey estimates that AI technologies could deliver up to $1 trillion of additional value each year for the global banking industry, combining a deep understanding of customer needs with the composable cloud architecture to roll out hyper-personalised services at scale.
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