“Data is to this century what oil was to the last one: a driver of growth and change. Flows of data have created new infrastructure, new businesses, new monopolies, new politics and—crucially—new economics.” – The Economist, May 2017
If you purchase this ‘data is that the new fuel’ analogy like several have, ar|you’re} already aware that firms altogether completely different industries are defrayment (or reaching to spend) a major level of investment in AI initiatives. Giants like Google and Baidu spent $30B and $20B severally on AI in 2016, according to McKinsey, and investment is anticipated to grow by three-hundredths in 2017, according to Forrester. the price of doing nothing is unconscionable. within the same report, Forrester predicts insights-driven firms will ‘steal $1.2B’ from competitors annually by 2020.
What’s motivating such a big amount of firms altogether {different|totally completely different|completely different} industries to leap on the AI bandwagon? we have a tendency to believe one among the first drivers is to deliver essentially different expertise for his or her client – one that focuses on growing the link and meeting the requirements of their customers once and wherever they’re.
Imagine associate degree illustrative client scenario: alphabetic character and Jason understand they’re quickly outgrowing their house with a growing family. Do they appear to shop for a much bigger home, or do they increase the footprint of their existing home?
Figure A: Typical client Interaction with Bank vs. Future AI-Enabled Relationships
Today: The couple during this state of affairs undergo a series of tasks and activities to assist them create their call, starting from doing their own analysis, rebuke friends and family, aiming to completely different websites to seek out rates, home costs and alternative items of information. the primary bit purpose the monetary service company has with this couple is after they finally select a mortgage or home equity line. In alternative words, at the top of that entire client journey.
Tomorrow: Imagine if you because the institution will move up front within the decision-making method. maybe serving as associate degree enabler for serving to to optimize the choice and lay out all the situations. associate degree AI-enabled bank anticipates the requirements of a client and brings a group of tools and information along to empower and inform the client on their journey – not simply at the top of it.
The benefits of re-positioning the role of the bank among this client journey square measure large. The monetary services organization evolves from being a transactional entity to 1 that’s targeted on building the connection and meeting the client wherever they’re (Figure B). In alternative words, you because the monetary services supplier square measure ready to move to a additional strategic, proactive and relevant position.
Figure B: Re-Positioning Your Brand Enabled by AI
So where do you as a business start on this journey? It ultimately begins with what value you want to unlock and a use case that will highlight your organizational aspirations. One way to determine where and how to focus is through the use of an innovation agenda framework that brings together customer, business, and trend analysis to pinpoint opportunities to test.
Once you identify the right use case, you want to enable that experience in the best way possible – allowing for experimentation, quick pivots, and speed to market. We would propose an investment in the foundational technical building blocks that enable faster software production releases, and easier integration of systems and data through APIs. These core capabilities allow you to experiment faster and with greater efficiency. This platform approach also enables more consistent customer touch-points across digital channels. Our Intelligent Bank Platform strategy brings together those building blocks (Figure C) and enables you to start your journey towards becoming a smarter financial institution.
Figure C: Building Blocks for a More Intelligent Bank
So you want to fundamentally change the relationship you have with your customers leveraging AI as a means to re-position your organization at the center of a customer’s experience. How do you go about doing this? Here are 5 things you can do today:
1. Look at your options, but avoid locking yourself into a specific AI vendor solution. The switching cost of a misaligned vendor solution is high.
2. Identify a customer pain point that can benefit from a more proactive relationship with the bank powered by better insights and a suite of relevant third party services.
3. List the services, APIs, and experiences you want to bring together to create the optimal customer journey.
4. Establish a mechanism for experimentation so you can quickly connect to the right services and APIs and test them in the market to get quick learnings.
5. There’s no doubt about it – this is challenging work. But, broken down into manageable parts, it’s easier to get a meaningful win sooner rather than later.
