Room for improvement in how banks are using AI
Despite research revealing the use of artificial intelligence (AI) in the banking sector is on the rise, the same number of organisations (87 percent) exploring the technology admit they are still unaware of how to apply it effectively.
The numbers were revealed in research from data insight specialists Squirro, which found that despite large numbers of banks being unsure of how to deploy AI technology most effectively, 67 percent of banks are actively using the technology today.
“The report has shown that banks are increasingly receptive to using AI and machine learning in their organisation, but it also highlighted what needs to be done to ensure maximum value is gained,” Miguel Rodriguez, VP Customer Success at Squirro, said.
“Insights and Recommendations need to be fully integrated with CRM and core banking systems, to deliver real value to bankers. Used in this way, it can deliver customer and market insights to source new deals, recommend the next best action and improve all manner of other business processes in banking,” he added.
Bigger than Blockchain
In total 87 percent of respondents believed using AI could be useful in multiple areas of business, such as spotting relevant events that could lead to closing a deal with a client as well as 48 percent predicting AI as the biggest disrupter on the horizon, ahead of Cloud and Blockchain.
Additionally, banks admitted that AI would be beneficial to source untapped data and gain insights into customers and clients to anticipate trends ahead of the market and be at the forefront of competition.
“The right AI platform will manage a variety of data sources, both internal and external, be able to analyse the data and provide the relevant information in context of core banking or CRM systems,” Miguel Rodriguez said.
Despite a large number of banks realising the benefits of AI, less than a quarter (17 percent) of banks said they would like AI recommendation’s to be given via mobile; demonstrating the traditional aspects of banking remain as 100 percent admitted to favouring recommendations via email.
The findings were collated by research firm TABB Group, on behalf of Squirro, from 200 banks worldwide.