In brief

In brief

  • The pandemic forced banks to find new ways to operate at radically efficient levels.
  • AI can open a new world of possibilities, promising up to 2–5X increase in transaction value at existing headcount.
  • While most banks are on-board about the exponential value AI can drive, less than 5 percent are using it in an industrialized way.
  • Banks that put in place the right platform, the right tools and the right mindset will be best placed to succeed in a fast-changing future.

How banks can boost productivity and elevate customer experience through AI to accelerate growth

Humans have repeatedly invented newer machines to improve output. Think how bicycles and then automobiles magnified the distance and speed with which humans could travel, while radically changing the experience. These machines were based on the general purpose technologies of wheels and internal combustion engine.

Artificial Intelligence (AI) is the latest general purpose technology that is being used to redefine the banking experience and business economics like the computer and Internet did before. The possibilities are both endless and already limitedly proven. For example, think about how AI is revolutionizing the way we interact with machines, it is changing the onus of understanding from humans to machines. Earlier, we had to know where to go, what to click to accomplish a particular task and now you can probably just ask Google or Siri or Alexa. This will transform the customer adoption and experience landscape. Similarly, AI based bots can enable a thousand small conveniences for your customers like one-click repeat payments, or for your employees like build a draft credit appraisal memo. These bots are already being deployed for some common use cases across banks, like chat bots, and across industries, like robotic vacuum cleaners.

Whether the recent pandemic has necessitated a bank to ride the tailwinds of digital acceleration or dramatically improve their productivity to survive, AI offers a compelling proposition. Like any technology leap, it pushes the Production Possibility Frontier out, allowing banks to simultaneously improve experience and business economics, while also improving control and compliance. It helps banks accelerate growth, both by removing bottlenecks to scale and by driving a differentiated experience that can drive virality in demand. Our client diagnostics have repeatedly shown that using AI-based solutions, banks can achieve a 2-5X increase in the volume of interactions or transactions with the same headcount. Think about it—if banks could drive that 2-5X volume with their current branch or office and people infrastructure, wouldn’t their Cost Income Ratio land sub 30 percent?

Download the PDF report to read the full article or listen to the audiobook below.

From driving cars to writing news articles with no human intervention, AI is revolutionizing industries and pushing the production possibility frontier further.

Pranav Arora

Managing Director Financial Services and Lead – Applied Intelligence, Accenture in India


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