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?