Read the full article in FinTech Alliance here.
AI has become more integrated in day-to-day life, as a result impacting how traditional banks are running. AI gives companies the chance to automate processes that would have previously taken human staff hours to complete, giving them the opportunity to make better use of their time or to work on more creative projects. The innovative technology also allows banks to be stay competitive as new businesses and offerings come in, as well as customer expectations rising.
Manoj Mistry, Managing Director of international banking network IBOS Association also extolls the benefits of AI but warns it can become a threat if large incumbents rest on their laurels.“AI technologies can dramatically improve banks’ ability to achieve several key objectives: higher profits, customer personalisation, unique omnichannel experiences, and rapid cycles of innovation,” says Mistry.
He argues that AI technologies do have the ability to replace humans – but this needn’t be seen as a threat. “Facilitated by reduced costs in data storage and processing, increased connectivity and access, and rapid technological advances, deploying AI technologies invariably results in higher automation. When deployed with appropriate risk mitigation, AI technologies routinely surpass human decision making in speed and accuracy.”
Mistry adds that if banks do not make AI central to their core operational strategy, they risk being surpassed by competitors – and losing their existing customer base. “Compared to the new challenger banks, many traditional banks still lag behind in their adoption of AI systems. They often struggle to move from the experimentation phase around select use cases for AI to scaling AI technologies across every facet of their operation.In order to remain relevant and to meet future customer demand, traditional banks therefore need to deploy AI technologies at scale. To achieve this, a holistic transformation is needed right across their organisational structures.”