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How Generative AI Can Reignite Customer Relationships for Banks
AI & MI BFSI

How Generative AI Can Reignite Customer Relationships for Banks

By Rajarshi November 06, 2023 - 135 views

The influence of generative AI in banking has reached profound levels in recent times. The implementation of AI and banking customer experiences today go hand in hand. There is a school of thought that generative AI can reignite and revitalize customer relationships in banking. 

Early adopters of generative AI will naturally benefit from its productivity boosts and its impact on customer relationships. Accenture has reported how 90% of working hours in the banking sector may be eventually influenced by LLMs or large language models.

54 % of work timings, as per this report, has immense potential for automation via AI in the future. 30% of employee productivity benefits may also be witnessed by the sector by 2028. Generative AI can influence almost all sectors and aspects of the banking industry. Here’s looking at the same in more detail. 

Advantages of Generative AI in Banking 

Here is how customer relationships in banking get a boost through AI-powered customer engagement and other benefits of generative AI models. 

  • Better service and front office operations – With generative AI, banks can take proactive steps towards reigniting customer relationships. They can do this by tapping customer intelligence to interpret the purposes of customers and their preferences swiftly. This will enhance interactions across channels while delivering various insights that emphasize building these relationships in a better manner. Generative AI, for instance, helps support advisors and relationship managers with personalized and better insights. This naturally improves relationships with customers. Contact centres and agents can also act faster on customer queries through automated notes and enable better experiences. 
  • Superior marketing initiatives – Along with AI-powered customer engagement, there is another benefit that banks get. There is a deep-rooted link between generative AI and banking customer experiences. Banks can scale up their marketing efforts with insight-driven hyper-personalization. Every experience is customized for every individual customer through audio, text, and visual channels. Personalized messaging will also help banks deliver suitable products/services to customers at suitable times. This will naturally enhance customer relationships in banking. 
  • Improved operations – Customer experiences can also be enhanced considerably through better generative AI-based solutions for streamlining operational procedures. These cover consumer information and notifications, knowledge management, controls, KYC, handling complaints, and more such vital tasks.  It will enable better KYC operations along with helping users access information much faster than before. 
  • Improved data management – Banks can deploy generative AI for filling up information gaps automatically throughout their product lineage, definitions, and even other metadata. They can also manage in-house and customer data better with the latter being leveraged for actionable insights and better decision-making. Real data can also be used for training generative neural networks or GNNs and this leads to the generation of diverse synthetic data. 

How do Customers Benefit from Generative AI in Banking? 

Generative AI in banking can completely and positively transform customer relationships in banking along with boosting overall engagement levels considerably. Here are some pointers worth noting in this regard. 

  • Offering personalized service and support- Generative AI can enable more personalized service for customers. Agents and customer-facing personnel can get better insights into individual customers. These AI systems can easily analyze transaction histories, spending habits, and social interactions to enable better financial recommendations, advice, guidance, and solutions for customers. 
  • Building improved customer experiences- Developing better customer relationships in banking necessitates the provision of more tailored experiences courtesy of banks. AI-powered virtual assistants and Chatbots can enable the delivery of personalized client support. They can also manage account details, customer inquiries, and financial guidance, along with assisting throughout multiple transactions. Generative AI models can enable better customer engagement and service through the replication of genuine human conversations and understanding client needs and intentions better. 
  • Data-based financial recommendations- Generative AI in banking analyzes huge data volumes from the client’s end. This includes spending patterns and trends, transaction histories, investment preferences, and more. This information can be leveraged to offer customized financial inputs and advice. Suggestions and recommendations may encompass personalized investment strategies, plans to manage debt, and advice on budgeting and savings alike. Banks may also leverage AI to provide highly relevant and useful financial data to their customers. This helps them make better decisions as a result. 

It is not just about serving customers better. Banks also get several other advantages of using generative AI. They can apply AI and neuroscience-based Gamification to match the cognitive and emotional capabilities of aspirants with job profiles in the company. Using analytics can enable better candidates who are the right fit for banking roles in a more competitive and specialized environment. 

At the same time, generative AI systems can also go a long way towards enabling superior employee training and retention. They can analyze employee data to predict future attrition rates and recommend steps for better talent retention. With high turnover costs in the banking sector, these insights will be hugely valuable for most entities.

Data quality, of course, is a key cornerstone behind the successful implementation of these applications and also the algorithms used by banks. Hence, there is a growing need to invest in the right AI and analytics talent in order to leverage generative AI in banking to the best possible extent. 

FAQs

How can generative AI enhance the personalization of banking services for customers?

Generative AI is crucial in enhancing banking service personalisation levels for customers. It helps banks suggest the right products/services to customers based on their preferences and needs. It also helps customers get individualized solutions and assistance from support teams. 


What role does generative AI play in improving the customer experience in the banking industry?

Generative AI plays a major role in enhancing customer experiences in the banking sector. It enables personalized recommendations and advice, along with customized service and support. It helps Chatbots and other tools respond faster to customer inquiries, replicating human conversations and understanding customer intent better. 

How can banks use generative AI to predict and address customer needs proactively?

Banks can leverage generative AI to forecast customer needs better, based on an analysis of their spending trends, transaction history, and preferences. They can address these needs swiftly and at the right time based on these customer insights. 

What are the potential benefits of leveraging generative AI to reignite customer relationships in the banking sector?

There are several potential benefits of leveraging generative AI for enhancing customer relationships in the banking industry. These include improved customer experiences and engagement, quicker resolutions of customer problems, personalized customer solutions and recommendations, and more.

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