Banks are already strengthening customer relationships and lowering costs by using artificial intelligence to guide customer engagement. Success requires that capability stacks include the right decision elements. The current transition to digital channels creates an opportunity for banks to serve more customers, expand market share, and increase revenue at a lower cost.
Crucially, banks that pursue this opportunity also can access the bigger, richer data sets required to fuel analytics and machine learning decision engines. Deployed at scale, these decision-making capabilities powered by artificial intelligence can give the bank a major competitive edge by generating significant incremental value for customers, and the bank.
Banks that leverage machine learning models to determine in near real-time the best way to engage with each customer have the potential to increase value in four ways:
To lower credit risks, banks can adopt more sophisticated screening of prospective customers and early detection of behaviors that signal higher risk of default and fraud.
Banks gain an edge by creating superior customer experiences with end-to-end automation and using advanced analytics to craft highly personalized messages at each step of the customer acquisition journey.
Banks can increase the lifetime value (LTV) of customers by engaging with them continuously and intelligently to strengthen each relationship across diverse products and services.
Banks can lower costs by automating as fully as possible document processing, review, and decision making, particularly in acquisition and servicing.
To remain competitive, banks must engage customers with highly personalized and timely content to build loyalty. Personalized offers with tailored communication delivered at the right time through the customer’s preferred channel can help banks maximize the lifetime value of each customer relationship and reinforce the organization’s market leadership.
To achieve these benefits, banks must build AI-powered decision capabilities fueled by a rich mixture of internal and external data and augmented by technologies. To learn more about how Arcana can help your financial organization leverage the power of data and analytics, talk to one of our analytics experts today.