THE FINTECH INTERVIEW
banking marketplace will enable the small business owner to easily explore diverse financing options and customised solutions . And , because this customer is more entrenched in the system due to all of the third-party subscriptions they ’ ll be utilising , banks will have more data and information to make quicker financing decisions for the SMB customer .
Banks are competing with digital-only banks and technology giants that have begun to dabble in financial services . The more they can embrace fintech to create more connections for customers to third-party service providers , the better poised they are to win out over competitors .
Q . AI in banking is the current tech trend taking FIs by storm . Where is it being widely applied and adopted – and where is there still conservatism as to its uses ?
» AI has proven to be an incredibly powerful tool across a variety of industries , and the banking sector is certainly no exception . For many , Gen AI in particular has been widely adopted on the front end in the form of chatbots to improve customer service . We ’ ve also seen AI used to enhance antifraud initiatives .
An especially impactful area AI has been improving across the banking industry , however , has been hyper-personalisation . Today ’ s banking customer has become accustomed to tailored recommendations based on patterns found in their personal data ( for example , Netflix ), and banks have leveraged AI to mirror this experience for their clients .
For additional context into AI ’ s growing role among banking clients , Amdocs ’ 2023 Personal Banking Survey found that 53 % of respondents are interested in receiving customised , real-time financial recommendations generated by AI – even if it requires giving banks more access to personal information .
Like any new technology , there are of course aspects that can hinder adoption . Many financial institutions have expressed concerns over transparency , bias and ethical considerations when it comes to AI performing core banking functions .
As noted in President Biden ’ s recent Executive Order on AI , there are also regulatory and data privacy factors slowing adoption and implementation .
16 February 2024