Here, artificial intelligence tools offer a way to bridge this gap using a “prediction model factory” approach: By leveraging extensive customer data and their historical relationships with banking experts, it’s possible to generate limited-scope product offers — such as credit card or investment options — that have a higher likelihood of conversion.
Banks Can Use Chatbots to Collect and Deliver Customer Data
There’s also a growing use case for AI-driven chatbots in banking. While this isn’t a new approach — voice recognition bots that can answer simple questions have been around for several years — more robust chatbot solutions offer a new advantage: in-depth data collection.
As noted by Forbes, although banks have substantive amounts of customer data, many don’t have the “right” data — the specific, focused information they need to make relevant and timely recommendations. This is the benefit of next-generation bots: the ability to collect data about the customer experience end-to-end, then provide that data to customer service agents on demand.
In practice, this shifts the position of chatbots along the functional financial spectrum. By moving these bots down the data stream, they can do more than act as front-end customer connections; they can help reframe consumer conversations with live human agents by providing automated, data-driven insights.
The Infrastructure Banks Need to Take Advantage of Analytics
While both NBO solutions and predictive bot systems offer the potential to maximize revenue and boost customer engagement, banks need the right IT infrastructure to take advantage.
To optimize for automation, three considerations are critical:
- Increased storage availability. As data volume and variety ramps up, banks need both onsite and cloud-based storage infrastructure capable of keeping pace. Consider the uptick of AI-driven solutions such as natural language processing (NLP) and sentiment analysis used to better understand consumer preferences and priorities. Broader data availability increases accuracy in both cases, meaning banks need agile storage infrastructure that removes potential analytic barriers.
- Improved data defense. Security is also critical in a world of predictive analysis. Banks are no strangers to the need for robust security, but as the nature of collected data shifts from market generalizations to highly specific consumer data sets, there’s an emerging need for security solutions capable of defending data anywhere, anytime and on any platform. Practically speaking, improved data defense drives customer retention. Recent survey data found that consumers expect speedy response from banks with regard to any security risk, with 66 percent saying they would no longer do business if corporate breach response was slow or ineffective.
- Enhanced ITSM. Banks need IT service management (ITSM) solutions that go beyond historic break-fix models to help standardize existing processes, modernize existing practices and find opportunities for innovation. Put simply, enhanced ITSM provides the responsive framework necessary to manage new predictive services and address emerging challenges.
Banks don’t want for data. What they’re often lacking, however, is a way to convert massive data sets into targeted, actionable recommendations for advisers and call center agents. The adoption of automated predictive analytics tools, such as NBO solutions and chatbot systems, paired with robust IT infrastructure can help financial firms capitalize on the true value of in-depth data collection.