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How Banks Protect Themselves From the Unknown

October 12, 2022 By Zachary Lukasiewicz
  • Zachary Lukasiewicz
  • October 12, 2022

The banking industry is at a crossroads. Customers are demanding more from their banks than ever before, but legacy systems make it difficult for banks to keep up.

Meanwhile, the rise of AI has given new players an opportunity to enter the industry and compete with traditional banks by offering clients better technology that’s both faster and more intuitive than what was available just a few years ago.

Banks need to offer customers the best experience possible if they want to stay relevant in this new era of financial technology innovation or risk losing business to other companies who can offer better digital experiences.

 

Banking has always been a safe place. 

Financial institutions have always protected themselves against the unknown by insulating their tech and other assets in systems that are difficult to penetrate.

You are a bank. You want to be safe and secure, because you don’t want to take risks. You have always been a safe place for investors, storing their money in safe vehicles that are difficult to penetrate by fraud or other problems. In this way, banks have always been well protected from the unknown.

However, as we enter into an era where new technologies like AI and blockchain can provide more efficient ways for individuals and companies to do business with each other without going through banks at all; it is inevitable that many large financial institutions will move towards becoming more competitive in response to this threat through dramatic shifts driven by new developed technology known as advanced AI.

The changes brought about by these advances will force traditional banking institutions into doing things they never thought possible before now – embracing change rather than running away from it.

 

AI has changed what is possible.

In the past, banks were limited in their ability to deliver services to customers because of the difficulty in interpreting and processing vast amounts of data. This made it difficult for banks to offer customized products and services that could be tailored to the individual needs of each customer.

However, advances in artificial intelligence will allow banks to gain a complete understanding of their customers’ financial needs by collecting data across multiple domains such as transaction history, account balances, spending patterns and more—and then use this information to make real-time offers that are relevant for each individual customer.

AI is transforming banking by changing how they operate at every level: from providing greater insights into customer behavior or improving operational efficiencies through automation (such as chatbots) all the way up through strategic decision making processes like risk management or sales forecasting processes which require complex models based on historical data sets now being replaced with AI systems capable of learning directly from experience without needing human intervention.

 

AI’s greatest strength is its ability to learn, process vast amounts of new data, and make consistently intelligent decisions faster than humans can.

AI’s greatest strength is its ability to learn, process vast amounts of new data, and make consistently intelligent decisions faster than humans can. AI is also more efficient than humans because it doesn’t require sleep or breaks and can work all day every day.

The problem with mobile banking and traditional IVR systems is that they aren’t equipped to interpret the nuances of a customer’s intent because most aren’t powered by artificial intelligence. Traditional IVR systems can only read predetermined data inputs, so they don’t know what the person on the other end of the phone is trying to communicate. 

Mobile apps are even worse: users are limited to a few choices provided by an interface designer. If you want anything more complicated than that, you’ll have to call or visit your local branch—which means losing control over your time and maybe even having to wait in line for hours before being able to complete a simple task like transferring money from one account into another. 

But there is hope – advances in artificial intelligence mean that soon it will be possible for banks’ online banking portals (and even their apps) to understand users’ needs without any extra effort on their part at all.

 

The tools banks use today fall into two categories: mobile apps and archaic IVR systems– neither of which is a good option for customers because both fail to understand natural language.

You may have heard about the problem with mobile banking and traditional IVR systems. They’re not equipped to interpret the nuances of a customer’s intent because most aren’t powered by artificial intelligence. Mobile apps don’t help you find things like “a Bank of America ATM near me” or let you say, “I want to deposit this check,” or even just speak in plain English and get an answer back from your bank quickly.

Until recently, AI was difficult to implement. LinkLive is making artificial intelligence more cost effective for financial institutions to develop and maintain over time, which makes banks and credit unions more competitive in attracting, engaging, and retaining their customer base.

 

Banks will have to offer customers more than outdated tech if they want to keep their business.

Banks are looking for a “human touch” instead of outdated technology.

Couple that with the fact that people want convenience and speed from their financial institutions and you have a recipe for disaster.

Banks will lose out on customers if they can’t provide these services in an efficient manner.

So what does this mean for the future of banking? It’s hard to say. But one thing is certain: change is coming, and it will be fast.

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