Banks gain a competitive edge with AI

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How can banks drive rapid impact and maintain their competitive edge in a volatile market?

Retail and Corporate banks, alongside Customer and Marketing teams, must navigate a persistently evolving industry which includes new trends and unpredictable customer behaviors. AI technologies provide financial institutions with the tools they need to reach new customer segments, develop new business opportunities, and achieve significant outcomes.

New customer behaviors

How can you adapt to new customer behaviors if you can’t identify them?

By combining external data such as census, geospatial, demographic, and mobility with a bank’s internal datasets, previously hidden patterns come to light.

  • An increase in digital banking usage could be attributed to increased home isolation resulting in a greater reliance on technology. Banks can use these insights to launch new digital services and expand existing ones.
  • A sudden rise in loan payment extensions and savings accounts may shed light on new opportunities, such as more flexible loan criteria and long-term savings plans.
  • Higher call volumes to Customer Service Centers are expected during times of crisis and amid bank branch closures. Customer Support staff can use this as an opportunity to identify cross-sell and upsell potential.

AI-powered solutions can also identify vulnerable customers and those who “fall through the cracks”, ie. people who may not fit into the general mold of traditional financial criteria.

These discoveries help banks customize their product offerings and personalize digital services, such as loyalty programs, P2P payments, personal or small business loan approvals, expanded mobile banking platforms, and more.

New business opportunities

AI technology can create new avenues of revenue, products, and services where none existed before.

By fully leveraging detailed transactional data with bureau and credit datasets, AI enriches it with external data, uncovering previously hidden patterns and correlations driving credit risk. This gives banks a holistic view of customer behavior. Sales and Marketing teams can use these insights to cross-sell/upsell and drive significant market growth.

AI doesn’t reinvent the wheel

One of the most powerful elements of AI is the ability to find correlations in existing data.

So there’s no need for data teams to reinvent the wheel; they can spot emerging trends in previously unexplored areas without the need to rebuild or create new models, saving crucial time and manpower.

Traditional models can no longer keep up with the rapid pace of change. Incredibly, the last 2 months of data is proving more valuable than the last 2 years’ worth. AI technology has the dynamic capability to find hidden patterns buried deep in data, even when such data is scarce.

Speed to insights is critical

Drawing new insights from a wide range of datasets helps banks achieve positive results, but all the insights in the world won’t matter if a company can’t move quickly to implementation and operationalization. The speed at which this happens is absolutely critical.

SparkBeyond is uniquely positioned to capture unique insights quickly and efficiently, driving powerful impact for financial institutions. The platform connects the dots between disparate events and complex data sources, and generates millions of ideas in minutes that empower banks with actionable insights they can use now. What takes a human analyst or Data Science team weeks or months, SparkBeyond can achieve in a matter of hours or even minutes.

We help banks disrupt the Financial Services industry and transform them into advanced digital enterprises.

 

To learn more, register for one of our upcoming webinars:

 

July 22nd: For digital and data leaders: 

Adapting to new customer behaviors in Banking with AI

July 29th: For credit, marketing, and customer teams: 

Outperform in Credit Risk, Loyalty, and Cross-sell/Upsell

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