The Intersection of Financial Institutions and Technology Leaders

AI’s Impact on Data Management and the Customer Experience

By David Benskin

Artificial Intelligence (AI) has transformed the financial services landscape and will continue to have long-term impacts on the banking industry. This technology has already had significant effects on data management, enhancing the way banks handle, analyze and extract insights from vast amounts of data. Bankers that embrace AI technology to increase their data efficiency can tailor customer experiences while bolstering growth strategies.

Banks today have access to extensive data that is complex and time-consuming to analyze. AI-powered software helps bankers achieve quick analysis, pattern recognition and extraction of valuable insights. AI technologies can simplify data operations and manage large-scale datasets more efficiently, overcoming the limitations of traditional data analysis methods and delivering faster insights necessary for sustaining growth.

AI surpasses human analysis capabilities by processing information more quickly and uncovering relationships in data that bankers may miss. Clustering similar data points together to identify groupings within account holder data allows AI technology to identify complex patterns and trends within data. These comprehensive, accurate insights enable bankers to segment customers and create meaningful categories for marketing and cross-selling.

AI systems’ capability for real-time data analysis also provides immediate insights, offering bankers the information they need to better anticipate customer needs. AI models can conduct predictive analysis using historical data to forecast future trends and outcomes. Accessing both current and forward-looking data insights empowers bankers to leverage a more holistic view of their institution and craft a comprehensive analysis to inform their decision-making.

Banks’ ability to leverage data and garner meaningful insights goes hand in hand with driving business growth and customer relationship success. Better data management has profound impacts on the customer experience: it can lead to more personalization capabilities and streamlined processes such as faster loan approvals, account openings and fund transfers.

Effective data collection and analysis ultimately allow bankers to better understand each customer’s needs and financial behavior. This information enables the institution to offer personalized product recommendations, tailored financial advice and customized services that align with each customer’s unique profile. Delivering targeted promotions addressing customers’ needs can create greater opportunities for bankers to strengthen relationships and drive business growth.

Comprehensive data management also ensures bankers and their teams can access detailed records of customer interactions and histories, including any complaints or issues. Having context on each customer empowers support representatives to quickly understand account holders’ needs and deliver relevant solutions based on their financial history. This means that questions or issues can be addressed promptly through single interactions, allowing banks to increase customer satisfaction and better meet expectations.

Account holders want the ability to choose from multiple communication channels when interacting with their bank, whether through online banking, mobile apps or in-person exchanges. Effective data management guarantees a seamless experience across each channel and enables customers to transition between outlets without experiencing disruptions or losing context. Data efficiency also facilitates the deployment of AI-powered virtual assistants equipped with customer backgrounds to address outreach and queries on a 24/7 basis, enhancing the institution’s accessibility and responsiveness.

Some bankers may have concerns that AI-powered technology threatens their roles. AI will not replace bankers — it will augment their capabilities, furthering their efficiency and improving their ability to prioritize higher-value responsibilities requiring their attention and expertise.

Human judgment remains essential for interpreting results and providing customized financial guidance. AI can handle routine tasks, process automation and data analysis, as well as any additional activities entailing little manual intervention. Meanwhile, bankers receive the time they need to focus on addressing complex customer needs, building meaningful relationships with empathy and understanding and planning strategic activities that ultimately support the institution’s long-term success.

AI-powered assistants can take over in providing automated financial advice based on customers’ profiles. However, bankers must leverage those tools to interpret those insights, deliver more comprehensive, tailored financial planning and cultivate stronger customer connections.

Embracing AI also allows bankers to both stay on top of the changing market with real-time data analysis and respond quickly to evolving customer needs with a greater understanding. Banks that stay informed on the needs of their customers and market trends will be better positioned to retain competitive agility and implement innovative financial products and services that have meaningful impacts within the institution and the industry as a whole.

By harnessing the power of AI, bankers can unlock deeper data-driven insights, automate time-consuming tasks, deliver more tailored banking experiences and gain a competitive edge in the fast-paced market.

David Benskin is the founder and CEO of Wealth Access, Inc., a Nashville-based financial technology company launched in 2011. Under his leadership, Wealth Access empowers financial institutions to unify their account holder data to generate deep insights that power hyper-personalized banking and wealth management experiences.