Artificial intelligence set to power ‘Bank of the Future’

AI bankingArtificial intelligence will deliver personalised experiences and reshape the world of banking as we know it, according to a report from SaaS banking platform Mambu and Google Cloud 

The ‘Bank of the Future’ whitepaper identifies ‘ubiquitous banking’ as the next frontier in the digital financial revolution, and reveals three building blocks that will enable the future of banking:

Customer-centric strategy – products and services built around the customer for the customer, embedding AI technology to hyper-personalise the user experience

Value-based AI use cases - applications anchored on business value (revenue growth, cost saving or risk reduction) and customer value (customer experience or time to market).

Composable technology architecture – flexible, cloud-based core banking software that enables true “plug and play” functionality to respond to changing customer needs, market dynamics or technology trends.

Driving this change is a combination of disruptive forces in the market. The report shows that the pandemic has increased consumer demand for always on, personalised digital and mobile-first financial services.

With better access to cloud services and increasing competition from a new wave of fintechs and non-traditional players, incumbent banks are under threat as consumers turn to neo banks and digital challengers in search of a better customer experience and utility-led services.

Eugene Danilkis, CEO at Mambu, said, “The report shows the world that banks were originally created to serve no longer exists. Historically built to last, today banks need to be built to change. If traditional players want to reposition themselves as lifestyle partners, in tune with the modern banking needs of their customers, then they must evolve rapidly – and without fear. 

“Key to this will be their embrace of AI technology which has broad ranging applications from fraud prevention and risk management to delivering personalised customer experiences and driving efficiencies through greater automation. But banks must act fast if they want to avoid getting left behind. Only by leveraging the capabilities of AI and cloud technologies will they be able to reimagine the customer experience and tap into new revenue streams in a competitive market.”

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