Generative AI, an advanced technology that enables machines to generate content in response to natural language requests, has emerged as a transformative force in the financial services industry.
Its ability to create human-like text revolutionizes customer interactions, automates processes, and drives innovation. From virtual assistants that provide personalized financial advice to advanced risk models, generative AI is reshaping how financial institutions operate.
Who Does Generative AI Impact at Your FI
Understanding the impact of technology on various roles within a financial institution helps you set your teams up for success as your business evolves. They can harness generative AI’s power to improve operations, deliver superior customer experiences, and gain a competitive edge.
Generative AI will impact the following teams at your FI.
Human Resource Managers
According to recent conversations between McKinsey & Company and HR leaders, generative AI will soon reshape the recruiting process by assisting in talent acquisition, employee training, and onboarding and training employees on HR processes. Additionally, generative AI already automates administrative tasks such as scheduling interviews and processing PTO requests.
Your HR team has opportunities to utilize the technology to analyze employee feedback and sentiment, enhancing performance evaluations and engagement.
Ultimately, this will translate to streamlined processes, improved talent management, and data-driven decisions regarding employee development, resource allocation, and organizational strategies.
Marketing Departments
Your marketing team faces the challenge of maintaining a curated digital experience for your institution amidst the emergence of generative AI; they must ensure that AI-generated content aligns with your brand voice, meets quality standards, and effectively engages your target audience.
However, with careful integration and strategic implementation, generative AI actually enhances your marketing efforts and simplifies content creation processes, allowing your team to focus on higher-level strategies and customer engagement.
Generative AI opens up a world of possibilities for Chief Marketing Officers:
- Campaign Creation: Leverage generative AI to analyze customer data and create highly targeted marketing campaigns with tailored content, recommendations, and offers based on individual customer preferences and behaviors.
- Behavior Analysis: Improve customer targeting and engagement through AI-driven insights. Use generative AI to identify patterns and trends in customer behavior for better segmentation and customer profiling.
- Customer Engagement: Enhance engagement strategies by delivering timely and relevant communications across various channels.
- Team Augmentation: Collaborate with a trusted AI partner with a deep financial services pedigree to develop and introduce AI-powered assistants to support your human teams.
Embrace generative AI’s potential and empower your marketing team to shape compelling narratives that resonate with customers and elevate your institution’s brand presence.
Customer and Member Care Teams
Higher customer satisfaction = higher customer retention and referrals. And this often starts with faster response times, a direct benefit of generative AI.
A recent Salesforce survey showed just that.
“Among respondents who are already using the technology, generative AI has already proven successful — 84% of salespeople using generative AI say it helps increase sales at their organization by enhancing and speeding up customer interactions. Service professionals currently using generative AI agree: 90% report it helps them serve their customers faster.”
Improve customer satisfaction and reduce response times by leveraging generative AI to understand customer motivation and emotion during interactions, fueling empathetic and context-aware responses.
Plus, when you integrate generative, conversational AI technologies with existing infrastructure, your employees can deliver personalized experiences tailored to each user’s finances to drive down operational costs while providing high customer satisfaction.
Technology and Operations Units
Smaller, staff-strapped financial institutions must tap into this vast technology-forward ecosystem as back-office technology and operations units scramble to stay ahead. As generative AI becomes increasingly prevalent across the financial services industry, smaller institutions should adapt to remain relevant and meet evolving customer expectations.
To drive improvement and innovation, technology and operations units can:
- Deploy generative AI to automate repetitive manual tasks, freeing resources for more strategic initiatives.
- Use generative AI to analyze operational data and patterns, identifying bottlenecks and areas for improvement, like assisting in resource allocation and capacity planning through predictive analytics and demand forecasting.
Your technology and operations people will also lead the charge of implementing any generative AI tools. They will benefit from credible, trusted solutions that require minimal onboarding effort and offer full operational rigor.
Risk and Compliance Teams
In 2022, consumers experienced a staggering surge in fraud losses, as recently released data from the Federal Trade Commission reveals. Reports indicate an increase of over 30% from the previous year, with losses amounting to nearly $8.8 billion.
It’s up to your risk and compliance teams to mitigate credit, market, and operational threats. Artificial intelligence can help these departments analyze large volumes of data and identify abnormal patterns indicative of potential fraud, so they can accurately assess and respond, strengthening security measures across your institution.
Customers and Members
Finally, your most important stakeholders remain the people and the communities you serve, who rely on you to deliver accurate, high-quality, personalized financial information.
With generative AI tools like KAI Answers, your customer and member care teams can deliver tailored product recommendations, financial insights, and services in less time and with improved accuracy. KAI Answers lets your employees search through and sort vast amounts of information instantaneously. It then summarizes the best responses and cites the source documents. Your care teams will be grateful for the extra time to focus on delighting customers.
Arm Your Stakeholders with a Generative AI Strategy
Financial institutions must have a well-defined generative AI strategy to navigate the evolving landscape of AI-powered technologies. With a strategy in place, your institution can harness the full potential of generative AI, effectively manage associated risks, and maximize benefits.
Consider the following components as you put your generative AI strategy together:
- Clear Objectives: Define specific and measurable objectives aligning with your financial institution’s goals.
- Governance Framework: Ensure the responsible and ethical use of generative AI by introducing a framework that mitigates potential risks.
- Talent and Expertise: Find a great partner with expertise in AI, data science, and domain-specific knowledge in the financial services industry to develop, deploy, and maintain AI models effectively.
The Future of Banking
A combination of humans and generative AI will power the future of banking, working together to advance financial knowledge and promote financial wellness.
Human resource managers will use it to adapt training programs, marketing departments will optimize its potential for targeted campaigns, technology leaders will leverage it for innovation, and customer care teams will embrace its capabilities to enhance service quality.
Ready to make generative AI part of your financial institution’s future? Start a conversation with us, or read our Cornerstone Advisors report, which explores the distinctions between chatbots and digital assistants, the importance of treating them as part of your team, and strategies to bridge the personalization gap.
