Modern banking functions are driven by the momentum created by digitization. This push has raised the expectation of both bankers and customers in terms of simplified operations, easy-to-access and manage accounts, and prompt query resolution. Banks and financial institutes are proactively building their resilience strategies respective to their business roadmap. Aligned with this objective, adopting automation technologies to reduce operational tasks and leveraging the efficiency aspect is one of the key objectives of organizations.
Leaders are embracing AI in Banking and financial services to improve customer engagement, control operational costs, and augment productivity. Starting with accounts servicing can land you halfway toward your goal to achieve high customer satisfaction and superior operational feasibility.
According to a report, 77% of bankers believe that unlocking value from AI will be the differentiator between winning and losing banks .
Organizations need to identify use cases in their processes and the value proposition of the AI-led initiative. Considering one of the core areas in banking, accounting services have immense scope for end-to-end automation. Also, the value it can bring through excellent customer satisfaction and experience will lead to more customer loyalty, retention, and integrity.
In this blog, we have focused on the impact of AI in banking functions such as account servicing, and how it can win you more satisfied customers.
How AI in banking can streamline your account servicing function?
Account servicing is one of the basic, yet important services offered by banks. This includes any communication relevant to the customer account details, payment history, making payment records and account statements available to customers, enabling and disabling requests for products and services, and many others. At this stage, the customer majorly expects a resolution instantly once the request is placed. The growing influence of digitization and the maturity of automation in banking and financial services is driving industry leaders to adopt intelligent technologies like AI.
AI is a key component of the modern account servicing process. It helps provide a more accurate and efficient customer experience. It has become a critical part of the standard, repetitive customer account services provided by banks. AI can handle many of these functions on behalf of the employee, freeing up staff to focus on more complex tasks.
Application of AI for account servicing in banking can return high business value and operational feasibility
Today, many operations employees perform dozens or even hundreds of similar tasks every day–reviewing customer disputes on credit or debit cards, processing or approving loans, making sure payments are processed properly, and so on. It’s not surprising errors happen.
Automating these and other processes will reduce human bias in decision-making and lower errors to almost zero. This will give employees time to help customers with complex, large, or sensitive issues that can’t be addressed through automation. Also, employees will have the authority to take decisions and the ability to quickly resolve customer issues.
Real-world examples where AI in banking for account servicing can be applied:
Services dedicated to consumer banking majorly include requests related to KYC, accounts updating, cards, loans, and cheques, among others.
How does AI assist in account servicing for banking operations?
With the increase in online banking and digital payments across various verticals such as retail and corporate banking, leaders are trying innovative ways to offer customers a tailored experience through various services such as consumer loans, credit card processing, current, and savings account management, etc.
Consider a real-life scenario example of a request for a new bank account which requires a process to identify and validate the customer’s KYC documents. With appropriate training, AI tools can analyze, extract data, and process information into the repository in an automated manner without wasting human effort. And the scope of development is even more, as the technology evolves, it can efficiently evaluate the possibilities of fraud and bankruptcy.
AI and Intelligent Process Automation assist banks in gaining a competitive edge. Banks today are utilizing machine capabilities with AI-driven automation to improve operations, expand, and save costs. It aids in the automation of customer service by managing an account, loan, or card-related inquiries, as well as sorting bank statements, property documents, wage slips, finance-based paperwork, and the assistance of loan officers with documentation
The application of AI in banking operations can handle various account servicing activities such as incoming inquiries, product and customer queries, and dispute handling among others. It can also be applied in the back office, where it can process documents such as bank statements and evidence of identity, as well as register in internal systems.
As the banking industry evolves, embracing new technology will create value and help reposition itself as a highly efficient and robust sector. AI will be one of the core competencies banking leaders will be reliant on.