The banking industry is in a digital arms race. In 2018 alone, it is estimated that Wholesale banks globally invested approximately US$9.7 billion to enhance their digital banking capabilities in the front office. For retail banks, online and mobile channels have become equally important as their ATMs and branches.
Banks around the world are already realising how investments in digital technologies could benefit customer acquisition and satisfaction. But satisfaction is relative. As leading technology brands, such as Apple, Amazon, or Google, have become the gold standard for digital engagement, many consumers now have a stronger emotional connection with these brands than they have with their banks. If banks want to keep up, they have to manage the digital experience they offer to make these emotional connections, which, ultimately, could translate into sticky interactions and more profitable customers.
Against such a backdrop, this article explores how some of the pioneers in the banking industry are embracing machine learning and AI to strengthen their digital capabilities.