AI is the most important success factor - say more than 80 percent of financial institutions in an NTT DATA study. But: Only 16 percent use AI and data for personalized customer recommendations - where does this discrepancy come from?
According to a study by NTT DATA, the majority of executives in the financial services sector agree: the implementation of Artificial Intelligence (AI) will be the decisive factor for competitiveness in the next few years. In fact, 83 percent of respondents agree that AI and access to specific data sets create new opportunities to differentiate offers and acquire customers. However, there are still obstacles and the introduction is slow.
There are obstacles to overcome
The respondents cite the implementation of technology (55 percent), the creation of a new startup-oriented culture in an established company (51 percent) and the change in organizational skills (43 percent) as the greatest challenges in implementing personalized proactive services. Still, financial institutions (FIs) need to find ways to overcome these hurdles. Finally, especially in light of the COVID-19 pandemic, consumers are increasingly looking for digital financial solutions and apps that anticipate their needs and proactively offer financial support.
AI gives financial institutions a head start in confidence
"The study clearly shows the potential of AI for financial institutions that want to distance themselves from the competition," says Ralf Baust, Head of Banking at NTT DATA DACH. “Established financial service providers who are now using AI technologies can increase their customer confidence over new competitors. Because they have experience in meeting high regulatory requirements under all circumstances - unlike the new challengers. "
The five biggest challenges for financial service providers
Use of AI for individual advice to customers
Build trust with customers
Competition from fintechs and tech companies
Limited personal customer interaction
Slow introduction of new products
As part of the study, in December 2020, NTT DATA surveyed 4.807 consumers and 476 executives from the banking, brokerage, capital market, asset management, and card business and payments sectors in the USA, Great Britain, Germany, Spain, Italy, Japan, Brazil and Mexico. The key question: How can AI enable financial institutions to win and retain customers in a digital world? More about the results of the study: “Get Personal: Banking on AI to Help Customers Reach Their Hopes and Dreams”.
NTT DATA - part of the NTT Group - is a trusted global innovator of business and IT solutions with headquarters in Tokyo. We support our customers in their transformation through consulting, industry solutions, business process services, digital and IT modernization and managed services. With NTT DATA, customers and society can confidently move into the digital future. We are committed to the long-term success of our customers and combine global presence with local customer support in over 50 countries.
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