Artificial Intelligence will disrupt nearly everything about financial services, and it’s going to happen in the near future.
In fact, 49% of banking executives believe the traditional transactional banking model will be dead by 2020, according a recent report from The Economist.
In some areas of banking, the AI future is already here. Nearly all high speed stock trades are now performed by machines rather than human, and machine learning has revolutionized fraud detection and other areas of risk management.
Is martech next? Customer-facing functions like marketing have lagged behind in artificial intelligence innovation. Emails and offers still tend to be triggered manually, or by rules-based systems. Marketers at large retail banks have inherited tech stacks that were built to solve a different set of problems, with much smaller sets of data. These systems don’t easily allow for digging deep into data to provide relevant service or personalized experiences.
The result is that retail banking is vulnerable to startups and competitors from outside the industry that understand digital transformation. Startups don’t have the same technical debt or compliance requirements of the larger banks. They can quickly adapt to marketplace trends.
And consumers are paying attention. 70% of millennials are open to financial services from providers outside the retail banking category.
AI – not just for fraud detection any more.
But it’s not all bleak for traditional banks. They have built decades of brand loyalty and captured rich data about their customers; data that could be the key for these banks to out-innovate the startups. How can a traditional bank leverage their data to stay relevant with informed, fickle, always-connected customers? And how can a legacy mar-tech stack enable a next-gen customer experience? Is AI the key?
To learn more about how banks are leveraging artificial intelligence to optimize the entire customer experience, download the 2017 AI Marketing Guide: Addressing Banking's Digital Debt.
About Steven Dunston
Steven Dunston is a marketing and product growth leader, with previous experience building teams and scaling demand generation at high-velocity software startups like Usermind and Avalara. Steven is currently Senior Director of Account Based Marketing at Amplero, where he is excited to help enterprise marketers reimagine their tech stack with AI at the core.
Headquartered in Seattle, Amplero is an Artificial Intelligence Marketing (AIM) company that enables business-to-consumer (B2C) marketers at global brands to optimize customer lifetime value at a scale that is not humanly possible.
Unlike traditional rules-based marketing automation systems, Amplero’s Artificial Intelligence Marketing Platform leverages machine learning and multi-armed bandit experimentation to dynamically test thousands of permutations to adaptively optimize every customer interaction and maximize customer lifetime value and loyalty.
With Amplero, marketers in competitive, customer-obsessed industries like telecom, banking, gaming and consumer tech are currently seeing measurable lift across key performance indicators—including 1-3% incremental growth in customer topline revenue and 3-5x lift in retention rates.
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