Future Of Financial Services with Evolution of AI

    An Executive’s Challenge for Innovative AI investment and strategy considerations

                    The Modern investors and investment ecosystem require more than ever personalized engagement and outputs from their advisors and financial services firms. The AI long with other emerging technology’s evolution is creating a rapid disruption in financial services industry and a global commerce ecosystem. This is forcing executives to move aggressively on their technology adoption and capacity for change. A CXO is always thinking on way to Improve customer experience by leveraging data and advanced technology to drive customer intimacy, a CMO is constantly looking for creative ways to get new customers & retain existing customers to increase lifetime value that drives efficiency & enable more resiliency, a CRO’s goal is to drive incremental revenue growth, Identify new revenue stream and improve velocity of Sales, a CFO is exploring ways to look beyond book value to assess true value of assets and better predictability on forecast/management of bad debt, a CPO’ are always looking ways to improve strategic sourcing and a CDO’s reimagine the operating model by leveraging the best technologies to improve Business Agility.

        For majority, they are playing innovation catch-up through large transformation projects but getting hampered by aging technology infrastructure, pandemics like COVID-19, increased competition, and customer expectations. These challenges are mandating them to think out of the box and discover new operating models to determine which bold bets will help them to create the powerful innovation strategy for the future and stay relevant.

         The market and regulatory uncertainties will define when and how an executive should take a decision on the innovation transformations based on customer sentiments.

         The goal of an innovation strategy for investing in AI and emerging technologies should be to come up with products that helps customer grow their wealth in short-term and long-term along with an excellent and enhanced customer experience. This helps to increases customer satisfaction and in-turn their loyalty. A successful strategy should align to:

• Organization Vision and Culture - Align to vision, mission, culture, structure, and social worth to create value proposition of the organization. Layout its clear goals and incentives.
• GTM Strategy - A clear understanding of the marketplace, competition and convert that information into an asset by effective value proposition. The value proposition includes the objectives of customer engagement goals, agility of a business and focus on customer feedback & satisfaction.
• Customer Experience & Engagement Strategy - Create a positive brand image that delivers a world class customer experience and personalized engagement to manage end-to-end customer lifecycle.
• Cutting edge technology and organized data - Identification and implementation of technology that aligns to above goals is very important. An organized, clean, and quality data allows the users to make right decision quickly and correctly.
• Metrix - Tracking success or failure of the solution through internal and external measures provide an understanding of the current state and improvements needed. The reports and dashboards help to measure both success/failure as well as the ROI.  

            The rapid evolution of innovative products and technologies signify the importance that investment done by the organizations with customer at the center. It builds a trusted relationship with the customers by genuinely caring for them. These outer band technologies are maturing at the same time in marketplace and driving the transformations not only in Financial Services but also to overall commerce landscape.

Building intelligent automated workflows coupled with AI/ML has opened doors for banks for new modes of business with personalization experiences, product recommendations and customized direct marketing.

• Actionable insights with Data & Analytics for the customers as well as call center agents that helps internal changes to improve CSR performance and better serve customer.
• LCPs and NCDPs enable developers and users to create programs using drag- and drop GUI features rather than standard computer coding. A tech survey claims it can expedite the development by ~>50%, free up developers’ productivity on other important tasks by ~ > 70%, Increase revenue by ~>50% and brings added value to employee’s life ~> 75%.
• Blockchain enables individuals to securely transfer information without the need for a third-party provider. This implies that banks may use this technology to monitor funds, handle transactions, and verify clients without relying on a third party like PayPal or Mastercard.
• IOT has become increasingly popular among FinTech organizations, allowing more wireless gadgets to interact across linked networks to a centralized control administration. Embedded systems and advanced solutions are rapidly emerging, allowing for intelligent and smooth communication across diverse nodes.
• Cryptocurrency has grown in popularity throughout the world in recent years. There is no doubt that crypto platforms are the FI’s future. Companies are not just growing their ICO investments and adoption of virtual currency, but service providers and traders are also becoming more prevalent in an increasingly complicated field.
• AR/VR have the potential to substantially benefit the FI. AR in banking apps, FIs can enhance the interface of their mobile app. This is especially true if the app is compatible with headsets. VR helps banks in creating immersive experiences that improve user engagement.
• Cloud liberates FIs from non-core businesses such as IT infrastructure and data centers, while enabling access to flexible storage and computing services at a lower cost. It is also spawning new formats such as open banking and banking-as-a-service, shaking up the age-old relationship between customers and financial service providers.
• Open API services are among the fintech technologies that are getting more popular. Such APIs are crucial for creating a unified user experience while safeguarding data via endpoints.
• RegTech is a new phrase of using technology to track regulatory operations through different features e.g.  transaction monitoring, customer identification using biometrics, face recognition, regulatory reporting etc.