The extensive outlook for digital transformation in banking was expected this year. In December last year, Provenir’s Managing Director for EMEA, Frodo Berg, said “the widespread adoption of hyper-automation and the integration of AI will further empower financial institutions to streamline their operations, boost efficiency and harness the power of data analytics”.
As we hit the mid-point of 2024, legacy banks’ efforts to scale their digital transformation are coming to the fore.
Digital transformation in banking: Enhancing customer experiences
According to Confluent’s Director of Financial Services, Peter Pugh-Jones, the first shift for banks is to realise they are “fundamentally data companies: really, data is their ‘product’, rather than the agreements they enter with customers.”
Now, it’s about using the data in the right way to meet customers where they are. Shilpa Doreswamy, Head of Banking at GFT UK, notes the impact of hyper-personalised offerings changing expectations consumers have of their financial institution.
She says: “The creation of hyper-personalised customer experiences through the use of AI and advanced data analytics to provide tailored financial advice, offers and customer support through digital platforms.
“Leveraging AI and machine learning for data-driven decision-making will also become pivotal. Use cases around customer acquisition, personalised product recommendations, real-time fraud prevention and process optimisation will expand.”
BRD recently shared its transformation journey with FinTech Magazine. It has started introducing data analytics to maximise the vast pools of existing data while introducing AI gradually to streamline operations and enhance customer experience.
“AI is being introduced on a small scale, meaning we have a very consistent path ahead, which is the way to go with AI,” says BRD Executive Director for Digital Transformation, Maja Mikic.
Elsewhere, Santander UK’s Chief Transformation Officer and Director of Financial Crime, Jasmeet Narang, outlined the bank’s path to a digital future. You can find out more in the video below.
