Gege Gatt, CEO of AI firm EBO.ai, argues that banks must urgently address their persistent trust deficit in order to embrace the coming year on a strong footing.
The financial services industry has reached a turning point. 2019 has been the year in which financial technology has established its place in the mainstream by demonstrating its transformative potential.
Go deeper with GlobalData
Going into the new year, while integration of this tech is creating fresh challenges for the industry, banks must address old issues such as trust, as a more immediate priority.
As we reach the end of 2019, consumer trust in the banking sector remains at the same low levels seen in the fallout of the 2008 financial crisis. According to YouGov, 66% of UK adults don’t trust banks to work in the best interests of society, and an increasing number of people are looking to move to alternative providers. This is most prevalent with millennials, with 45% saying they are likely to change banking provider in the next 12 months.
Many are choosing ‘challengers’, like Monzo and Starling Bank, who have prioritised customer experience on their digital platforms. Dynamic and innovative, their high investment to ensure superior customer experience has given them the upper hand over traditional institutions.
In 2019 hesitation on innovation has been costly, in 2020 however, it may be fatal. For financial services institutions of all sizes, investing in the three Ps – personalisation, prediction and privacy – will pay dividends.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataPersonalisation
AI may be able to operate 24 hours a day, but people are still discouraged by virtual agent customer service interactions that don’t feel individual. People want personalisation. Consumer expectations are already powering the move towards hyper-personalised content and messaging, and we can expect the gap between AI and human customer service to close in 2020. Those firms that can implement personalisation the best will give themselves a competitive edge.
Predictability
Success for many financial service businesses in 2020 will depend on the ability to turn vast data pools into smart predictions. Organisations that develop strong data analytics capabilities will be able to create correlated models and apply real-time analysis. This generates unparalleled insights into customer sentiment and needs. AI is built on maths, and utilising data sets intelligently will allow firms to anticipate market behaviour to their benefit, while delivering better outcomes for their customers.
Privacy
Finally, privacy will continue to grow in importance next year. The greater our reliance on digital platforms, the greater the digital footprint we leave. Individuals are waking up to this fact and are rightfully challenging organisations who misuse their data.
If people are going to work with AI in 2020, they need to be able to trust it. Companies committing to ethical, transparent practices can use it as a competitive differentiator and will become a winner for consumers. ‘Explainable AI’ will help build trust while simultaneously allowing companies to refine their services. The EU’s ethical guidelines for ‘Trustworthy AI’ showcases its significance – and the need to take it seriously.
2020 is set to be an exciting year powered by increasingly high consumer expectations driven by a more digitally channelled world. The opportunities for enhanced personalisation, privacy and prediction are there. But those financial institutions that take customers for granted will inevitably quickly fall behind.
