Examining A.I. in banking

Since the launch of ChatGPT a year ago, A.I. has transformed the banking industry and will continue to do so in 2024. The technology radically altered the way employees do their jobs and allowed them to rethink age-old industry challenges.

To illustrate its transformative effects, we’ll lay out three key fields in the industry that are seeing significant impact from the technology that communications pros need to follow: fraud detection, customer experience and talent.

#1: Fraud Detection

93% of compliance decision-makers struggle to meet increasing regulatory requirements. The industry is contending with complex factors thanks to digitization, such as accelerated payment transactions and a rapidly evolving threat landscape. 

The stakes are high – customer trust in the banking industry is fragile, and the costs incurred in repairing fraud damage is steep. 

A.I. has emerged as a powerful tool in fraud detection and prevention, with its ability to analyze vast amounts of transactional data. By identifying unusual patterns and enhancing the efficiency of monitoring teams, AI is instrumental in addressing the evolving tactics of threat actors.

#2: Customer Experience

Long wait times, outdated technology, and shifting consumer preferences pose challenges for the banking industry in delivering positive customer experiences. In our digital-first era, customer experience trumps loyalty, as evidenced by the 53% of financial customers who would switch providers for better digital experiences. 

Companies that invest in better customer experiences will not only enjoy higher retention, they’ll also grow faster. To reap these benefits, many companies are employing AI to create tailored experiences for their customers, or even test new products on digital consumers to spare real customers the pain points of trial and error. 

#3: Upskilling the Workforce 

The evolving technology landscape, coupled with ongoing economic uncertainty and talent shortages, poses a challenge for nearly every industry. But in an industry like banking, where over 46,000 people are employed in the "A.I. and data core" across North America and Europe, there is a particularly urgent need to insulate talent from unprecedented change. 

To meet these evolving needs, many organizations are leveraging AI to enhance training programs, and automate routine tasks like earnings announcements. This not only improves efficiency, but it allows employees to focus on more strategic tasks that advance business goals.

Beyond optimizing HR, customer service and cybersecurity functions, A.I. has created exciting opportunities for communications pros to seize the rapidly evolving news cycle with technology and innovation narratives. Highwire’s Financial Services Practice has expertly counseled clients on how to navigate these cycles, and in doing so helped them attract top-tier talent and stand out in the industry. Reach out today to learn more.