As Artificial Intelligence (AI) becomes an integral part of the banking landscape, customer interaction is also evolving.
Virtual assistants and chatbots can provide quick answers to financial questions, offer analytics, and perform basic transactions.
This streamlines the customer experience and changes the way we interact with traditional banking services.
As AI positions itself at the heart of the banking industry, the crucial question arises: How is this technology redefining the traditional concept of savings and financial management?
Personalization of the financial experience
AI-powered personalization starts with data collection and analysis where financial institutions can track and analyze long-term customer behavior.
This includes spending patterns, savings goals, investment history, and much more.
AI leverages this data to create accurate and detailed financial profiles that will enable a deep understanding of individual aspirations and needs.
For example, if a client has long-term savings goals, the AI could suggest specific investment strategies.
For someone looking to buy a home, one could look at mortgage options and calculate possible monthly payments.
Challenges and Ethical Considerations
Despite the benefits, the use of AI in banking decision-making is not without its challenges. The reliability of the algorithms, the transparency of decisions and the ethics of data manipulation are issues that must be carefully addressed.
Also, ensure that AI is used for the benefit of clients and not to maximize the profits of the financial institution.
Risks and Stability: Is the AI infallible?
Although AI can make informed decisions, it is still a technology and as such is not without its risks and failures.
Algorithms can make mistakes if based on incomplete or incorrect data, which could lead to unintended financial decisions.
The lack of human emotions can also be a factor to consider, since the AI cannot anticipate unusual events or situations that require sensitivity.
AI projects
The vanguard of financial innovation is already underway in our country. Entities such as BBVA, CaixaBank and Santander already apply projects with this technology.
BBVA, for example, has developed a virtual assistant using AI. Through its app, this assistant uses different tools to help users improve their financial health.
Six out of ten digital customers, according to the entity, already use the financial health features of its app to manage and plan their economy.
In the first quarter of 2023 alone, the volume of interactions reached 57 million, which represents an increase of 62% compared to the same period of the previous year.
Additionally, and directly linked to savings, customers have at their disposal different functionalities such as ‘My goals’ or ‘Schedule your account’, focused on achieving savings goals previously established by the customer in the app.
CaixaBank, for its part, has developed its own technological model that can manage each case in the same way as an employee would.
This model has achieved an accuracy of 99%, which means that almost always the system thinks and acts as a person would.
For example, within Wealth Management & Insurance, it has enabled rebalancing of funds and profitability for its clients.
These projects not only optimize the banking experience, but also demonstrate the commitment of these institutions to provide innovative solutions that translate into tangible benefits for their customers.
The future of banking
While AI can make analytical decisions and streamline processes, the human touch is still essential to understanding the emotional and personal aspects of financial management.
The combination of AI efficiency and human intuition could pave the way to a richer and more effective banking experience.
The future of banking seems to be marked by a synergy between AI technology and human trust.