How can artificial intelligence transform the banking sector?

A report from banking platform Mambu and Google Cloud has claimed AI will ‘reshape the world of banking as we know it’ and deliver more personalised experiences.

The report – titled Bank of The Future – identifies ‘ubiquitous banking’ as the next frontier in the digital revolution of finance.

The paper also highlighted three key building blocks that will support the future of banking. These building blocks were a customer-centric strategy, value-based AI use cases and composable technology architecture. The latter relates to flexible, cloud-based core banking software that enables ‘plug and play’ functionality to respond to evolving customer needs, tech trends and market dynamics.

Mambu and Google Cloud found in the report that the pandemic has boosted consumer demand for always-on, mobile-first and personalised digital services, showcasing that traditional banks have lost their place as the only go-to for money management.

The report also highlights the changing regulation in the banking sector, including the introduction of open banking and PSD2, as particular forces that are speeding up the disintermediation of traditional banking providers.

Mambu CEO Eugene Danilkis said, “The report shows the world that banks were originally created to serve no longer exists. Historically built to last, today banks need to be built to change. If traditional players want to reposition themselves as lifestyle partners, in tune with the modern banking needs of their customers, then they must evolve rapidly – and without fear.

“Key to this will be their embrace of AI technology which has broad ranging applications from fraud prevention and risk management to delivering personalised customer experiences and driving efficiencies through greater automation. But banks must act fast if they want to avoid getting left behind. Only by leveraging the capabilities of AI and cloud technologies will they be able to reimagine the customer experience and tap into new revenue streams in a competitive market.”

Google Cloud director for the financial services industry Joachim Wuest added, “As the financial services industry continues to digitally transform, there is an increased need for solutions that help businesses deliver personalized experiences to customers. We look forward to partnering with groups like Mambu to bring AI-powered solutions to banking organisations as they move along their digital transformation journeys.”

The report can be found here.

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