AI-Driven Predictive Banking


One of the most exhilarating innovation trends in 2019 will be the continuing movement toward predictive banking. For the first time, the banking industry can unify all internal and external data, developing predictive profiles of customers and members in real time. With consumer data that is accessible, rich and financially feasible to dispose, financial institutions of all dimensions can not only know their customers but also offer advice for the future. This improved use of data will intensify the consumer experience while increasing security and skillfulness. By passing from a rear-view-mirror viewpoint of customer communication to assistance deployed by Robo-advisors and AI-driven chatbots, financial institutions will present consumers with advantage through ‘next-best actions’ as opposed to blind selling of products. The real reform will occur when financial institutions integrate this capability with the expanded services of open banking and connected devices.

The range of banks and credit unions can be increased as virtual agents work on behalf of the customer to find the best mix of solutions for each in real time. This transmutation may also result in the elimination of specific traditional commodities (checking, loans, payments) with the appearance of universal cash management solutions that petition all requirements in an interspersed service. In the end, the center is no longer on putting together useful information and waiting for someone to look at it; knowledge is now presented with the goal of proactively improving customers’ daily behaviors, with figures and insights contextually addressed.

JPMorgan Chase has funded in technology and lately introduced a Contract Intelligence (COiN) platform created to “analyze legal documents and extract critical data points and clauses.” Manual review of 12,000 annual commercial credit transactions usually requires approximately 360,000 hours. Results from the initial implementation of this machine learning technology showed that the same amount of the accords could be reviewed in seconds. COiN has unlimited potential, and the company is exploring additional ways to implement this powerful tool.

Meanwhile, to leverage emerging technologies and help drive the enhancement of its organizational structure, Wells Fargo declared the establishment of a new Artificial Intelligence Enterprise Solutions team in February. Steve Ellis, EVP, and head of the company’s Innovation Group, was appointed to lead the new team. The AI group is nestled under the umbrella of the Payments, Virtual Solutions, and Innovation group. the company began piloting an AI-driven chatbot through the Facebook Messenger platform with “several hundred employees.” This virtual representative communicates with users to provide account information and helps customers reset their passwords.

Celebrating a decade of mobile banking this year, Bank of America Corporation lately made a strong push into AI technology with the introduction of an intelligent virtual assistant named Erica. Officially revealed at the 2016 Money 20/20 conference in Las Vegas, described as the world’s most substantial payment and financial services innovation event, Erica is a chatbot utilizing “predictive analytics and cognitive messaging” to present financial guidance to the company’s over 45 million customers.

With an eye on gaining a competitive edge in the marketplace, Citibank has recently established a succession of innovative partnerships with cutting edge tech companies to expand and improve its services. Through its investment and acquisitions wing, Citi Ventures, the bank boasts a worldwide network of tech firms  that participate in its six Citi Global Innovation Labs. In its portfolio of startup investments, particular attention has been given to eCommerce and cybersecurity.