Financial CRM: 5 Key Impacts of AI in Financial Services

Barely a day passes by without Artificial Intelligence (AI) being hailed as the second coming of financial innovation. From instant fulfillment to block chains, AI is causing financial services to experience a ‘big bang’ with data science and machine learning. Large amount of automated processes and other applications are attributed to the integration of AI in financial services through financial services CRM and mobile banking apps.

The 5 key areas where financial institutions can best implement AI in financial services CRM to improve customer engagement and retention are as follows:

1. AI-driven chatbots

Imagine having your own personal financial assistant at your fingertips, ready to assist you 24/7. Thanks to AI-driven chatbots, this vision is becoming a reality for banking customers worldwide. These intelligent virtual assistants, integrated into banking CRM systems, empower customers to initiate account activities and resolve queries effortlessly. Take, for instance, SBI’s Intelligent Assistant (SIA) or HDFC’s Electronic Virtual Assistant (EVA), which simulate human-like interactions, providing personalized guidance and support akin to speaking with a bank representative. This seamless integration of AI fosters stronger customer engagement and satisfaction by delivering timely assistance tailored to individual needs.

2. Predictive Analysis

With mountains of customer data available, financial firms today know customers better than themselves. This is made possible through CRM with machine learning applied on data patterns inferred from a holistic customer 360 intelligence. With predictive analysis applied on a customer’s transactional and interaction history, financial providers can deliver personalized messaging and offers at the customers preferred touchpoints through CRM for financial services. Thus predictive analysis, peppered with AI, can help with higher campaign response rates.

For example, AI assisted nudges, based on predictive analysis of customer portfolio can help customers opt for leveraged funds rather than plain personal loans.

3. Process focused automation

Intelligent process automation can reduce time consuming administrative tasks manifold resulting in major focus on customer acquisition & retention which can be achieved through CRM for financial services.

AI process automation helps in simplifying processes & enabling them to be encoded in the system resulting in higher accuracy, keeping a close eye on high risk involved transactions through risk rating platforms with lesser turnaround time through financial services CRM.

4. Intelligent product customization and cross selling

Cross selling is the bread and butter for financial services. Efficient cross selling will help financial providers extract maximum value for a customer’s lifecycle through assistance of CRM in financial services. AI delivers fine grained information customer transactions and interactions that can be employed for credit analysis, product customization and intelligent cross selling.

Forecasting customer habits by micro segmentation of the entire customer database through CRM helps in boosting cross sales of similar products which have already been acquired based on their previously made investments or personal holdings.

5. Anti-money laundering & fraud detection

Intelligent data aggregation with risk rating platforms helps in generating high alerts on suspicious transactions which can are done either through cross borders or continual financial rule alterations through financial services CRM. Financial firms can rely more on AI driven statistical models to identify authenticity of series of transactions. As a result, the financial advisors can then focus more on high risk rated cases with lesser manual work involved in detecting fraudulent transactions through CRM for financial services.

By marrying the efficient competencies in the field of data science, big data and machine learning, AI is bringing large financial providers and fin-tech on an equal footing. With greater commitment from stakeholders, AI offers first mover advantage to all the existing banks & financial service providers.