Generative AI In Everyday Banking: A Key Component for Hyper- Personalization

Within the ever-competitive arena that is retail banking, one must leverage each tool that they can for a strong competitive advantage within the market. As each bank competes with the other for respective market share, client and member-centrism will be key in customer retention and with onboarding new ones. What can be done to optimize this approach? What can be used to gain an advantage in one of the world’s most competitive industries? A simple answer can be technology, yes but technology is such a broad term. Yes technology — software can be a great aid for these efforts but I think there must be a shift in perspective. We must pivot the way that we view financial institutions. These institutions; that are one of the pillars keeping our societies in motion will evolve. This is so because we are evolving: our desires, preferences and all are all changing based on our behavior.

Think for instance your Netflix, Amazon and Google accounts — those are all being tailored by the software integrated within those platforms to give you a better — wait more than better, to give you a hyper-personalized customer experience. Isn’t it lovely that when we log into these platforms, Amazon recommends consumables, clothing and other goods exactly for us? Same for Netflix and Google. It’s pretty neat and can get a little surprising if you’re not used to it. It’s almost like they’re in your head. Well, they kinda are in your head given that you have told them things about you with your own data. Data. Yep, that’s what it is. Your own data is being used to better serve you — responsibly of course. Interesting.

So, if these large technology companies are using our data responsibly for the betterment of our entertainment, shopping and browsing, why can’t our financial institutions do the same for the betterment of our credit or spending or saving? Yes they can. I am certain they can. Not just because banks have all the money and with all of the money, you can make necessary changes. No. I know they can because banks understand evolution and competition. This is certain. From hand-written ledgers and handshakes to electronic transactions and digital signatures, banking — similar to other industries must embrace what is now required and preferred or else they will be left behind. That is just the way it is.

So just as big Google, Netflix and the other guys hyper-personalize their platform with their software, banks will and are doing the same. I guess you can say that the modern bank that fully embraces and leverages these technological advances will become a technology company itself. Of course, this concept is not a totally new one. Financial technology has been around for some time. Yes. However, banks themselves may just evolve into Financial Technology Institutions (FTIs)- especially if you are going to use the same hyper-personalized model that the other big boys in tech are using. Okay. I think they get it now. Now what is the technology or software that they are using anyway? It’s artificial intelligence man. More specifically, generative artificial intelligence that allows input data to be gathered and used strategically to make better decisions — simply put.

Generative artificial intelligence’s utility within everyday banking can yield great returns by allowing banking stakeholders to assess and extract customer/client/member segmented data for specific tasks and purposes. These tasks and purposes can be further examined upon and executed using the generative artificial intelligence. As a result, this repeated process will therefore allow everyday banking clients to have access to that high-net-worth individual approach. But rather than a banker calling the client or member and interesting them about particular options on how to get the best out their money and its usage, this will all be done digitally — given that artificial intelligence will be able to interpret and anticipate their wants, needs and sentiments for their short term, long term and prospective banking goals — all from their own data. Interesting.