A new study from NTT suggests that over 80% of financial institutions believe AI is a vital part of differentiating their business, future success and generating new business. The study, however, indicates that only 16% of financial businesses use AI and data.

Senior financial leaders overwhelmingly agreed that the adoption of AI was a very important competitive driver of success over the coming years. While AI generates opportunities for creativity and further innovation, existing challenges are influencing the adoption of this technology. Implementing technology and requirements with organisational skills are considered particular challenges when considering AI services.

Since the pandemic, customer searches for digital finance solutions and applications has risen considerably. Today more than ever, financial institutions need to find a way to eliminate these barriers within AI to support customers and be capable of providing the support they need.

Customers display clear insights that they require banks to work as strategic partner on their financial decisions. AI offers a pathway to providing the services that customers are demanding. The data clearly shows that financial institutions need to focus on AI to meet the rapidly evolving needs of consumers, or potentially risk losing customers to their competitors. 

The main challenges for financial institutions to attract and retain customers involves using AI to offer a customer support channel to each customer, building further trust with customers, emerging competition from within the fintech industry, limited in-person customer engagement and a relatively slow rate of launching new products.

The majority of financial institutions view personalised services as an ideal opportunity to attract new customers. However, data shows that only 16% of financial businesses are using data to provide financial guidance to their customers.

The key drivers for financial businesses investing in personalised services are improving customer acquisition and retention, generating new revenue channels and improving customer connections. Financial institutions cite challenges with implementing AI because of the necessary changes needed to their business. This includes adjustments to their technology, skill changes, management support and creating a new business startup culture in an already established business.

The next stage in delivering the digital bank of the future is enabling a more comprehensive use of AI and other digital technologies to connect and engage each customer. Financial institutions worldwide need to focus on AI, big data analytics and processing power, as well as implement the necessary changes and strategic partnerships required to meet the expectations of their customers.