United States

Banks are spending billions of dollars on AI to give their customers an Amazon-like experience

Dec 14, 2017
From Advisory Institute

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From the Advice Worth Keeping podcast series
Hosted by Stan Lepeak, Global Research Director,
KPMG LLP Management Consulting

 

The banking industry, and the broader financial services sector, has historically been a laggard in technology investments. But its spend on artificial intelligence and cognitive technologies is outpacing all other industries – to the tune of a projected ~$10 billion by 2020.

Why are banks making this massive technological investment? Because they’re becoming acutely aware that today’s digitally-savvy consumers expect a fully personalized and individualized banking experience – an Amazon-like experience. KPMG calls this a “segment of one,” wherein banks use artificial intelligence, cognitive capabilities, data and analytics to comprehensively understand and respond to who each individual customer is, what they want, and what they need, via any type of digital device.

In this podcast, Mitch Siegel, National Financial Services Strategy and Transformation Leader,  and Terry Walls, Customer Service Transformation lead for KPMG U.S., sat down with Stan Lepeak to discuss:

  • Why banks are re-bundling services and partnering with Fin Techs and others to remove complexity, deliver a better experience, and retain customers
  • Why regulators are opening up competition so consumers can gain access to better and more unique services – and how banks needs to quell customers’ concerns about the data they provide to obtain the highly relevant services they want
  • Why “how much should I be investing in digital technologies?” and “how much of my revenue should I spend on them?” are the wrong questions for banks to ask
  • Why incremental investments in artificial intelligence as a “middle layer” allows banks to exploit the value of their legacy systems.

 

Duration: Approximately 19 minutes.  Activate the recording with the play button over the image.

 

Related insight

Gain more insight on this topic by today's speakers, at bloomberg.com:
Bank Customer Service as a Competitive Advantage.

KPMG can help improve your customers’ service experience while also removing inefficiencies that contribute to wasted expense and customer dissatisfaction.
Learn more.

 

For more Advice Worth Keeping, view the full list of podcasts and visit the Reality Check blog.

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