Practice Lead: Financial ServicesI’ve worked in the Financial Services Industry for over 20 years with broad experience in Retail and Investment Banking and Insurance consulting typically in Business Integration and Process Management. I’ve helped to deliver Digital projects in the Insurance industry, sales and service effectiveness for multi-channel Banking and Middle and Back office IT improvement in Investment Banking and Asset Management (focusing on processes, culture and systems) and Regulatory Reporting.
Over the next three years, Financial Services institutions will use Cognitive systems, taking advantage of modern tools like machine learning, artificial intelligence, and big data. Unlocking the power of AI can improve the full stack in Financial Services – from customer engagement and relationships, to marketing and product management. By automating the decision process, decisions can be made faster, more affordably, and more accurately than using human counterparts.
Whilst we are perhaps still a long way from the first fully-automated bank, there are already signs in the wider industry of early adoption in this space. Chat bots that help to resolve the majority of customer issues substantially reduce the cost basis. The customer benefits too because they don’t have to wait 20 minutes on hold to a call centre, just to get a three minute engagement that resolves their minor problem.
Players in this space, such as Facebook, IBM, Google and Adobe, are already building cognitive Service Solutions.
Early market leaders are already innovating. Lemonade, for example, is a New York-baed home insurance company which recently took the world record for settling an insurance claim: three seconds from claim being filed, to running more than a dozen anti-fraud algorithms, to paying the claimant. Lemonade’s ‘digital native’ approach – for example, automatically checks ordinance survey records, and Google Maps, to understand the composition of an applicant’s home, whether it resides in a flood plain, etc – massively enhancing the customer experience whilst reducing the administrative burden of signing up a paying customer.
There are a number of obvious competitive advantages where AI can improve existing operations:
In a Digital economy, Financial Services AI will improve the customer experience and enable self-service and offer greater personalisation. By using natural language generation engines which interpret behavioural changes, banks will improve their customer relationships, whether it is assessing the impact of investments choices which trigger a personalised message to inform the client or providing recommendations on savings products. Chatbots which are driven by AI will play important roles in the relationship with the consumer and Gartner believes that by 2020 Cognitive computing and new AI projects will achieve long-term success four times more often than others.
Internal business process automation
The shared services area in Banking and Insurance can reduce manual processes by using machine automated algorithms. When Financial organisations use image recognition, machine learning and natural language processing (NLP) to automate business processes, they can reduce cost, improve efficiency and be responsive to customers on demand with fewer touch points. The main processes which apply to this innovative technology are Insurance policy renewals, claims processing, customer communication, self-service on account openings, qualifying loan applications and product administration. The banks and insurance companies which succeed will be those who use valuable information or ingest the data from their Data Lakes or business intelligence systems.
Cognitive manages to understand patterns and consumer behaviour across structured and unstructured data. This means by using a personal assistant, a customer’s questions can be answered based on the knowledge of a broad number of financial products. Also, NLP will help to determine customer preferences, preparing for an appointment with a customer and discover new and unrealised opportunities. All interfaces in respect to NLP will reduce the reliance on other parties in the process and offer quicker choices on decision-making.
We are able to assist companies with the following challenges:
Minimum, Viable, and a Product:
Script-writing is one of the biggest challenges. ‘Conversation Architects’; people with different backgrounds like psychologists, user experience (UX) consultants and script writers possess a mixture of relevant skills: UX research, language analysis, psychological understanding, creative ideation and script writing. Integrating these individuals into the IT department will help to build digital assistants with human-centred services suitable for today’s customer focused companies.
How can BJSS help?
BJSS can support many organisations to adopt or improve the use of AI with the following approach: