Most banks are already on board with the benefits of AI, with 72% of finance leaders saying they use it to support and automate business processes, analyze data, and more. However, when it comes to transforming the customer experience (CX), many financial institutions are just starting to recognize AI’s full potential.
This is especially true when it comes to Generative AI (GenAI). Unlike traditional AI systems that operate within fixed rules and narrowly defined use cases, GenAI is designed to create, adapt, and innovate. Powering popular tools like ChatGPT and Google Genie, GenAI can craft original content, including text, images, and code, as well as handle complex, open-ended tasks, create human-like responses, and adapt in real time. From a CX standpoint, that means it can do things like write personalized messages, have natural conversations, and address a multitude of customer needs across diverse channels and touchpoints.
In this article, we’ll explore some of the key ways you can start leveraging this next-gen technology to create consistently strong customer experiences that build trust, loyalty, and business.
Personalized Product Recommendations
GenAI enables banks to move beyond generic offerings to consistently deliver highly personalized product recommendations. By analyzing vast amounts of customer data ranging from past transactions to current spending behaviors, GenAI can help uncover valuable insights that can be used to offer more targeted financial advice and solutions. For example, GenAI can suggest a credit card tailored to a customer’s spending patterns and financial goals, or it can generate a personalized email featuring mortgage options based on a customer’s recent home searches, income level, and location. Plus, these recommendations can be delivered across multiple touchpoints to increase cross- and upsell opportunities while boosting customer engagement.
Anywhere, Anytime Customer Service
GenAI powers an entire ecosystem of customer service tools that includes chat and voice bots, real-time banking agent copilots, and smart self-service portals. These tools enhance CX by enabling automation, personalization, faster resolution, and more human-like interactions. Available 24/7, these assistants can help customers with everyday tasks like checking balances and paying bills as well as more complex issues like resolving transaction errors or disputing charges, without the frustration of long hold times or limited business hours.
Streamlined Processes
GenAI is making it a lot easier for banks to streamline their day-to-day operations. It can quickly handle things like verifying customer identities, updating account information, and categorizing transactions with greater accuracy and speed than traditional AI systems. It can also handle more complex processes like loan applications and underwriting by reviewing documents, highlighting key risk factors, and even drafting initial credit memos to help your loan teams make faster, more informed decisions. Even customer disputes can be handled more efficiently, with GenAI helping draft responses and escalating issues when needed.
Security and Fraud Prevention
GenAI can also help with one of the biggest drivers of customer trust: security. By continuously analyzing vast volumes of transaction data and customer banking behaviors, GenAI can spot unusual patterns like a login from an unexpected location or an unusually large transfer. It can also scan emails, messages, or web pages for signs of phishing attempts, and alert customers to help prevent breaches. And, because it understands language and intent, it can spot more sophisticated scams that traditional filters might miss. By flagging anomalies faster and more accurately than rule-based systems, GenAI can help banks and customers respond faster and more precisely to emerging risks.
What’s Next?
In upcoming articles, we’ll continue to explore AI’s impact on CX in banking, including how your team can best leverage these tools to support and augment customer care. Whether you’re just beginning your CX journey or ready to evolve an existing program, contact CSP to see how you can use customer feedback to understand the role GenAI plays in shaping their experiences with your bank.
