The financial services industry has not been up to the mark in driving Artificial Intelligence (AI) at scale to transform customer experience, said Capgemini, a global leader in consulting, technology services and digital transformation.
Financial services customers’ overall expectations have still not been met, irrespective of all claims made by enterprises that are investing in Artificial Intelligence (AI) for improving customer experiences, Sudhir Pai, Chief Technology and Innovation Officer, Global Financial Services, Capgemini, told BusinessLine.
This is the situation, both in India and other parts of the world, although the Indian scenario is 10-15 per cent better, he added
“There is still feeling around consumers that AI is more about gaining efficiency for banks than helping me to improve my engagement with bank,” said Pai.
Pai felt that AI would prove useful if a firm is looking to reach new customers with sophisticated journey of data and at the same time gain cost efficiency and control so that the enterprise can invest on digital transformation type programs.
There are a number of challenges financial services firms needs to tackle, from organisational resistance to lack of customer trust. The industry currently lags behind in the field in terms of how customers view its customer-facing AI, and it needs to accelerate progress if it does not want to be left even further behind, according to a recent survey by Capgemini Research Institute.
Financial services industry has seen widespread adoption of customer-facing AI, and the pandemic environment will only accelerate this trend. While organisations have benefited from AI, customers expect and want more, the survey findings showed. About 5,300 customers across 12 countries were surveyed in April and May. On the executive side, 318 business leaders from large financial organisations with at least $1 billion in 2019 annual revenues across a range of sectors and countries that were surveyed.
From enterprise point of view, the survey clearly showed that 50 per cent of banks claimed that 30-40 per cent of their interaction with consumers is now AI-enabled. Three to four years ago, only 3 per cent of customer interactions at financial services firms where AI-enabled. Worldwide, over 58 per cent of their customer interactions are AI-enabled. In India, 44 per cent of Indian customers have daily AI-enabled interactions with financial services organisations.
The pace of AI implementation in banking and insurance lags other sectors – worldwide over 5 per cent of banks and insurance firms have been able to deploy AI at scale across all areas – whereas over 10 per cent of Indian banks and insurance firms have deployed AI at scale across all areas.
The pandemic has resulted in increased demand for contactless transactions, with changes in customer behaviour an opportunity for more AI-enabled interactions for the sector. As many as 71 per cent of Indian customers expect to increase use of touch less interactions during Covid, compared to 61 per cent post-Covid; 64 per cent of Indian respondents have found a new provider during this crisis and they will stick with this provider in the future, and 75 per cent of Indian customers plan to increase payment through digital channels such as mobile wallets and digital payment apps.