All eyes on analytics
With customers’ lives shifting online so significantly, data volumes are exploding. It’s not surprising, then, that data analytics is seeing such significant attention, with 81% of industry respondents either widely implementing, partially implementing or piloting this technology (see Figure 3).
Successful banks will access and analyze multiple data sources to design personalized offerings and financial wellness tools, driving customer acquisition, retention and lifetime value. For instance, by mining debit card data, banks can gain insights into spending habits that they can share with customers or incorporate into personalized offerings. All these insights will help banks fully integrate customers’ digital lives into a single, multipurpose platform and enable them to manage money, credit, insurance, income and expenditures in a simple, streamlined way.
AI is also seeing widespread uptake, with 77% of industry respondents either already implementing AI projects or experimenting with pilots. The industry will shift from a system based on historical data to one driven by AI-fueled predictions. AI will also be crucial for improving cybersecurity, especially as digital banking increases.
More than half of respondents (57%) are implementing or piloting process automation systems. Organizations are using the new machine to rewire core internal processes, including customer onboarding, loan origination, loan servicing, compliance, marketing/customer retention and cybersecurity/fraud detection.
The augmentation trifecta: AI, automation, analytics
Respondents were asked about the progress they’d made in implementing a variety of technologies. (Percent of respondents)
Base: 287 senior banking and financial services executives Source: Cognizant Center for the Future of Work Figure 3