AI offers Fintech much more than mitigation

Ed Wallen is the CEO of C&R Software, whose mission is to humanize collections via its renowned cloud-based, end-to-end platform.

Technology is changing our lives, expanding the scope of what we once perceived as possible, and the financial industry is no exception. Every stage of an individual’s financial journey has the ability to be digitized for a more accessible, efficient and personalized experience. As artificial intelligence and machine learning become household terms, it’s no longer a question of “does this platform offer this technology?” Rather, it’s, “How does the organization use it to improve the user experience?”

We’re seeing a wave of marketing efforts from software vendors highlighting their use of artificial intelligence. From a bird’s eye view, it appears that they are pushing these buzzwords, selling their products, services or a specific campaign to inexperienced buyers who may lack a transparent understanding of this technology. But there is an obvious difference between what these software makers are pushing and what the industry really wants. Obviously, we have the tools, resources, and qualified people to build advanced models, but it depends on whether we can get them up and running to be fully operational.

AI has given the financial industry a new depth of customization, including the ability to predict any number of outcomes that favor customer care. Through the identification and analysis of customer payment behavior or criteria in their record, it is an intuitive process that determines how best to target the customer to specific services. This is now a fundamental pillar upon which any business in fintech must be built, but many miss the mark when it comes to the value of understanding the archetype of their target audience. It’s important to have a strong sense of your audience’s characteristics to determine the actions you want to take and, most importantly, the results you’re targeting.

There are undoubtedly various financial professionals and organizations that still rely on outdated methods to provide the same level of service. Clinging tightly to this approach essentially makes it impossible to effectively manage such a large variety of data – a challenge in itself – not to mention the added layer of customizing the experience to treat each customer in an appropriate and individualized way manner.

Most major banks and institutions work tirelessly to give their customers the best possible experience. Many of them build models that are relevant to their business, models that need to be updated frequently to stay functional and up-to-date. And consequently, these models require additional layers of technology to become operational. The industry is looking to machine learning to bridge the gap between stagnant models and intelligent, instinctive solutions.

When we look at collections and recycling, for example, the goal is to provide a lot of quick lift, and determine the right action for a particular customer using technology that seamlessly triggers said action. It is a branch of fintech that requires the use of AI with a personal touch – not just based on logic, but one that blends computer functions with human understanding. Too many solutions rely entirely on artificial intelligence or a human workforce to manage collections, but an effective offering must be a marriage of the two.

Like other industries that benefit, the financial services industry is gaining momentum due to the impact of AI. Whether it’s reducing an employee’s workload, providing data insights and driving real-time decision-making, or personalizing the user experience, the reach of this technology extends far beyond the leverage gained by simply requiring its use. We have the systems in place and the tools, resources and human intelligence to integrate AI and machine learning effectively into any model, but very few have mastered the art of doing it in a way that truly benefits the customer.

Ultimately, AI acts as a catalyst for customer-focused products and services. When used in place of outdated strategies, the ease felt by both the customer and the institution is undeniable and lasting. Those in fintech who master the intuitive use of AI will see the positive impact on their business, and see it grow as a reflection of the value felt by their customer base.

Let’s walk through some tangible practices and capabilities that are critical to implement to fully embrace AI in your industry. When looking more closely at an existing system or interface, there are some “must-haves” when it comes to the practical implementation of AI:

• Combine the capabilities of software with AI and the human touch. It is not enough to offer strictly digital solutions. These customers often need to speak to a human agent beyond digital self-service menus. While AI is a necessary component of an intuitive and predictive flow, it also helps to efficiently get an active agent on the line at the exact moment they are needed.
• Intelligent outreach and communication is unique to each customer. This will allow the customer to truly appreciate the opportunity to quickly find a solution via self-service within a scenario that applies specifically to their situation. For example, you can implement a chatbot capable of productive conversation.
• Establish an intuitive and user-friendly interface for the agent. Use AI to empower the agent to offer fully informed recommendations for each customer. Give them visibility into all accounts on screen, with the ability to summarize each conversation for future agents who may interact with the account.

By starting with these first steps, you will be well positioned to begin exploring all that AI can offer fintech in the short and long term.

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