AI Streamlining Check Payments — Added Value for Data Analytics?
- Today's digital landscape demands advanced tech for bank customers
- Data is now a tool for elevated customer service
- Banks using "data as a customer service tool" have seen revenue increase
We've made this important point in many earlier posts and news items we've shared: In today's digital landscape, banks must leverage advanced technologies to meet the ever-rising expectations of their customers -- the market has made it clear that public and business accounts tend to take their business to institutions that offer the most useful "bells and whistles."
A recent report from BAI explores in depth how data analytics and artificial intelligence (AI) are revolutionizing the customer experience in banking. The primary areas they explain:
Through their multiple touchpoints with customers, banks are aided by three distinct types of data, including: transactional data, behavioral data, and demographic data.
Data as Customer Service Tool
By analyzing this comprehensive customer data, banks are able to gain deep insights that allow them to "hyper-personalize" their offerings.
As the BAI article states:
Data can often reveal what customers want before they even ask for it. By using analytics, banks gain a holistic view of their customers, enabling them to provide more tailored services while ensuring efficient operations.
More specifically:
AI is further revolutionizing customer experience in banking by making services faster, more efficient, and more secure. With the capability to process vast amounts of data, AI can offer personalized recommendations based on each customer's financial profile.
The integration of data analytics and AI empowers banks to deliver exceptional, personalized experiences that drive customer satisfaction and loyalty. In fact, BAI cites a case study where a top-tier global financial institution was able to generate $33 million in annual revenue and a 25% increase in customer lifetime value through these transformative technologies.
Automating Payments with AI = More Data
As noted in the article, one of the major roles of AI is streamlining processes:
By automating routine tasks like loan processing, credit assessments, and report generation, AI frees up human bankers to focus on more complex customer interactions, improving service quality and efficiency.
We are seeing this in action, as banks have turned to AI to streamline check processing. While the goals are to create a more efficient process and eliminate the need for manual intervention, many banks are benefiting from the data that is being created. Prior to leveraging AI, standard OCR solutions provided around 80-85% accuracy and read rates. When applying the expression "garbage in, garbage out," the data previously created was unreliable.
Fast-forward to today: The 99.9% accuracy and read rates provided by AI technology enable banks to utilize the payments data for downstream BI systems -- creating more value. Checks remain a major payment channel, and investments in technologies to automate and streamline the process are more valuable than ever.