Transforming customer engagementusing Artificial Intelligence
Artur Agostinho
The Financial Services Landscape is Transforming
HOTEL COMPANY THAT
DOESN’T OWN ROOMS
BANK THAT DOESN’T
OWN BRANCHES
INVESTING WITHOUT
ADVISORS
Global financial institutions perceive threat of disruption from
several angles
DIGITAL IS DISRUPTINGEVERY INDUSTRY
TECH
COMPANIES
STARTUPS
TELCOS
RETAILERS
BANKINGLOANS AND CREDIT
INSURANCE
INVESTING AND
RETIREMENT
WEALTH
MANAGEMENT
Source: EFMA-Infosys Feb 2015 Digital Banking Report
BLOCKCHAIN
TAXI COMPANY THAT
DOESN’T OWN CARS
“ N OW P L AY I N G I N T H E B A N K I N G I N D U ST RY I S A N E V E R - E X PA N D I N G H O S T O f D I G I TA L N AT I V E S , I N C LU D I N G G O O G L E , A P P L E , FAC E B O O K , A MA Z O N , A L I B A B A , A N D OT H E R L A R G E P L AT F O R MS L I K E U B E R A N D A I R B N B ”
GAFA are disrupting banking services…
Massive volume of Data, Advanced in AI, Power of Cloud
DATA & AIOPEN BANKING
& PSD2
CUSTOMER
ENGAGEMENT
The Digital Transformation pillars in Financial Services
Intelligent BankPredicting what’s next for the customer
seamlessly
Immersive BankProviding frictionless consistent customer
experiences
Traditional BankBank provides multiple channels for
trusted interactions with clients
Intelligent automation
API economy
Natural interaction BOTs
Predictive decisions
Personal finance manager Robo-advisory
CRM
Social
Cloud
eCommerceAnalytics
New branches and ATMs
Real-time marketingMobility
Payments
Deposits
CreditsLoans
The ultimate goal is
the provision of a
single experience
for customers
through one
interface – one
seamless end-to-
end journey to the
desired customer
outcome.
5
“Open” – The scary new word in Financial Services
Technology
• Allow software
components to
communicate and
exchange information.
• Specifies the connection
mechanism, data and
functionality that are
made available
Operations
• Enhance the opportunity
for new partnership
approaches with third
parties
• Increase operational
efficency by simplifying
internal IT systems and
processes
Business
• Explore new business
models and integrate
new players, startups and
other industries
• Create an opportunity for
each player to build a
better offers, and
consumers make better
choices
The new banks are ecosystems
BBVA – API Market Credit Agricole – CA Store Deutsche Bank – API Program
… the “Digital Leaders” are following the same path
1. COMPLIANCE ONLY
PSD2 Open Banking
Trad
ition
alSi
mila
r to
GAF
A
3. SELLINSIGHTS
2. “PRODUTIZE” ACCESS
4. VALUEAGGREGATOR
PRODUCT & SERVICES OFFER
VALU
E C
HAI
NP
ARTI
CIP
ATIO
NLE
VEL
BECOME AN “UTILITY”
UP TO - 30% REVENUE
BECOMEAN“EVERYDAY BANK”
+20% REVENUE
3. SELL INSIGHTS
Monetize access to data, insights and
advisory services
Set up as AISP and / or PISP and
increase the financial offer
1. COMPLIANCE ONLY
Comply with mandatory requirements
Allow mandatory access to 3rd party
Provide the basic service APIs
2. “PRODUCTIZE” ACCESSDevelop a robust API platform
Allow granular access to data and monetize
that access;
4. VALUE AGGREGATOR
Create an ecosystem
Create a financial and non-financial
offer
Use new channels, integrated
technologies and advanced analytics
The choice banks need to do ina future of Banking as a Service…
In our view, the winners…will be those
financial institutions that realize the value of
their data and capitalize on it by employing
advanced analytics.*
*Source: Cognizant, “How Analytics Can Transform the U.S. Retail Banking Sector” 2011. ** TDWI , Halper, Fern, “Operationalizing and Embedding Analytics for Action” 2016
Forward-looking organizations are beginning
to realize that it is not enough to analyze their
data; they must also take action on it. To do
this, more businesses are beginning to
systematically operationalize their analytics as
part of a business process.**
Technology is Making Change PossibleThe Analytics Road is Taking Shape
CognizantTDWI
Focus on forecasting future events and behaviors
• Predictive Analytics
• Data mining
• Big data analytics
• Location intelligence
The Data Challenge in Banking
YEARS of DATA
COLLECTION
Mounds of data has
been collected over the
years and stored on
tapes / discs in vaults -
inaccessible
STATIC
INFORMATION
Today’s analysis is
based on a data extract,
a “snap shot” in time;
analysis must be
redone, reconfigured,
and/or restructured
when data updates
NON STANDARD ETL
Different formats for
the data are used
across the lines of
business; same data
elements named
differently
SILOED
INFORMATION
Data resides across all
the different lines of
business and most, if
not all, is unconnected
CUSTOM ANALYTICS
Differing models and
analysis tools are
typically used by each
LOB, and data is
accessed at different
times leading to
different versions of
the truth
TECHNOLOGY
MANAGED
Business units need to
make requests for data
from IT/Ops for their
analytics needs leading
to delays in time to
value
Data Challenges
The Implications
Business Vision
Impairment
Vulnerable to
Competition
Lack of Customer
Insight
Inability to Timely
Response
Lack of Agility
and Growth
Unreliable
informationCompliance and
Regulatory Risk
Unnecessary Cost
and Waste
Baseline Analytics
Advanced Analytics
Predictive Analytics
Operational Reporting Sales and Marketing Performance Customer ValueShare of Wallet
Next Best ProductPropensity ModelsCustomer key momentsPerspective of future value
Data patterns that may predict future events we can act on Churn anticipation Future event predictionAnticipation of customer decision process
Data is the new asset class…Regulations are imposing data governance and data protection mechanisms…
… Digital Transformation will be supported on the evolution of the analytical model for
predictive system that generates value in the bank relationship with customers
How AI is transforming
the future of Fintech
Faster decision-making and deeper
learning (recognize predictors of financial
turbulence)
More intelligent about peoples spending
habits, health, lifestyles
Predict what people needs will be for
different scenarios of spending and
saving
Trust biggest challenge for Fintech
Smarter computers, algorithms, big data and dedicated AI systems
79% of banking, insurance, and fintech CEOs believe customer
expectations are shaped by hyper-relevant, real-time, and
dynamic experiences encountered across any industryAccenture – Banking as a Living Business
Third-party
APIs
INTELLIGENT
EDGE
Blockchain
Automated
workflows
Mixedreality
Bots
IoT devices
Naturalvoice
Mobile apps
ATM/kiosks
INTELLIGENT
CLOUD
Risk
management
Security
Customer Bank
Real time Real time
The most comprehensive set of technologies
Digital Connected Bank
Digital Transformation & AI – Smarter Banks
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