AI is Accelerating These Trends – Are You Ready?

The good news is that, by leveraging advancements in artificial intelligence, FIs can streamline processes, manage risks effectively, and deliver tailored experiences that meet the diverse needs of their clientele.

nCino works with over 1,800 FIs, helping them modernize their businesses through our all-in-one cloud banking platform. Based on conversations with many of our customers, three key priorities for coming years have emerged, and it’s clear that artificial intelligence (AI) will play a pivotal role in each.

Efficiency

When it comes to priorities, efficiency is the most important. This is one reason FIs are investing in AI and automation. When leveraged strategically, automated processes can help FIs improve consistency, maximize profitability, and deliver real-time insights, creating a better experience for both customers and employees at a lower operating cost.

Generative AI streamlines analysis by automating the retrieval of relevant data points and crafting comprehensive reports in a fraction of the time compared to manual methods.

One example of this is nCino’s Banking Advisor, a banking focused, Generative AI solution designed that streamlines banking processes and provides a modern, digital banking experience for financial institutions.

In the near future, we predict FIs will use AI such as Banking Advisor to improve accuracy and productivity by reducing manual processes and redundant data entry, giving employees more time to focus on strategic, value-adding tasks, such as deepening relationships with customers and managing concerned credit facilities more effectively. Streamlining processes and improving efficiency will also help FIs reduce costs as they grow and scale their institutions, which will be key in the coming years.  

Risk Management

AI is revolutionizing the financial services industry, and risk management is no exception. By analyzing large volumes of data, AI can help identify and mitigate potential risks and proactively provide early warning indicators before traditional analytics would call them out. Through the automation of tasks like data collection, analysis, and reporting, this will free up valuable human time to focus on the decisions and actions required from this data. With AI, financial institutions can stay ahead of risks and protect their interests.

One example of this is nCino’s Continuous Credit Monitoring Solution, which has been adopted into M&T Bank’s operations. By leveraging Rich Data Co’s explainable AI platform, the solution is designed to bring transparency to every decision, giving M&T more comprehensive insights into their operations. This solution is set to transform how institutions manage credit risk and loan performance across their portfolios.

As AI technology evolves, we can anticipate a myriad of innovative applications in the field of risk management. The challenge will be ensuring that the regulators are on board with and setting the parameters by which decisions resulting from AI generated predictions and insights are not harmful to the banks' balance sheet and to customers themselves.

Experience

Customer experience will always be a top priority for FIs, and they have recognized the potential of AI in delivering tailored customer experiences that drive satisfaction, foster personalized services and interactions, and unlock new growth avenues.

Using AI-powered solutions can accelerate workflows, minimize human errors created by multiple manual entries, and boost overall operational efficiency, which also improves the employee experience. At the same time AI can help power a ‘segment of one’ experience digitally by providing the right insights, prompts, indicators and actions to customers based on their unique profile, history, goals, and financial performance. The possibilities to make digital banking more human are finally enabled by the rapid advancement in AI.

Looking Ahead

To maintain a competitive edge, financial institutions must find new and innovative ways to prioritize efficiency and risk management, while still creating personalized experiences. As we look ahead, it’s clear that technology and AI will be the driving forces empowering financial institutions to achieve their goals and unlock value in solutions, productivity, and experiences that were not possible before.