NEW YORK, Dec. 11, 2019 /PRNewswire/ -- Nearly all
(97%) commercial banks are using artificial intelligence (AI),
according to new research from Genpact (NYSE: G), a global
professional services firm focused on delivering digital
transformation; however, most financial institutions are not
implementing the technology effectively for competitive
advantage.
More than half of the survey respondents (51%) are using AI
simply for point solutions and individual tasks, with 27% testing
in pilots, and only 19% leveraging it across the bank holistically.
With pressures mounting from fintechs and other non-bank
disruptors, these AI trials raise concerns about how effectively
commercial banks can use the technology to improve customer
experience (CX) and better compete.
Genpact's study, Commercial Banking: The Customer
Experience Imperative, surveyed 500 senior
commercial banking executives on the industry's changing landscape.
The research reveals that while many banks understand the growing
importance of CX and AI, questions remain regarding their ability
to use AI for greater value and mine data effectively to embrace
digital transformation and enhance service.
The good news is most banks are optimistic about the future.
Two-thirds of respondents say they expect to use AI across their
organization in the next 12 to 18 months, compared with fewer than
one in five today. Yet, some executives surveyed seem hesitant
about whether AI will deliver on its promises to drive new
personalized services to improve customer experience. Notably, 13%
say their organizations have no plans to use AI in the next 12 to
18 months, up from 3% today, which may suggest a lack of confidence
in current pilots and long-term execution.
"With digital technology opening new access to sales and payment
data, non-traditional players have leapfrogged many established
commercial banks in delivering quality customer experiences," said
Mark Sullivan, global business
leader, Banking and Capital Markets, Genpact. "Banks must do a
better job at anticipating and quickly incorporating CX
innovations. AI can be a major driver given its ability to
interpret droves of data to develop highly-tailored solutions that
businesses want."
Genpact's research also looked at
fintechs' impact on the commercial banking industry.
Opinions are split: nearly half of the executives surveyed perceive
fintechs as potential partners (cited by 56%), with others saying
they are a competitive threat (44%). Most financial institutions
are responding to this with a combination of competitive and
adaptive measures. Genpact's research shows many banks are ramping
up their value propositions with enhanced customer experiences such
as more responsive credit assessments.
Other commercial banks are unbundling their offerings and
considering a "platform strategy" to provide customers with a
channel for individual products in one place, including services
provided by other companies. While "banking as a platform" may be
effective to compete with fintechs, only 20% of respondents say
they have a holistic strategy in place. And, just a little more
than a third (35%) have mapped the customer journey across both
treasury and lending product lines, which the study identifies as
key growth areas.
"Our research shows that while leading commercial banks
overwhelmingly see CX as a competitive advantage, many others are
in danger of missing opportunities to build deeper customer
relationships," Sullivan said. "Few financial institutions are
mining data effectively across products and other information
sources to develop personalized services – which is exactly what
fintechs and techfins deliver today."
Genpact's commercial banking research echoes similar findings in
the company's recent Banking in the Age of
Instinct report, which looks ahead to future trends in the
industry. Commercial banks must connect the dots among data points
and deliver more valuable insights to customers, a critical need
for competitive growth.
To learn more, visit Genpact's website to access the complete
report, Commercial Banking: The Customer Experience
Imperative.
About the study
Genpact worked with Wakefield Research
to conduct a global study between July 30
and August 28, 2019, via an email invitation and online
survey. The study represents views of 500 C-suite and senior
executives at commercial banks, with the majority working at
companies with assets under management of $10 billion or more.
About Genpact
Genpact (NYSE: G) is a global
professional services firm that makes business transformation real.
We drive digital-led innovation and digitally-enabled intelligent
operations for our clients, guided by our experience running
thousands of processes primarily for Global Fortune 500
companies. We think with design, dream in digital, and solve
problems with data and analytics. Combining our expertise in
end-to-end operations and our AI-based platform, Genpact Cora, we
focus on the details – all 90,000+ of us. From New York to New
Delhi and more than 30 countries in between, we connect
every dot, reimagine every process, and reinvent companies' ways of
working. We know that reimagining each step from start to finish
creates better business outcomes. Whatever it is, we'll be there
with you – accelerating digital transformation to create bold,
lasting results – because transformation happens here. Get to know
us at Genpact.com and on LinkedIn, Twitter, YouTube,
and Facebook.
Media
contacts:
Danielle
D'Angelo
Genpact Media
Relations - Global
danielle.dangelo@genpact.com
+1
914-336-7951
|
|
Siya
Belliappa
Genpact Media
Relations - India
siya.belliappa@genpact.com
+91
9823133365
|
|
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SOURCE Genpact