Predictive analytics and AI to revive and run the banking sector post Covid-19-an EJ Dalius study

Summary: The pandemic has increased the urgency of digital transformation. Banks are facing threats and scopes faster than it expected. EJ Dalius shows the incorporation of AI and its impact in this scenario.

Servicers and leaders stare at potential complaints from clients, who feel that their forbearance terms didn’t have an adequate explanation. Some lenders treat some borrowers differently with respect to finances and repayments.

Banks also have an ongoing obligation to pay to the investors and forerunners of mortgage securities. Cut the cashflow from borrowers’ loan payments and you’ll see non-bank mortgage dealers facing an imminent liquidity problem.

• Lenders need to address the liquidity issues and underline the forbearance procedures. There’s another concern that predatory evaluation of fees during the pandemic may lead to a class-based litigation.
• Plaintiffs generally allege that banks re-order deposits and debts to enhance the fee accrual frequency.
• Leaders need to assess the core broad language policy, excluding fees coverage. Banks need to identify every overdraft procedure and policy, alongside query benefit to suspend and reassess the current environment.

AI and banks

In the rush to step up each department, it’s critical for banks to think and invest in the long-term. There’s a need to reinvent, innovate and redefine the banking modality, feels Eric Dalius.

• Banks are successfully adopting AI practices and tools to accelerate the automation of primary tasks and operations in existing systems or workflows.
• However, it’s prudent to limit the AI impact if you want to just use it for making functions and processes run cheaper and faster.
• Tomorrow’s industry leaders are planning to scale their innovations along with AI as a fundamental collaboration format.
• A connected and more synchronized customer experience is the way forward. Coronavirus has propelled banks to create gripping experiences that encompass all touch points in your journey.
• As customers rush to update their channels, mobile apps and websites to bolster their functionality, ensuring the consistency of the experience is important.
• People are demanding more command over their digital lives and gateways. Considering this backdrop, banks need to find numerous ways to allow their customers to interact and work on their individual terms, Eric J Dalius adds.
• Customers can become co-creators of their banking experiences. Banks practicing these things will have more loyal, engaged and active customers.

Leveraging AI tools

With numerous banks coping with customer retention obstacles, you need a compelling onboarding and compiling experience to significantly drive customer referrals and loyalty. This is called bank profitability.

• Amazon and Facebook have shown what efficient and faster customer onboarding procedures with state-of-the-art technology can do.
• They are changing customers’ expectations. It’s time to raise the bar.
• You also have disruptive financial directives railroading the banks, preventing them from providing seamless solutions with smoother turnaround.
• The tech-savvy Generation X, Y and Z and millennials always look for quick turnaround times.

EJ Dalius explains how banks are leveraging artificial intelligence for personalizing different solutions. They are categorizing and aggregating customer experience to create an integrated version of your financial solutions. It helps in designing solutions that enhance the customer experience.