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80% of Financial Institutions define AI as a key technology

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According to the findings of an NTT DATA study, which is available here, you Financial services decision makers agree that the implementation of Artificial Intelligence (AI) will be the main factor of competitive success in the coming years. In fact, 83% agree that AI is creating new ways to differentiate offers and win customers, driven by access to unique data sets; however, obstacles remain and technology adoption is delayed.

Respondents indicate that: implementing technology (55%), creating a startup culture in established businesses (51%) and organizational change competencies (43%) are the main challenges for AI in implementing personalized proactive services . Despite these obstacles, financial institutions (FI) have to find a way to overcome them.

Especially in view of the COVID-19 pandemic, consumers are increasingly looking for digital financing solutions and applications, which anticipate their needs and offer proactive financial guidance.

“The application of more AI to the main activities of financial institutions is challenging,” said David Sanz, of NTT DATA Company. “The hyperpersonalized use of data analysis, powered by AI, is a path that financial institutions need to follow because, ultimately, it can provide a superior customer experience.”

80 of Financial Institutions define AI as a key technology

According to recent data, there are several key findings that apply to financial institutions regarding the implementation of AI in their organizations:

  • The main challenges for financial institutions to attract and retain clients are the use of AI to offer personalized advice to individual clients;
  • build trust with customers;
  • combat competition from fintechs and technology companies;
  • the limitation of personal interactions with the client;
  • the slowness in launching new products.

“The next step in creating the true digital bank of the future is the most effective use of AI and other digital technologies to promote engagement in each customer’s life,” said Kaz Nishihata, Executive Vice President, NTT DATA. “Financial institutions around the world will have to focus on AI, big data analytics and processing power – as well as making organizational change initiatives and strategic partnerships – meet customer needs and truly differentiate themselves” .

To explore how AI can enable financial institutions to attract and retain customers in a digital world, NTT DATA surveyed 4,807 consumers and 476 senior banking executives, brokerage, capital markets, wealth management, and cards and payments in the US, UK, Germany, Spain, Italy, Japan, Brazil and Mexico in December 2020.

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