Financial institutions across the globe are leaning ever more heavily on technology solutions to streamline processes. One technology, however, stands out as having by far the most applications within this sector: AI. And while it’s no secret that the finance industry hasn’t exactly been at the vanguard of AI implementation, they are now starting to play catch-up. That’s because the benefits of adoption are many and varied. They include:
- Customer service
- Investment predictions
- Algorithmic trading
- Loan underwriting
- Network security
- Fraud prevention
And the list goes on and on. But for today’s purposes let’s take the first application on that list—marketing—and look at how fintech marketers can leverage AI to increase profits.
AI and predictive analytics
Just as the ability to glean market insight based on past trends is integral to success in the financial sector, so too is it necessary for any successful marketing initiative. What AI does is equip today’s marketers with the insight they need to properly analyze social-media behavior, mobile-app usage, web activity, and past campaign interactions.
The truth is that in this new omnichannel world, with seemingly endless terabytes of data moving through cyberspace every second, machine-learning is the only tech that can shoulder the burden of analyzing these mass amounts of data.
AI and a shift from a product to a customer-centric marketing approach
This is particularly apt for those B2B fintech companies grappling with one of the great conundrums of modern industry: how do we shift advertising focus from our product line to our customer? Moreover, how do we offer our customers the personalized service they crave without relying on a one-size fits all product catalog?
The solution comes in part with the help of AI and machine learning. Fintech marketers can and are using this tech to tailor services to their customer needs in real time. Specifically, many banks and credit unions are using AI software solutions to monitor customer interactions, be it via social media, website visits, blog views, email marketing, etc.
The software not only reads this data but puts it into context for the marketer. It can then predict with general accuracy what the customer’s next move is likely to be and tailor recommendations the marketer can then use when advertising to that customer through that specific channel.
The options are great and vary widely. The AI engine might tell the marketer now is the time to send a certain personalized email to the customer, or a customized PPC advertisement, or any number of other offerings that provide intrinsic value to the customer.
AI and improving customer retention
Above we discussed how AI engines are revolutionizing predictive analytics. Reading these customer signals goes to the heart of retention. How financial institutions can more effectively get their customers to stay customers is a crucial aspect of any fintech marketing strategy.
For these purposes, AI proves invaluable due to its ability to not just analyze customer interactions across various channels, but identify which customers are most at risk of leaving. AI can analyze all interactions and determine, say, that the customer is frustrated with their bank fees. This then triggers a recommendation to the customer’s specific branch, who can then initiate an outreach call or tailor a new offer to that specific customer.
AI and personalization
It’s not just banking customers but modern customers of all stripes that crave a personalized consumer experience. The good news is that modern financial institutions are acutely aware of this. It accounts for banks’ investment in such digital channels like mobile apps, chatbots, and live-chat functions. This allows banks to meet their customers where they are and appeal to them instantly, directly, and on a personal level.
Fintech marketers in various businesses can leverage this trend by using AI to more effectively personalize offers and advertisements. They can use AI’s automated decision-making capabilities and integrate that with CRM info to create the perfect personalized offer.
Say an E-invoicing company is looking to expand its customer base while at the same time appealing to the needs of individual targets. By feeding data gleaned from interactions into AI software, the company can tailor specific packages and services to each individual’s needs, be it the sole proprietor of a home-based business or a Fortune 500 company.
The result would be that, with the help of AI, marketers can have these tailored advertisements ready to deliver to the customer far quicker than they ever could without an AI solution.
Above we outlined a number of benefits to AI that marketers can utilize to increase profits. The overarching benefit to AI, though, comes in its ability to give financial institutions a 360° view of their customer. Customers interact with their banks across many channels these days, and AI can give customers the seamless experience they crave across these multiple touch points.
It’s for these reasons that AI isn’t merely an optional tactic for the modern finch marketer’s, but a mandatory one.