Tigran Safari, Client Success Manager

October 30, 2024

AI isn’t some far-off sci-fi concept anymore. It’s here, and it’s coming to a bank near you! Listen to the latest from Tigran Safari and Chris Clements on this month’s Banking Podcast from The Kafafian Group

We’ve spent a significant part of our journey working with investment, commercial, and community banks, learning that the tech behind them is as fundamental as the vaults holding the money. You don’t just slap together a few servers and hope for the best. It’s like baking the perfect cake: too much compliance makes it too dense, too little security, and, well… let’s just say nobody wants a cake that crumbles.

We’re deeply passionate about our clients, whether they’re tellers or decision-makers, and their experience and security are always at the forefront. I’ve been doing everything short of wearing a cape to keep bad actors out of these highly regulated industries.

While we aren’t AI wizards, we’ve spent enough time with it to recognize its potential in banking. Think of AI as the ultimate multi-tool; it’s versatile, but you must know which part to use and when. Recently, we discussed this on a podcast with The Kafafian Group, and let me tell you—AI isn’t some far-off sci-fi concept anymore. It’s here, and it’s coming to a bank near you!

Before you get too excited about AI swooping in and solving all your problems, we should acknowledge that there are some risks and challenges involved. The follow-up blogs will discuss the risks and considerations when adopting AI in banking. We are preparing for a road trip: AI is the high-tech GPS, but you still need to keep your eyes on the road!

AI in Banking: It’s Not Just Smoke and Mirrors

AI is pretty much the superhero banking didn’t know it needed. It’s not just about making things faster (although who doesn’t love that?) – it’s about transforming how banks operate, talk to you, and solve problems. But, (and this is important!) banks must consider AI as part of the augmented business and tech strategy. Imagine hiring a sous-chef – you don’t expect her to run the entire kitchen solo; she is there to help the existing team cook up something better.

Banks that win with AI do a few things exceptionally well:

• They explore what AI can do.
• They get their staff AI-literate (think of it as AI 101: Not Just for Tech Nerds).
• They focus on areas where AI can add value – whether it’s customer service, security, or automating the stuff nobody likes doing.

If you’re running a community bank, now’s the time to think about how AI can be your secret sauce. Whether boosting your customer service, strengthening security, or taking over routine tasks (bye-bye, paperwork!), AI can help level the playing field with those big banks.

AI and the Millennial Dilemma

Let’s talk about Millennials and Gen Z for a second. The tech-savvy label doesn’t always fit; they just expect technology to work seamlessly in the background of their lives. Here’s where community banks can level up with AI. Challenger banks and larger commercial institutions are already ahead, offering slick apps and intelligent solutions that grab attention. Community banks? Almost, but not quite there yet.

AI can help bridge that gap by offering the personalized experiences new generations crave. And here’s the real kicker: AI can even steer the bank’s marketing message, showing potential customers how unique their local bank has become. From personalized offers to intelligent customer insights, AI becomes the “nudge” that directs the right message to the right person, especially for a generation that expects convenience at their fingertips.

Filling the Gaps

Another big gap that AI can fill? Staffing dilemmas. Community banks often run lean operations – a frequently natural course of business. But here’s where AI shines. AI can manage routine customer interactions, streamline processes, and give staff breathing room. Imagine this: AI-powered chatbots can handle basic questions or transactions rather than customers waiting in line for simple queries. Meanwhile, the human staff can focus on the complex, relationship-building tasks that AI simply can’t replicate. It’s a win-win for banks trying to do more with less.

AI and Sales

When making a sale, AI is like that friend who knows what you want before you do. It can dive into customer data, connect the dots, and tell banks, “Hey, this person’s been eyeing a new home – maybe it’s time to offer them a mortgage.” The best part? It does it with the precision of a master fortune-teller, way better than old-school methods.

Imagine a customer visiting a branch asking a teller about new products. “Don’t get flustered!” says the AI ChatBot to the teller, and… Boom! It has already figured out the next move. “How about a new useful investment account?” suggests the teller, empowered by the customer’s recent behavior, financial habits, and history. In the hands of AI, banks can offer these personalized suggestions like a well-timed gift – perfect and maybe just what they need.

Inspire your platform and teller personnel to comfortably offer the lines of products you worked so hard to implement, and remember that AI isn’t just a one-trick pony. It learns about customers over time, nudging your team to offer additional services when needed, ensuring the relationship stays strong. It resembles a helpful waiter who remembers your favorite dessert and casually suggests it after the main course – smooth, right?

Leveraging AI in Cybersecurity

Do you want to guess the weakest link in any bank’s security? I will let you in on a secret – it is its people. That’s right, it’s not the fancy tech; it’s that one guy who clicks on every suggested web link from the wrong email. Enter AI, the bank’s improved bodyguard service. It’s not just watching for suspicious activity – it’s actively training employees to avoid falling for phishing scams and keeping your defenses and reputation intact.

Phishing attacks make up most of the security breaches at banks. AI steps in like a detective, staging fake, socially engineered phishing attacks and showing banks exactly where their employees fall for it. Think of it as practice runs before the actual criminals show up. And what’s more, AI customizes training based on these tests, making it way more effective than the “here’s your annual training video – good luck!” approach. Banks need to weave AI into their cybersecurity fabric to monitor threats, predict risks, and keep staff sharp with continuous cyber awareness. In a world where hackers are constantly leveling up, AI is the secret weapon to keep the vault doors tightly shut.

Managing Third-Party Vendors

Most banks rely on third-party vendors for tech, customer services, and more, which act as banks’ sidekicks. But these partnerships can bring risks. Luckily, AI steps in here, too, acting like the Sherlock Holmes of vendor management.

AI platforms sift through customer data across different platforms, offering banks insights that help craft more personalized experiences. Imagine AI telling banks, “Hey, this customer seems interested in a new credit line – let’s make a move!” Plus, AI doesn’t just stop at customer intel; it makes sure vendors keep data secure, monitoring them like a hawk for any funny business. And if vendors are trying to cut corners on data security? AI catches it before things go south. It can even handle vendor audits automatically, freeing up bank staff for more important things, like coffee breaks or, you know, doing their actual jobs.

Ask your vendors about their AI roadmap – they won’t be surprised you did – since many already offer AI-powered products and implementations. This will allow them to keep you as a client and improve their bottom line.

Reality Check

We’ve reached a moment in the banking industry where AI isn’t just a nice-to-have but a must-have. Whether you’re a big-shot investment bank or a beloved local community bank, AI can improve everything from customer experience to cybersecurity. By building AI knowledge across teams and investing in the right tools, banks can unlock new levels of efficiency, security, and customer satisfaction.

If you’re at a community bank feeling like David against Goliath, it’s time to pick up AI as your slingshot. The tools are there to help you compete with the big guys, offering personalized service, security, and automation that keeps customers happy. Now’s the time to embrace AI – not as a tech trend but as the competitive advantage it truly offers.

References:

• https://martech-news.com/how-community-banks-can-use-ai-to-improve-sales-and-marketing/?playlist=c3fe98c&video=5a9d662
• https://www.americanbanker.com/news/implementing-ai-powered-technology-at-a-community-bank-chrissy-oelke
• https://www.bankdirector.com/article/practical-ai-considerations-for-community-banks/

About the Author

Tigran Safari is a highly accomplished IT and Client Experience Leader with a profound track record in driving organizations toward exceptional B2B client service and satisfaction. Boasting an extensive background in information security and IT management, backed by several patents in virtualization and storage, he has demonstrated remarkable skill in blending technical expertise with a client-centric focus. This unique combination has enabled him to deliver innovative solutions that meet client needs effectively. Tigran is recognized for his visionary leadership, startup experience, and adeptness at conceptualizing and executing strategies that enhance client experience, drive business growth, and forward continuous improvement. 

Throughout his career, Tigran has shown an exceptional ability to build and lead high-performing teams, foster cross-departmental collaboration, and advocate for customer-centric initiatives at an executive level. His approach to leadership is informed by data analytics, which he leverages to make informed decisions and drive client engagement strategies. As a committed professional to transforming client experience, Tigran integrates cutting-edge technology, personalized service, and strategic leadership to meet the industry’s evolving demands. 

Tigran’s professional journey includes pivotal roles at CISO Global, Atlantic Technology Systems, DeskCenter USA, Kubisys, Syncsort, and cfX, where he has left a significant impact in areas ranging from client experience management and solutions architecture to regulatory compliance and risk management. Beyond his professional achievements, he is an active community member, serving as head coach for the local soccer High School varsity team. He is also a former chess master and is fluent in three languages. 

The post AI in Banking: No Longer Just for the Big Banks appeared first on CISO Global.

*** This is a Security Bloggers Network syndicated blog from CISO Global authored by hmeyers. Read the original post at: https://www.ciso.inc/blog-posts/ai-in-banking-no-longer-just-for-the-big-banks/