Here's How Banks Can Leverage AI and OKRs for Digital Transformation and Growth

According to Forbes, AI has created a transformational change in banking:

“There are so many different applications for AI and they are increasing daily. Essentially, AI has three major technologies: cognitive computing, machine learning and natural language processing. As a result of these digital tools, there has been a significant shift in the banking industry. Bankers are using AI to improve their relationships with customers.”

The Finance industry Banking and Financial Services have gained significant traction over the past decade, bringing in significant investments and transforming how people manage their finances. 

Artificial Intelligence (AI) brings the advantage of digitization to banks and helps them meet the competition posed by FinTech players, according to Businesswire. The fintech market reached $131.95 billion in 2022 which is expected to grow to $324 billion by 2026. For traditional banks, this highlights the importance of digital transformation.

It’s no surprise that AI has had a tremendous impact on the traditional banking environment. According to joint research conducted by the National Business Research Institute and Narrative Science in 2020, about 32% of banks are already using AI technologies such as predictive analytics, voice recognition, and various others, to have a competitive advantage in the market. In addition, Businesswire notes that the global AI in banking market size was valued at $3.88 billion in 2020 and is projected to reach $64.03 billion by 2030, growing at a CAGR of 32.6% from 2021 to 2030.

However, as banks continue to leverage AI, there are challenges to address, such as ensuring data privacy, maintaining ethical AI practices, and navigating regulatory compliance. Striking the right balance between innovation and responsible AI usage is crucial to reap the full benefits of AI in the finance landscape. As with any transformational change, an effective structure is needed to manage the shift, and that’s where OKRs (Objectives and Key Results) come in.

Let’s look at a few OKRs Examples for Banking Firms that delve into how AI and digital transformation can shape an effective, future-oriented strategy.

If you're curious about what are OKRs and why banks should use this framework, see our full article here.

OKRs Examples for Traditional Banking

The digital transformation of banking, fueled by the adoption of AI and other advanced technologies, presents several challenges that banks need to address to ensure successful and responsible implementation. 

However, the implementation of these solutions requires that banks are capable of handling customer concerns. As banks introduce AI-driven solutions, customer acceptance, and trust in these technologies become crucial. Banks must educate their customers about the benefits and safeguards of AI while being transparent about how AI is used in decision-making. 

Forbes notes that “The future’s looking bright for AI in banking, however, not everyone is convinced this new technology is without its issues. Many are concerned about the closure of bank branches, consumer fear of adopting digital tools and possible increased risk of data breaches.”

In the examples below, we address challenges such as ensuring data privacy, maintaining ethical AI practices, and navigating regulatory compliance. These examples can help banks navigate the fears around AI in banking and improve their relationships with customers. 

OKR Example 1: Ensuring Data Privacy Through Digital Transformation

Banks handle vast amounts of sensitive customer data. The use of AI in processing and analyzing this data introduces concerns about data privacy and security. Ensuring that customer information is adequately protected from unauthorized access/breaches is of utmost importance. Compliance with data protection regulations, such as GDPR or CCPA, becomes critical, as failure to do so can lead to severe legal consequences.

Objective: Enhance data privacy and security measures to safeguard customer information and build trust.

Key Results:

KR 1: Reduce the average time to detect and respond to data breaches by 50%(utilizing AI-driven threat detection and real-time monitoring systems)

KR 2: Reduce the number of major compliance incidents from 38% to 20% over the next six months.  

KR 3: Launch 1 pilot for regulatory reporting and data sharing,

KR 4: Achieve a customer satisfaction rating of 85% or higher in AI transparency surveys. 

KR 5: Reducing the time spent on compliance checks by 30% and achieving 95%, by implementing an AI tool for identifying potential violations.

Dive into our full article, where we have detailed two more OKR examples:

1. OKRs for Maintaining Ethical AI Practices
2. OKRs for Navigating Regulatory Compliance

We've also talked about challenges that can hinder banks from achieving their OKRs.

Fitbots Can Help You Achieve Your OKRs

At Fitbots, our mission is to help companies drive transformational growth with OKRs, KPIs, and initiative/milestone management, by simplifying how they connect their mission to metrics. Fitbots has worked with over 5,000+ teams, helping them get OKRs right and tracking powerful insights on our OKRs software.

With Fitbots, your teams can achieve 10X more by setting & tracking the right outcome metrics, save an average of 450 hours each quarter on report-making and clumsy powerpoints and increase transparency by 100%. We have consistently rated as a High Performer on G2 and are the proud recipients of multiple G2 badges. Our top-rated offerings include:

• 5-Step Method to reduce Strategic/Company OKRs writing to a matter of hours, helping leaders focus on action rather than verbose discussions
• AI-Assisted OKR Writing to reduce the time spent by teams in crafting effective OKRs that reflect company strategy
• Alignment and Misalignment Boards that ensure complete alignment such that there is no wastage of time, effort, revenue
• OKRs and KPIs management alongside a vast number of integrations
• Progress Boards, Trends Boards, Insights, and Reports at the organization and team level for effective decision-making and performance improvement
• Individual reports and insights to support performance-related conversations
• On-demand OKR Coaching and Certification 

Click here to book a call with our OKRs expert on how we can help you get OKRs right, and manage them with powerful insights.