How AI Can Help Banks Compete With Fintechs on CX

In today's fast-paced digital landscape, traditional banks are facing increasing pressure to stay relevant and competitive amidst the rise of innovative fintech startups. Agile fintechs are disrupting the financial services industry with technology-driven solutions that the offer convenience, personalized experiences, and seamless interactions that the next generation of customers have come to expect. In fact, they demand it: nearly 2 in 3 Americans want more AI in financial services and 60% believe AI will revolutionize financial services within the next five years. To remain competitive, traditional banks must embrace digital transformation and leverage artificial intelligence (AI) to enhance the customer experience.  

Understanding the Fintech Challenge 

Before diving into strategies for competing with fintechs, it's essential to understand the challenges traditional banks are facing in today's market. Fintech startups have gained traction by offering innovative solutions that cater to the evolving needs of consumers, such as mobile banking apps, digital wallets, and peer-to-peer lending platforms. These solutions are often characterized by their user-friendly interfaces, personalized features, and agility, setting a high bar for traditional banks to meet. Notably, 39% of consumers currently use fintech solutions and 37% of consumers currently list a fintech firm as the financial services provider that they trust the most.

Harnessing AI for Customer Experience Enhancement 

By leveraging AI-driven technologies, banks can gain deeper insights into customer preferences, streamline operations, and deliver personalized interactions that drive customer satisfaction and loyalty. In fact, financial services statistics underscore that AI-driven customer experiences can lead to 20% higher customer satisfaction.

Hit the link below and consider the following strategies for implementing AI into your financial institution’s customer experience program: