Artificial intelligent is able to significantly increase the efficiency of various banking processes, according to a speaker of AI Conference Kyiv – Sergii Karaulov, Head of CRM and Customer Intelligence department at the First Ukrainian International Bank (FUIB).
We talked to the expert in order to discover how AI technologies help financial institutions to cooperate with customers, attract new consumers, and retain them.
Interviewer: AI Conference Kyiv (AICK)
Respondent: Sergii Karaulov (S.K.)
AICK: What client base management challenges can be faced today?
S.K.: The core challenge faced by В2С companies is the integration of all the data into a single storage. The main difficulty is that one should store and analyze such heterogeneous data as user behavior on messengers and social media, IP addresses, device identifications, and consumer preferences.
We constantly receive new information about our clients. It allows to expand and improve the database. This causes the second difficulty: the volume of information grows much faster than the system capacity. Consequently, there is the necessity to invest in the development and upgrade of these systems.
Last but not least, the capability to process data online.
AICK: How has artificial intelligence advanced banking operations as of today?
S.K.: AI helps to substantially enhance the efficiency of banking processes. Due to artificial intelligence, we predict clients’ questions and give answers in advance. In other words, we prepare a relevant offer before people encounter a problem.
As illustrated by the bank, it looks as follows: recording consumer’s call and knowing that they have recently conducted a payment, we realize with a probability of 99% that the person wants to find out whether the transaction is correct. Therefore, we automatically answer that the payment has been carried out successfully. If customers call after the unsuccessful transaction, we say them what to do and how to manage the limit via the mobile app. As the result, people receive the answer to their question much quicker than during the conversation with an operator, while the bank has relieved the call center.
One more example. AI allows to interact with clients online. If they run out of money on the card, we immediately offer to expand/install the overdraft or to draw up a credit card. The effect of such an offer is higher than of conventional sales, because we do not sale in this case, but provide customers with a just-in-time solution. Imagine the importance of overdraft for a person while standing at the cash register in the store without enough money to pay for goods.
AICK: How do AI technologies help companies to attract new customers and retain them?
S.K.: Using AI technologies, we predict the purchase probability of a certain product and, consequently, offer it only to those who are definitely interested in it. Thus, the purchase probability is higher, and the establishment of bank client interaction is more seamless.
Furthermore, AI improves the efficiency of banking processes. We serve clients faster and better, which greatly affects the level of people’s satisfaction of the cooperation with the financial organization.
Besides, we know how to predict the client attrition and behavior patterns in general. We highly likely realize when customers start bringing less money and when our cooperation can end. This information allows us to take necessary measures to retain them, for instance, by offering another product or more profitable maintenance fees.
AICK: At FUIB, you have increased cross sales by 2.5 times and the credit card portfolio threefold. How have you managed to achieve such a result?
S.K.: Initially, we started focusing on cross selling instead of winback. Earlier, the bank began to work with clients – offering new products and engaging – when they leave (after credit settlement or credit card closing). Conducting the analysis of CRM companies, we decided to change the approach to consumer operations. Eventually, we corrected the customer selection criteria for campaigns and started attracting them at earlier stages.
Our team also launched event-based campaigns: offerings of products when people feature the highest proclivity for them. For example, we offer a credit card when users run out of funds or recommend opening a deposit when receipts to an account exceed the common ones.
AICK: What will you tell the audience at AI Conference Kyiv?
S.K.: I will tell guests how we apply data to increase client value for the bank and vice versa.
Discover more about the application of artificial intelligence
technologies in business at AI Conference Kyiv.
You'll know more than your colleagues and business rivals.