Gen AI to boost customer loyalty, Forrester says

Financial services providers are exploring generative AI uses for coding, customer service and document automation and FIs are looking to the evolving tech to increase customer loyalty. 

Banks can use gen AI to provide personalized services and data-driven offerings to deepen customer relationships, Alyson Clarke, principal analyst at think tank Forrester, told Bank Automation News.

Those experiences create “long-term loyalty and increasing share of wallet from customers,” Clarke said.

Gen AI can provide customized digital experiences at scale, moving banking away from a product-driven mindset and toward a relationship mindset to increase consumer trust, according to Forrester’s Sept. 25 report, “The Future of Banking is Built on Trust.” 

Banks have traditionally been focused on product revenue and transactional capabilities rather than the financial well-being of their clients, Clarke said. 

To change that, financial institutions can tap generative AI to build a 360-degree view of their customers and create personalized services, Clarke said.

Banks using Gen AI

Commonwealth Bank of Australia, for example, is using synthetic data pools and gen AI to test new products and predict adoption of those products without the need for time-consuming pilots, Clarke said.  

With gen AI, “what you now have is an almost real-time learning model,” she said. 

While gen AI for personalization is still experimental at many banks, the following institutions are already tapping data-driven insights: 

• The $20 billion Central Bank is providing customers with 60 data-driven insights about credit score boosters and money management. 

• The $220 billion Citizens Bank is deploying an AI-driven cash forecasting tool for its small- and medium-sized business customers. 

• JPMorgan is providing SMB customers with insight tools for cash flow management. 

• The $665 billion U.S. Bank is providing SMB customers with an AI-driven cash forecasting tool.  

The Forrester report stated that deployment of gen AI for insight-driven solutions must be done responsibly, with transparency and explainability at the forefront to increase consumer trust among financial institutions.