Artificial intelligence to transform digital marketing

The banking sector must utilise new technologies and partnerships to become “true digital ecosystems.”

An Economist Impact report, “Byte-sized banking: can banks create a true ecosystem with embedded finance?” said artificial intelligence will significantly impact the banking sector in the next few years, with a notable transformation expected in digital marketing.

Current uses for AI include banking chatbots, which enhance consumer experience and save banks $7.3 billion in operational costs.

63% of respondents agreed new technologies will guide business priorities over the next five years, the report added.

Advancing technologies will also generate greater opportunities for customer personalisation in the banking process.

75% of banks agree customer personalisation will be a key differentiator between competitor banks in the coming years, the report said.

Banks can leverage access to these advancing technologies through collaboration with fintech firms, with 44% of respondents agreeing banks will acquire stakes in fintech enterprises in the coming years.

Steve Dunn, head of innovation and fintech at Sumitomo Mitsui Banking Corporation, said: “We see value in partnering with fintechs to accelerate our own go-to-market capabilities. It’s a key element of our innovation strategy.”

The annual study, sponsored by Temenos, surveyed 300 executives in retail, commercial, and private banking, in roles such as marketing, finance, sales, and strategy.