Traditional banks are undergoing a significant transformation driven by digital pressures, adapting to the changing landscape and embracing innovative technologies to meet customer demands. This digital revolution is poised to usher in a new era of digital banking, where artificial intelligence (AI) takes center stage by providing personalized financial advice and guidance to consumers.
During an interview at Huawei’s Intelligent Finance Summit in Shanghai on June 7 and 8, Brett King, renowned futurist and author of the book “Banking 4.0,” highlighted the potential of AI in reshaping the banking industry. He emphasized that emerging wallet systems like China’s Alipay and WeChat Pay, India’s Paytia, and South Korea’s Kakao will evolve into AI-powered bank accounts that offer comprehensive support for day-to-day money management. King predicted that this trend will be adopted by banks worldwide, augmenting human advice with AI capabilities.
Simultaneously, traditional banks are rapidly transitioning into the digital realm, revamping their offices and data centers to leverage AI technologies and reengineering their operations to enable customers to conduct most, if not all, of their banking activities online. The COVID-19 pandemic served as a catalyst for this digital shift, forcing banks to quickly adapt and provide digital services while ensuring remote work capabilities for their staff.
Paul Siy, Senior VP and Chief Technology Officer at BDO Unibank, the Philippines’ largest bank, reflected on the challenges the bank faced during the early stages of the pandemic. Siy emphasized that a cultural shift was necessary to drive the bank’s transformation. Once that mindset shift was achieved, BDO Unibank focused on maximizing the benefits of AI. The bank utilized AI to proactively identify and resolve network issues, preventing their escalation, and even created chatbots that simulate human conversation.
The ongoing digital transformation is reshaping traditional banking, pushing institutions to embrace AI and leverage its capabilities to enhance customer experiences and optimize operations. As banks continue to navigate this evolving landscape, they are expected to harness digital technologies to offer innovative services, cater to changing customer expectations, and stay competitive in the digital era.