Every year, artificial intelligence (AI) becomes increasingly prevalent within the banking industry. Community banks can utilize AI technology to enhance their relationships with their customers and create new ones. Relationships are the strongest value a community banker has, and the relationships built by local banks are vital to their longevity and success. AI can allow bankers to track current customers more efficiently and locate potential new ones within their community.
Along with the enhancement of relationships with customers, another large appeal to the usage of AI is the savings that can come from implementing this technology. By 2030, AI is projected to save banks in the U.S. over $1.2 trillion and cut costs by 22 percent.1 The implementation of AI in authentication and data processing alone will save banks over $200 billion.1 The reduction in costs for banks using AI will concurrently lead to an increase in value for these banks and the overall financial industry. Accenture estimates that AI will add $1.2 trillion in value to the financial industry by 2035.2 These numbers are nothing to overlook and the long-term plans of banks should have some sort of implementation of AI within their operations.
A community bank's strongest asset is the relationship with their customers and any technology that can enhance this asset should be seriously considered by banks looking for long-term success. This large return on investment for banks has led to venture capital firms funneling over $10 billion into AI-powered companies.2 Hopefully, community bankers can take advantage of some of the solutions AI offers within their daily operations.
As the financial industry heads into the 2020’s and beyond, it is becoming evident that AI will be a large part of the future.