Open Banking and AI – a new era of personalised banking?

Ellie Duncan,
10 Nov 2023

The banking and lending industry is split on the pace at which to adopt and deploy AI for use in the customer journey.

Finding the balance between human intelligence and machine learning to provide customers and merchants with new, compelling customer experiences, was the focus of a roundtable co-hosted by Red Badger and Open Banking Expo on 19 October.

Participants representing UK and European banks and lenders, including Santander, American Express, Deutsche Bank, NatWest and HSBC, took part in the roundtable on Day Two of Open Banking Expo UK and Europe.

Also in attendance were representatives from ABN AMRO, UK Finance, TSB, Fidelity, BBVA and C Hoare & Co.

Attendees were asked, with the convergence of Open Banking and AI, are we on the cusp of a new era in personalised banking?

Participants discussed and debated how to use Generative AI to improve the customer experience and enhance the interactions between banks and their customers.

On the topic of Generative AI, roundtable participants discussed the potential opportunities for the technology in customer-facing channels and the value of doing so.

While some expressed a need for experimentation and to move at speed, others taking part in the roundtable said that there was no need to be a “fast follower” and that enterprises should take their time to get comfortable with AI first, before deploying it.

Among the other issues raised and debated were who owns the customer relationship, the challenges of channel proliferation, and the need to adapt to fast-changing consumer behaviours.

There was general consensus that institutions have had to work more closely and become allies, given the pace of industry change and transformation in recent years.

They also discussed the role of technology as an enabler and considered how technology giants, such as Apple, have been able to create experiences and services their customers were not even aware they needed.

Further reading: AI bank manager – hope or hype? By John Godfrey, commercial director at Red Badger.