How AI is Reshaping Banking in Australia
- Written by Richard Valente, Executive Vice President CX Strategy at TP in Australia
AI in the Banking and Financial Services Industry
From fraud detection and credit scoring to personalised financial advice, AI is transforming the banking and services industry. Richard Valente, Vice President - Customer Experience Strategy at TP in Australia, shares his insights on how AI is revolutionising the BFSI industry.
With its robust and regulated environment, the financial services industry in Australia is one of the world leaders in incorporating Artificial Intelligence (AI) into all aspects of operations.
Some 99% of bank interactions are now happening online, according to Australian Banking Association data. Meanwhile all the big four banks are rapidly utilising AI with most banking executives using the technology within their organisations.
Boosting Productivity
Companies across the world, and particularly in the banking, financial services and insurance industry (BFSI), are reporting huge increases in productivity with the implementation of AI. Surveys are suggesting this uplift is as much as 20% in productivity gain in areas like software development and customer service.
AI and process excellence is aiding increase in productivity, enhancing customer service and trust. This is where the true potential of digital transformation is realised, not just in streamlining operations, but in fundamentally reshaping how businesses engage with their customers.
Transforming Customer Experiences
Australian consumers are likely to switch banks if there is poor digital experiences, they want customised interfaces that reflect their personal situation.
Customer experience management has undergone a transformation with customers now preferring, and expecting, personalised solutions and seamless, meaningful interactions.
AI offers this unprecedented degree of personalised access to information and advice which can help consumers assess their financial decisions and better understand how they spend their money.
The key is to leverage advanced technology with human empathy that delivers superior customer experience. What we call the ‘High-Tech, High-Touch’ approach at TP.
When it comes to delivering meaningful customer interactions, it is the perfect blend of efficiency and empathy — what we call ‘powered by EI (emotional intelligence) and enabled by AI’.
Australia is at a crossroads in its customer experience (CX) journey, with strong digital infrastructure and a tech-savvy population, customer expectations are rising, yet many organisations are lagging behind global counterparts in adopting innovative CX strategies.
AI-Powered Chatbots
In the banking and financial services industry customer service can be enhanced through AI-powered chatbots and automated systems providing 24/7 support and quicker response times. Beyond chatbots, AI algorithms analyse vast amounts of customer data.
This automation relieves the customer service expert from mundane tasks of fetching information to offer a resolution to the customer. With technology implementation, they can now focus on offering a quicker solution to the customer.
Equipping customer experts with the right tools, training, and actionable insights to deliver the right experience at the right time.
Using AI Driven Analytics
Bypassing traditional and outdated models of reading data, AI significantly enhances analytics for risk assessment in the finance and insurance sectors.
This hugely cuts back on time with many Australian insurance companies using AI for precise risk assessment and slashing claims processing time.
Australia’s major banks are also increasingly using AI in its home loan approvals processes, quickly assessing verification documents and summarising customer files. This enables customer service experts to take on more complex queries and deliver a seamless, elevated customer experience (CX).
In the insurance sector, companies are already leveraging machine learning and geo-specific imaging to better determine insurance risk of properties based on location. Speeding up operations and increasing the accuracy of risk assessments allows for more competitive and profitable pricing.
Reducing Fraud and Financial Crime
As rates of cybercrime soar – two thirds of Australians have experienced a cyber-attack or data breach in the past 12 months according to National Australia Bank data - regulators and the financial services sector are devoting more resources than ever to the problem.
Australians also trust their bank to maintain the privacy of their data. With this AI can automatically run over code base and identify errors, bugs or duplications instantaneously meaning faster spotting of criminal activity.
What’s Next?
Despite racing progress, the big test for many banks and financial institutes is in implementing the systems, governance and alignment that is going to be essential to turn these promises into practical, sustainable progress.
This means not just leveraging technology but investing in human touch where it matters most. The Australian market values authentic, empathetic, person-to-person interactions, especially when dealing with sensitive information. Smart CX strategies blend digital efficiency with human empathy, using technology to empower frontline teams, not replace them.
Cultivating customer loyalty beyond efficiency is the real challenge. The future of CX lies in a balanced approach that blends the power of technology with the human touch. Crafting experiences for the end customers that are powered by EI and enabled by AI.
