“ChatGPT lowers the bar for people using AI,” Charles Morris, Chief Data Scientist for Financial Services at Microsoft, recently said during a Banking Transformed <a href="https://thefinancialbrand.com/banking-podcasts/what-is-the-potential-of-chatgpt-in-banking-podcast-banking/">podcast</a>. It's true; this AI chatbot is democratizing artificial intelligence…even if it <a href="https://www.americanbanker.com/news/is-there-a-place-for-chatgpt-like-tech-in-banks">lacks</a> the “right direction and guardrails” for use as an automated teller in retail banking.
ChatGPT launched on November 30, 2022 and crossed one million users five days after launch. It then set the record for fastest-growing platform by gaining <a href="https://www.reuters.com/technology/chatgpt-sets-record-fastest-growing-user-base-analyst-note-2023-02-01/">100 million</a> monthly, active users by January. By March 2023, it hit 1.6 billion visits.
This wildly popular platform is transforming the way we learn, work and create, but is there a place for ChatGPT in banks? American Banker Editor Penny Crosman investigated and <a href="https://www.americanbanker.com/news/is-there-a-place-for-chatgpt-like-tech-in-banks">concluded</a>, “When you peel away the hype, ChatGPT is not ready to be used in finance today.” The good news? Its explosive popularity is still great for the financial services industry, because the technology platform is acclimating bank customers and credit union members to interacting with AI virtual assistants.
AI-powered interactive virtual assistants (IVAs) built specifically for retail banking are beginning to transform customer experience. Bank of America’s virtual banking assistant Erica passed the major milestone of more than <a href="https://content-na1.emarketer.com/bank-of-america-erica-hits-1b-customer-interactions">1 billion interactions</a> in October 2022. And it’s not just big with Millennials. Three years after launching, Bank of America reported that <a href="https://bankautomationnews.com/allposts/retail/bofas-ai-powered-assistant-erica-pulls-in-10-million-users/">half</a> (51%) of Erica users were Generation Z, Generation X and Baby Boomers.
Thankfully, smaller banks and credit unions don’t have to sit on the sidelines. Software-as-a-service (SaaS) solutions with data stored securely in the cloud is bringing AI technology within reach for all.
Financial institutions of every asset size can transform their customer service through an AI-powered chatbot, available 24/7, to help customers and members with managing their accounts, paying bills and carrying out transactions. Due to advances in the natural language processing (NLP) capabilities of AI technology, these virtual tellers can respond to customer requests quickly and efficiently. In this case, the purpose of IVAs is not to replace humans; it’s to free up humans to focus on more complex tasks.
Artificial intelligence is rapidly remaking our digitally-driven world. Banking can be part of that reinvention, but with personally identifiable financial information involved, strong security measures are critical. In the latest The Economist Intelligence Unit <a href="https://impact.economist.com/perspectives/sites/default/files/aiinfinancialservices.pdf">Survey</a>, bankers identified privacy and security concerns as the most prominent barrier to adopting and incorporating AI technologies in their organization. Thankfully, AI that’s up to par for use in the financial services industry is here.
Unlike ChatGPT, AI solutions designed for customer service in financial services comply with banking regulations and security requirements. IVAs that meet the banking industry’s high standards go far beyond conversational AI with data translation, API integration and contact center integration. They’re also applicable for interactions involving account balance, funds transfer, and transaction search and analysis. Additionally, they understand retail banking context and are readily customizable for each bank or credit union. With the right AI solution, a financial institution does not need an IT squad to build-from-scratch, fine-tune or adapt a generalized platform. The AI FinTech provider delivers reporting, analytics and support, to boot.
While ChatGPT’s usability in banking is limited, it’s opening many millions of eyes to the possibilities of artificial intelligence, which go far beyond <a href="https://www.businessinsider.com/microsoft-chatgpt-wrote-poem-about-bing-beating-google-2023-2">funny poems</a>, <a href="file:///C:/Users/laure/Downloads/1.5%20social.png">rap songs</a> and fact-heavy chit-chat. It’s filtering web clutter to find answers, knocking out time-intensive tasks in seconds and creating works of art. And it’s made the appetite for AI apparent.
Now a tested technology, artificial intelligence should garner the trust of bank and credit union leaders. With customer experience specifically, a smooth transition from people-intensive service to bot-backed personalization and efficiency is achievable for financial institutions, big and small. The key? Identifying the right AI solution.
R﻿ead the article at Finextra: https://www.finextra.com/blogposting/24104/chatgpt-is-greasing-the-wheels-for-use-of-ai-virtual-assistants-in-banking
<img src="https://www.finextra.com/finextra-images/visible_pictures/22c6f79f-eec9-469a-afbd-884133226e5a.jpg" alt="ChatGPT is democratizing artificial intelligence" title="ChatGPT is democratizing artificial intelligence">

In this expert article for Finextra, Michael Boukadakis dives into questions about the wildly popular AI chatbot ChatGPT, as it relates to retail banking 

ENACOMM CEO for Finextra - ChatGPT Is Greasing the Wheels for Use of AI Virtual Assistants in Banking

"The meteoric rise of data and performance-intensive workloads like generative AI is forcing a complete rethink of how data is stored, managed and processed,” said Nick Patience, senior research analyst at 451 Research, part of S&#x26;P Global Market Intelligence. According to S&#x26;P Global's new 2023 Global Trends in Artificial Intelligence (AI) <a href="https://www.prnewswire.com/il/news-releases/new-study-reveals-data-management-is-a-top-challenge-in-the-ai-revolution-301901584.html">report</a>, the adoption of AI by enterprises and organizations seeking to create new value propositions is accelerating, but data infrastructure and AI sustainability challenges present barriers to implementing it successfully at scale.
Indeed, the financial services industry wants to hop aboard the artificial intelligence train, too – but does the risk outweigh the rewards? In banking, AI can overhaul internal operations and elevate the customer experience (CX)…but the sensitive data that powers these evolutions must be properly handled. While the importance of this challenge cannot be understated, small banks and credit unions need not miss out on the technology’s transformative power.
For too long, smaller banks and credit unions have been challenged by unequal access to AI technology. From conference agendas to marketing materials, community financial institutions with less than $500 million of assets have been segregated and treated differently.
But financial institutions of all sizes need AI. It increases productivity, reveals the drivers of key performance measures, improves risk and fraud analysis, and powers the next generation of digitally driven products and services. And with financial institutions vying to retain and grow market share in a fiercely competitive landscape, AI enables banks and credit unions to set themselves apart with seamless, modern customer and member service. Of interest, AI has shifted from simply being a cost-saving lever to acting as a revenue driver, with 69 percent of respondents in the S&#x26;P Global survey saying they’re now using AI/ML to create new revenue streams.
Many community financial institutions are trailing behind their larger competitors in AI adoption, because they have either been overlooked by fintech vendors, who don’t serve them at all (due to their asset size), or because they assume they can’t afford the technology. But cost doesn’t have to be a barrier. Some fintech providers are reaching smaller institutions through channel partners who help banks and credit unions of all sizes compete by harnessing the latest technologies. Community banks and credit unions should reach out to their trusted technology advisors to inquire about AI vendors who price their solutions on a sliding scale. Some understand the important role that smaller institutions play within their communities and within the industry overall and, thus, bring next-generation technologies within reach for all institutions. Even though the delivery of the solution may be different, the technology itself doesn’t have to be.
Another hurdle that many community financial institutions face is lack of a big budget for R&#x26;D or a large IT staff. Thankfully, banks and credit unions can rely on the expertise of FinTechs, who specialize in designing technology to solve problems. Through synergistic partnerships, financial institutions can gain access to the latest technologies without the burden and headache of operations and infrastructure sustainment.
In the same vein, FinTechs can help financial institutions overcome the previously identified data infrastructure challenge. Banks and credit unions have long struggled to enhance the quality of data and create seamless, secure access to it. Siloed data, multiple data connection hops and antiquated back-ends that haven’t been modernized to today’s standards can prevent banking outfits from harvesting the value of AI; access to quality data is what unlocks AI’s potential. Handling sensitive data is also a risk, but it’s one that fintech experts are able to help FIs manage. Through partnership, banks and credit unions can tap into the technical expertise needed to elevate their operations and offerings.
So, banks and credit unions, regardless of your asset size, climb on the AI train – you don’t have to be left behind. As McKinsey &#x26; Company <a href="https://www.mckinsey.com/industries/financial-services/our-insights/reimagining-customer-engagement-for-the-ai-bank-of-the-future">concluded</a> back in 2020, before ChatGPT skyrocketed AI to popularity, “Banks that leverage AI and analytics to deliver smart servicing and superior experiences stand to increase customer satisfaction and loyalty,” which we all know is integral to survival in today’s competitive financial landscape.
R﻿ead the article at Finextra: <a href="https://www.finextra.com/blogposting/24938/fis-of-all-sizes-can-harness-the-transformative-power-of-ai-with-the-help-of-fintech-partners">https://www.finextra.com/blogposting/24938/fis-of-all-sizes-can-harness-the-transformative-power-of-ai-with-the-help-of-fintech-partners</a>

Financial institutions of all sizes need AI-powered technologies

ENACOMM for Finextra - FIs of All Sizes Can Harness the Transformative Power of AI with the Help of FinTech Partners

Fintech solution provider ENACOMM has named its new chief revenue officer

Biometric Update - AuthID, ENACOMM, 1Password, Microsoft and Videosign announce executive appointments

Zuniga to accelerate evolution of ENACOMM’s AI-backed self-service technologies to drive customer and partner success, and maximize company revenue

ENACOMM Appoints Dynamic Tech Visionary Stacey Zuniga as Chief Revenue Officer

Tech industry thought leader Stacey Zuniga has been named Chief Revenue Officer of ENACOMM, the company today announced.

Finextra - ENACOMM hires Stacey Zuniga as chief revenue officer

Zuniga will play a key role in driving strategic vision with senior management

The Green Sheet - ENACOMM appoints Stacey Zuniga as CRO

Zuniga will focus on developing channel relationships and technology partnerships

SalesTechSeries - ENACOMM Appoints Dynamic Tech Visionary Stacey Zuniga as Chief Revenue Officer

B﻿y Michael Boukadakis

“Digital and AI is not a strategy—digital and AI enable a strategy, augment a strategy, make a strategy better, but that initial strategic direction is actually quite important,” McKinsey’s Eric Lamarre commented during a Banking Transformed <a href="https://evergreenpodcasts.com/banking-transformed/rewiring-for-digital-banking-transformation-success">podcast</a>.
“Strategy” is the key word in Lamarre’s statement. In the financial services industry, bank and credit union leaders will neither realize the revenue boost they expect from digital transformation nor their expected cost savings, without one. Thankfully, a strategy that focuses efforts on a “specific journey” will help lead to successful transformation, according to Lamarre, who jointly authored the new <a href="https://www.amazon.com/Rewired-McKinsey-Guide-Outcompeting-Digital/dp/1394207115">book</a> “Rewired: The McKinsey Guide to Outcompeting in the Age of Digital and AI.”
So, what’s the <a href="https://thefinancialbrand.com/news/data-analytics-banking/artificial-intelligence-banking/a-guide-to-digital-ai-transformation-in-banking-164175/?smedia-twt-ambsu">definition</a> of digital and AI transformation? It’s “the process of developing organizational and technology-based capabilities that allow a company to continuously improve the customer experience, lower its unit costs and sustain a competitive advantage.”
Take note: Customer experience comes first. In fact, in its global survey, McKinsey asked senior leaders how they would differentiate their business strategies from competitors over the next two years, and the top performers often cited a focus on customer engagement and innovation strategies. Many of their peers, on the other hand, placed more emphasis on operational efficiency.
For financial institutions, improving customer engagement pays off. In fact, “Rewired” relays a case study of DBS Bank’s successful digital transformation, which revealed that customers who use the bank’s digital tools and services produce twice the revenue of traditional customers. Thanks to modern technologies, such as AI-powered virtual assistants that can be utilized across multiple interaction channels, banks and credit unions can deliver a personalized customer experience and target customers and members with relevant marketing offers and other value-adds that deepen loyalty. More engaged consumers interact more and spend more, and they stick around.
McKinsey also looked at data from 80 global financial institutions spanning the time period from 2018 to 2022 and discovered that digital leaders significantly outperformed laggards in key categories like return on tangible equity (ROTE), price-to-earnings ratios and return to shareholders. Making “improvement and <a href="https://www.finextra.com/blogposting/24427/5-ways-financial-institutions-can-ensure-adoption-of-a-new-virtual-assistant">uptake</a> of [bank’s/credit union’s] digital customer experience” the center of your strategy may be the smartest choice for lifting loyalty and revenue.
“Rewired” recommends and details six capabilities to make digital and AI transformation successful, but I would boil it down to this….ensure AI technology is supported by:
<ul>
<li>Quality data that is accessible by all institution channels</li>
<li>Modern customer experience solutions that are unified and user-friendly</li>
<li>Strong security for enrollment, authentication and fraud detection</li>
</ul>
Artificial intelligence can truly transform nearly every aspect of your financial institution, but to keep customer experience front and center with your strategy, it must be reinforced with data that enables tailored customer interactions, next-gen CX solutions that facilitate those interactions, and a level of security that protects customers’ or members’ sensitive, personally identifiable information during those interactions.
Introducing customers or members to an interactive virtual assistant (IVA) is a powerful move within a strategy to prioritize digital customer experience. These AI-based, digital assistants take CX to the next level by:
<ul>
<li>Making it quick and convenient to find answers to questions, such as, “What’s the bank’s routing number?” or “What are the bank’s branch locations and hours?”</li>
<li>Staying available always, 24/7 – unlike humans, IVAs <a href="http://www.greensheet.com/emagazine.php?article_id=7306&#x26;fbclid=IwAR1rokLwXkV0DLokDsrHZLs9qsE2hiy5HR1sbtjAkTQCAPzJfH0fUvNPyic">never sleep or take a break</a></li>
<li>Cultivating an AI learning loop, so the IVA gets smarter over time, as the collection of data grows</li>
<li>Freeing up customer service agents to focus on complex and meaningful customer/member interactions by automating simple requests</li>
</ul>
So, remember: Adoption of digital and artificial intelligence technologies is not a strategy on its own…but doing so can play an important role in a strategy that is designed to achieve the vision for your financial institution. Bank and credit unions leaders, take time to think through the steps your team needs to take to achieve its goals and objectives. Artificial intelligence can surely enhance your roadmap to get where you want to go.

Adoption of digital and artificial intelligence technologies can play an important role in a strategy that is designed to achieve the vision for your financial institution

Fintech Nexus - Enhance Your Financial Institution Roadmap with Artificial Intelligence

To merit the appointment as COO, Darveaux successfully conquered myriad challenges at ENACOMM over the last three years

ENACOMM Elevates Cagla Darveaux to the Post of Chief Operating Officer

<a href="http://www.enacomm.com/">ENACOMM</a> CEO Mike Boukadakis joined us in the Studio Lounge to talk about the organization's recently unveiled <a href="https://www.cubroadcast.com/news/fintech-veteran-enacomm-unveils-emerie-the-most-advanced-ai-based-intelligent-virtual-assistant-in-the-industry">"Emerie," the most advanced AI-based intelligent virtual assistant in the industry today</a>. Mike explained how Emerie’s AI technology learns about and comes to know users by continuously analyzing performance metrics and integrating new information, delivering an improved user experience with every customer interaction. 
 
“Customer experience is a key differentiator among financial institutions,” commented Boukadakis. “Consumer expectations continue to advance amidst today’s accelerated digital transformation, but Emerie catapults FIs ahead of the competition.” 
 
Be sure to <a href="https://www.cubroadcast.com/2023corelation_studiointerviews.html">visit our interview archive page</a> to watch all our video discussions from Corelation's Annual Hybrid Client Conference.
 
W﻿ATCH CUbroadcast Host Mike Lawson's interview with ENACOMM CEO Mike Boukadakis:
<a href="https://www.cubroadcast.com/episodes/corelation23-enacomms-boukadakis-unveils-ai-based-intelligent-virtual-assistant-emerie">https://www.cubroadcast.com/​episodes/corelation23-​enacomms-boukadakis-unveils-​ai-based-intelligent-virtual-​assistant-emerie</a>
 
###

ENACOMM CEO Mike Boukadakis joined CUbroadcast to talk about the organization's recently unveiled "Emerie" the most advanced AI-based intelligent virtual assistant in the industry today

CUbroadcast - ENACOMM's Boukadakis Unveils AI-Based Intelligent Virtual Assistant 'Emerie'

ENACOMM Celebrates a Decade as a Certified Partner of Corelation, Introduces Credit Unions to its AI-Powered Interactive Virtual Assistant Emerie at 2023 Corelation Client Conference

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