In today’s fast-paced financial services landscape, digital transformation is no longer a luxury – it’s a necessity. Financial institutions (FIs) are under immense pressure to deliver personalized, seamless interactions while also keeping up with the latest developments that are driving the industry forward.
The use of AI has been gaining momentum, seemingly being injected into banking systems at a breakneck pace. This move is often driven by tech “FOMO,” as well as a primal urge by leadership teams to make noise and signal to stakeholders that their business is up to date with the latest tools and trends.
However, the real value lies in using AI to remove legacy technology and create new opportunities. AI has the power to streamline workflows, eliminate unnecessary steps and get users to what they need – fast. In banking, this means not just simplifying procedures but also cutting through the overwhelming number of products and services to help users find the best option.
The Need for AI-Driven Search Tools
FIs face significant challenges in managing large volumes of content and inquiries, such as customers exploring banking products or employees navigating complex internal processes. Yet, traditional methods are often inefficient while failing to meet the growing demand for personalized, seamless interactions.
Enter an AI-driven generative search engine, which are revolutionizing the way FIs operate and interact with their customers. GenAI-powered search tools offer a range of capabilities that enhance both employee efficiency and customer experience, including:
- Navigating extensive content libraries and integrating external sources;
- Customizable indexing options and semantic search for managing complex inquiries;
- Summarizing extensive content to simplify data comprehension and retrieval; and,
- Delivering an intelligent search, a centralized knowledge base, automation and continuous support.
Addressing Core Customer Use Cases
AI-driven search engines improve search functionality, deliver personalized content and anticipate customer needs by excelling in key areas of classification, interpretation and prediction. For example, these tools can classify customer inquiries, interpret their intent and predict the best course of action, ensuring a more efficient and effective response.
While many FIs are still utilizing chatbots to assist customers, which often leads to user fatigue, GenAI-powered search tools have proven to be more effective by generating new content and providing more comprehensive and contextually accurate information based on user queries. From the customer’s perspective, AI-driven search tools offer a smoother and more intuitive experience, delivering intelligent, conversational-like responses without presenting themselves as chats, which customers often dislike. Instead, customers receive the necessary information instantly, avoiding the frustration typically associated with chat interactions. This approach reduces friction, enhances satisfaction and deepens their engagement with the FI’s digital platforms.
With AI-driven search engines, customers no longer have to spend time sifting through endless menus or dealing with unhelpful bots. Customers benefit from a prompt and precise responses while feeling like their FI is finally engaging them proactively, both simplifying and improving their overall digital banking experience.
Balancing AI with Human Expertise in the FI
Internally, GenAI-powered search tools enable FIs to streamline their operations by centralizing knowledge, allowing employees to quickly access relevant information, as well as automating routine tasks intelligently like customer support inquiries or complex research queries. This means banks can do more with less – lower overhead costs, fewer support tickets and greater overall efficiency – while minimizing the bottlenecks that can slow down an FI’s operations.
One of the key benefits of an AI-driven search engine is its ability to empower customer service representatives with real-time insights and context, ensuring that reps can preserve the human connection that customers prefer. By providing relevant information quickly, AI-driven search tools help reps deliver a more personalized and efficient service.
FIs also can cut down on the need for manual interventions in customer support, such as searching for information or routing requests, enabling teams to focus on more complex tasks – ultimately boosting employee productivity. The system not only improves response times, but also enhances accuracy, ensuring consistent service delivery.
Post M&A Event Benefits
Following an M&A event, generative AI is incredibly useful in quickly merging the systems and documentation of both entities. By consolidating decades of data from both FIs, GenAI search tools help internal teams navigate the combined product and service offerings, while also facilitating smoother customer transitions. Externally, customers of either FI get a consistent experience from day one, as these functions allow them to find relevant information on new services easily.
GenAI enhances this process by learning from the merged FIs’ systems and identifying trends, patterns and gaps in both internal and customer-facing documentation. This AI-driven insight supports a smoother transition, quickly surfacing potential issues or areas where alignment is needed, whether that’s harmonizing product offerings or streamlining customer service across the newly combined customer base.
AI-driven generative search engines are transforming the financial services industry by addressing key challenges and enhancing both employee efficiency and customer experience. As these tools continue to evolve, they will play an increasingly important role in helping FIs deliver personalized, seamless interactions, as well as gaining significant operational benefits, strategic growth and a competitive edge. The future of AI in financial services is bright, and those who embrace it will be well-positioned to thrive in this dynamic landscape.
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Jon Tvrdik, CEO of WaveCX
Jon Tvrdik is CEO of WaveCX, provider of personalized, digital product engagement solutions for financial institutions, designed to streamline operations while boosting customer and employee engagement. With a focus on enabling banks and credit unions to leverage their existing data and drive better outcomes, WaveCX is helping define how FIs think about engagement through the digital channel.
