On the Radar for FIs in 2019: Where There’s Data, There’s Opportunity
It’s safe to say change is inevitable. But when it comes to the payments world, the rate of change continues to accelerate. To survive and thrive, financial institutions have evolved their focus from what has always worked to what is next.
Bill.com’s mission is to be at the forefront of the technologies that are shaping the industry and to communicate those advances to our bank partners. Over the next few months, we’ll be sharing the stage with payments and banking leaders to discuss emerging trends and technologies that will change the financial industry over the next decade.
For example, one technology trend that’s a part of every conversation right now is artificial intelligence and its intersection with machine learning. Data shows that financial services companies lead in this area: More than one in five have already deployed the technologies, and an additional 31 percent are currently developing machine learning capabilities or planning to within the next 12 months.
But why? What do financial institutions have to gain? The benefits of AI and machine learning to financial institutions are clear:
- Intelligent data helps FIs strengthen their advisory relationships with their customers. By leveraging AI and machine learning to sort through volumes of data, an FI can hone in on critical factors for deepening its customer relationships. Assembling key attributes, like deposit history, purchase decisions, and loan details, allows the bank to offer products and services that truly align with customer needs.
- AI and machine learning enhance the customer experience. While data allows banks to be more targeted with offerings, customers benefit as well. Let’s face it, in an environment where Amazon tells us what we will like based on what we’ve purchased, we expect personal experiences. If a bank can leverage its data to pick up on that expectation, it can offer custom rewards programs or services that meet the customer where he or she is at—creating connection and opportunity.
- AI and machine learning streamline bank operations. As an added bonus, AI and machine learning help a bank operate more effectively and efficiently. For example, banks may leverage AI in fraud and risk monitoring to set off internal alarms when customers’ transactions are outside the norm. Compliance requirements, like SARs, become simplified when the data auto-populates, thanks to machine learning techniques. And that’s just scratching the surface.
AI and machine learning represent just a fraction of the exciting new technological advancements in the industry. When we look to payments innovation for banks, the landscape includes emerging technology, as well as fintech game-changers and big-tech challengers. These new technologies and market entrants impact the way banks do business and are pushing the boundaries of bank innovation.
As FIs explore the applications and limits of new technologies, their choice of fintech partner remains crucial. Banks realize a provider must truly be a partner, walking beside them to solve for key issues. And, for their part, bank partners need to understand the issues facing banks and their clients and be able to offer solutions that anticipate the full customer journey.
That’s why we see FI-specific enablement programs and institutional system integration as critical. To be effective as a bank partner, we must understand our institutions from the inside out. Certifications, such as NACHA’s third-party sender program, reiterate that we’ve done just that; we’ve met key requirements that show we understand banks’ inner workings and are uniquely poised to work with them.
At Bill.com, we pride ourselves on continuous learning to stay on the pulse of technology developments for our clients. To that point, stay tuned for more on the trending topics and important tech to keep on the radar—like where crypto, wallets, and blockchain fit into the landscape.
We’ll be continuing the conversation at key industry conferences this Spring including:
- NACHA PAYMENTS – May 5-8, Orlando, FL
- San Francisco Treasury Symposium - May 10th, San Francisco, CA
- Barlow Research Business Banking – May 20-21, Chicago, IL
We hope to see you there! And, in the meantime, if you would like to meet up with us at any of these events, drop us a message here to schedule time. Let’s keep the dialogue going.
Looking Backward to Move Forward: Payments in 2019,” Jordan McKee, Forbes, Jan. 21, 2019, https://www.forbes.com/sites/jordanmckee/2019/01/21/looking-backward-to-...