BAI Banking Strategies 33.07 - AI helps banks of all sizes think bigger
May 29, 2024
Lee Wetherington, Senior Director of Corporate Strategy at Jack Henry, discusses how AI can level the playing field for banks of all sizes. He explores the importance of a data-first approach and modern infrastructure for smaller institutions. The conversation delves into misconceptions around data availability, challenges of fragmented customer relationships, and the role of small language models in enhancing efficiency. Wetherington also addresses how generative AI can revolutionize customer service while meeting regulatory standards.
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Financial Data Fragmentation Insight
- Even large banks only control about 20-30% of their customers' total financial data.
- Customer financial data is highly fragmented across 15-20 different providers and apps on average.
Becoming The Customer's First App
- Aim to become the customer's 'first app' that consolidates data from all financial providers securely.
- Replace screen scraping with secure open banking APIs to reduce fraud and vulnerabilities.
Financial Confidence Drives Action
- Customers are more likely to act on a product recommendation if they see a reliable, comprehensive view of their finances.
- Fragmentation lowers financial confidence and diminishes trust in bank recommendations.