How your bank can get its share of $1 trillion

Industry analysts believe artificial intelligence (AI) will save the financial industry tremendously over the next decade, an estimated $1 trillion in fact, and those savings will undoubtedly have a large impact on forward-thinking midsize banks and credit unions. Most midsize financial institutions are woefully behind, and this gap will only increase over time. So, how can you get started with AI and gain your share of the savings?  

Start the conversation with bank leadership

Convincing leadership and other stakeholders is one step, and the information presented here should at minimum prick their ears. After all, who doesn’t want to increase revenue by 34 percent and save 22 percent on operational expenses? Demonstrating that AI is the pathway to such results should be easy enough, especially when you consider the challenge and opportunity: do nothing, and you risk falling behind competitors and losing market share. Act now, and you can gain a steep advantage over competitors and dominate market share.  

Find an experienced partner

The next step is to explore AI partnerships. You don’t need to hire in-house talent to implement AI in your financial institution. Rather, you need an outside resource that understands needs and challenges within the banking industry and how AI can address them.  

In fact, addressing business needs first is a staple of successful AI implementation. A common pitfall occurs when organizations attempt to harmonize every aspect of their data before moving forward. Business and end-user needs should be prioritized, which allows you to address data architecture and quality issues incrementally as you progress toward full AI functionality. Under this model, both the data and AI improve over time. 

Don’t be afraid to consult the experts. Outside resources can accelerate your time to market and speed learning while allowing you to retain your core focus on customers and financial services. They work in lockstep with your internal talent to implement solutions that save money and fuel revenue growth. AI partners can even help you make your case to bank leadership and stakeholders. Have conversations with potential AI partners about your challenges, and they’ll be able to identify AI-driven solutions and opportunities for growth—perhaps even some you haven’t thought of.  

Start with quick wins

Banks that successfully implement AI start small and seek quick wins. They launch pilot projects and measure the outcomes, which can be a powerful way to convince leadership and stakeholders to invest additional funds into AI. They make AI cross-functional across the organization by creating an AI Center of Excellence that collaborates between departments, similar to a shared services model. They build digital cultures predicated on defined roles, responsibilities and leadership. 

There’s a lot that goes into AI implantation for financial institutions, which underscores the importance of working with an experienced partner capable of integrating proven AI standards that have immediate impact and ultimately result in greater future gains—all within your current organizational hierarchy and culture. 

The future impact of AI for financial institutions is more than increased revenue and reduced costs. It’s going to be necessary to remain competitive in the evolving financial services landscape. As the next disruptor for financial institution products and services, AI isn’t just part of the future—it is the future—and it’s going to be critical to your bank’s survival. The future starts now.