Invest
Artificial intelligence sets ‘new battlefield’ for your loyalty
Consumers’ loyalty is set to be tested as developments in artificial intelligence make bank-switching a painless process, a new report has found.
Artificial intelligence sets ‘new battlefield’ for your loyalty
Consumers’ loyalty is set to be tested as developments in artificial intelligence make bank-switching a painless process, a new report has found.
According to the World Economic Forum and Deloitte report, released today, AI will dramatically upend the traditional dynamics of the financial services system, and this is good news for customers.
“Banks today may have customers who aren’t willing to change banks because of the high costs associated and the effort involved with shifting mortgages,” Deloitte Australia digital partner Joel Lipman said.
“But the future will see these costs removed as AI developments, such as personal banking assistants, are able to identify the best deal for customers and move them without the current high dependency on humans.”
He said this will be the “new battlefield for customer loyalty” as past barriers to switching, like cost, speed and access are eroded.
At the same time, consumers can expect tailored banking solutions, which will also shift the existing dynamics.
“As past methods of differentiation erode, AI presents an opportunity for institutions to escape a 'race to the bottom' in price competition by introducing new ways to distinguish themselves to customers,” the report said.
It pointed to the way Lloyd’s Banking Group in the UK has shifted its position to become a “trusted guardian of data” and said large institutions will increasingly need to know their customers beyond just their finances and look for opportunities to improve their daily lives.
Similarly, AI will deliver customers a “radically reimagined” experience, allowing customers’ finances to run themselves and even act as personal advisers.
The researchers described most financial advice as calculator-based and impersonal. However, institutions like Citi are beginning to connect with consumers through mobile apps giving users a “360-degree view of their financial lives across all banks and providers”, allowing them to consolidate their financial lives, and personal finance apps like Clarity Money and MoneyLion are now using AI to provide mass advice and task automation to help customers refinance loans and consolidate debt.
However, as projects like these and the broader AI development continues, so too will consumer protection measures, the researchers concluded.
“As AI automates decision-making processes, new methods of protecting consumers and ensuring the public interest is sheltered will be required,” the report said.
Stock market
2 big questions investors should ask as Australia reopens
Investors need to stop thinking about how to profit from the mineral sector’s struggles, and start looking at when the best time to ride the recovery will be. ...Read more
Stock market
Trading app popularity skyrockets as retail sector booms
In 2021, trading has never been easier for retail investors, meaning the number of users on trading applications has exploded to an all-time high. ...Read more
Stock market
ETF rush predicted to intensify
The Australian ETF sector advanced AU$6.3 billion in August to hit a new milestone, as its popularity among financial advisers soared. ...Read more
Stock market
The 6 unique Australian market affects that all active managers can exploit
The uniqueness of the Australian equities market is providing fund managers with an opportunity to essentially beat the market, new research has revealed. ...Read more
Stock market
‘Don’t believe the hype’: ASIC warns of risks for new market participants
ASIC has expressed concern that inexperienced or uninformed investors are putting their capital at unnecessary risk when tempted into the market by questionable marketing strategies from market promot...Read more
Stock market
How do you choose the best ETFs?
In recent years, exchange-traded funds have become an increasingly popular option among Aussie investors. ...Read more
Stock market
Lockdowns instigate a rise in new investors
Despite COVID-19 leaving individuals and businesses to face an uncertain future, retail investors’ appetites for shares have increased throughout the pandemic, a new report has found. ...Read more
Stock market
‘Code red for humanity’ a wake-up call for private and public investment
Retail investors that have been advocating for sustainable and ESG investing are hoping a new report released by the United Nations will serve as a wake-up call to the financial industry and governmen...Read more
APRA’s mortgage crackdown, the power of DeFi and last-minute tax tips
Listen now
What to expect as the end of lockdown looms? Will the Stage 2 tax cuts boost your tax return? Where should investors be looking as the economy reopens?
Listen now
Could property prices inflate by another 20%? What’s happening in recent dividend announcements? Did your fund fail the YFYS test?
Listen now
What does the NSW regional permit mean for property investors? Who really wins from the BHP-Woodside merger?
Listen now
Stock market
2 big questions investors should ask as Australia reopens
Investors need to stop thinking about how to profit from the mineral sector’s struggles, and start looking at when the best time to ride the recovery will be. ...Read more
Stock market
Trading app popularity skyrockets as retail sector booms
In 2021, trading has never been easier for retail investors, meaning the number of users on trading applications has exploded to an all-time high. ...Read more
Stock market
ETF rush predicted to intensify
The Australian ETF sector advanced AU$6.3 billion in August to hit a new milestone, as its popularity among financial advisers soared. ...Read more
Stock market
The 6 unique Australian market affects that all active managers can exploit
The uniqueness of the Australian equities market is providing fund managers with an opportunity to essentially beat the market, new research has revealed. ...Read more
Stock market
‘Don’t believe the hype’: ASIC warns of risks for new market participants
ASIC has expressed concern that inexperienced or uninformed investors are putting their capital at unnecessary risk when tempted into the market by questionable marketing strategies from market promot...Read more
Stock market
How do you choose the best ETFs?
In recent years, exchange-traded funds have become an increasingly popular option among Aussie investors. ...Read more
Stock market
Lockdowns instigate a rise in new investors
Despite COVID-19 leaving individuals and businesses to face an uncertain future, retail investors’ appetites for shares have increased throughout the pandemic, a new report has found. ...Read more
Stock market
‘Code red for humanity’ a wake-up call for private and public investment
Retail investors that have been advocating for sustainable and ESG investing are hoping a new report released by the United Nations will serve as a wake-up call to the financial industry and governmen...Read more
More articles
Website Notifications
Get notifications in real-time for staying up to date with content that matters to you.
