A recent report from IHS Markit estimated that millions of jobs could be affected by the implementation of AI, and Don Tait, an analyst at IHS Markit stated that, “Banking employees potentially impacted by the introduction of AI includes tellers, customer service reps, loan interviewers and clerks, financial managers, compliance officers and loan officers. All in all, AI technology will reconfigure the financial industry’s structure, making the banking sector more humane and intelligent.”
I am all signed up to Don’s statement, AI could affect millions of jobs, and possibly eradicate a lot of them. AI is and can be a powerful tool for banks to better serve their customers and reduce costs. AI can make informed decisions, enable consumers to find out their balances and complete low-level interactions with the bank, this is potentially the best and quickest way to deploy AI successfully in branches. AI is already helping to prevent fraudulent transactions. By analysing spending patterns banks can both protect their customers against criminal transactions and minimising false declines.
I was all signed up until I read the words ‘humane’ and ‘intelligent.’ The idea that by eliminating humans from the process of loans and mortgages entirely will add more humanity into the process, is at best, poorly worded. AI can and will deliver many new, innovative products and services that will improve the experience of consumers when they interact with banks.
But there is empathy and nuance that is required when evaluating loans and applications for mortgages. AI can work as a virtual tool, but to remove the human touch, to remove human intervention when a decision has been made does not sit well with me. Many people like to discuss how they can reapply for a loan, what will help them in the future and they will have complex questions that they may not be able to articulate in a perfect way. As a Scotsman, with an accent, I can tell you that answering ‘yes’ over the telephone to an AI service can be frustrating.
An EY Singapore study that was commissioned by the institute of Banking and Finance and the Monetary Authority of Singapore, found that up to 40 job roles are at risk of convergence or elimination, these roles include, Branch Operations, Branch Teller, Mortgage Specialist, Product Sales – SME. This list continues, but the focus, at least, appears to be in the branch, on the customer facing staff.
The EY report correctly points out that convergence of roles is an inevitable consequence of AI being deployed in branches. Convergence of roles, the transformation of the roles in the branch because of AI, will only serve as a further justification for branch transformation projects to press ahead and ensure that today’s branch is ready for tomorrow’s staff roles and technology.
Having tellers in the branch gives you an opportunity to engage with your customers, to create and build a relationship. Many people want human interaction when it comes to buying complex problems. They look for reassurance that they are doing the right thing. For some people, human interaction in the bank branch might be the only interaction that they have that day. The customer experience of meeting the same person, building that relationship with them is important in retaining customers and their loyalty.
Technology, when implemented properly, does not eliminate the need for people to do their jobs. It enhances the ability of people to do their jobs better and to enhance their roles with higher value responsibilities. The most successful deployments of technology, whether it is hardware or software, are when it allows people to become more productive in their everyday roles.
At Glory we have supported many of our financial services customers through the journey to transform their branches. The roles of their staff with the deployment of our technology has evolved. Branch staff are no longer spending their time undertaking tasks that can be easily automated, tasks that should be automated. Instead our customers branches have developed into sales hubs and centres of excellence, providing information and guidance for complex financial products. As AI is deployed it is important that all consumer facing businesses, whether they are financial institutions or retailers remember that people buy from people, human interaction should not be completely removed from the customer journey.
