Financial Services

While these offerings can improve sales and customer satisfaction, merchants must also take into account this added and very costly risk

On the podcast we discuss what to expect as banks deploy more AI in 2024. We chat about several use cases for AI, like customer service and chatbots, personalized banking services, fraud detection and prevention, credit scoring and risk assessment, as well as personalized marketing. In “Place Your Bets,” we distribute 10 points to four predictions in order to rank the relative likeliness that each one will come true. We rank the following to see which is most likely to happen in 2024: news stories about overzealous chatbots stops banks from rolling them out, regulators squash attempts to use AI for investment advice, the deployment of AI enables banks to initiate massive layoffs, and small banks and credit unions are able to win more customers because of their deployment of AI for customer service. Listen to the conversation with host Rob Rubin and our analysts Jacob Bourne and Gadjo Sevilla.

Traditional financial institutions need new strategies to hold their ground against big tech and fintech competitors.

They want more nontraditional rewards, greater personalization, and less friction in the rewards process

The addition of BNPL at checkout can help improve credit access in a market where 70% of adults don’t have a credit card

The company used its proprietary stablecoin as the main funding instrument, highlighting the asset’s transfer benefits

GenAI will generate more financial value for banks than any other technology introduced in the last decade. Per a September 2023 McKinsey & Company research, it could hit $200 billion to $340 billion annually through greater productivity.