Banks’ business models will undergo a profound reorganization as a result of digital transformation accelerated by artificial intelligence, the managing director of Boston Consulting Group in Singapore told Yicai on December 1.
The comprehensive and systematic reorganization of the banking industry will affect personnel, capabilities and organizational system, Tang Yang said in an interview.
The essence of digitalization is a deep understanding based on the vast amount of data that is increasingly available in the digital era, Tan said. The banking sector needs to harness the value of data through digital means. Banks should analyze this information to improve customer service and operations.
The cost of customer acquisition by traditional financial institutions increases every year, so customer-centric and scenario-based marketing is key to solving the global problem, Tan said. The overall business model of banks has changed from product-centric to user-centric, creating a differentiated service system with appropriate standards and equipment to serve different customers, he added.
The next direction of digital transformation should be intelligence, Tan said. AI has reached a point of explosive growth given the maturity, awareness and systems, he added.
This year, OpenAI’s great ChatGPT language model has encouraged people from all walks of life to learn AI. According to the director of the consulting firm, generative AI is one of the key drivers of financial innovation, which will improve customer service, adapt financial recommendations, improve market understanding, strengthen marketing and increase the ability to control risks .
Chinese banks are increasing investments in digitalization. According to iResearch, total information technology investment will reach 366.8 billion yuan ($51.4 billion) this year, up 77% from 2020.
Source: Rossa Primavera
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