AI-driven personalisation: A new era in Ghanaian banking services

In the ever-evolving landscape of the financial industry, banks around the world are embracing cutting-edge technologies to enhance customer experience and meet the diverse needs of their clients.

Creditably, banks in Ghana are welcoming this transformation. At the forefront of this digital transformation is Artificial Intelligence (AI), a revolutionary tool that is driving a new era of personalized banking services in Ghana.

In this article, I explore how AI-driven personalization is reshaping the banking sector, providing tailored financial solutions, and fostering stronger customer relationships.

The Power of Artificial Intelligence in Banking

Artificial Intelligence, a branch of computer science that aims to create machines capable of intelligent behaviour, has made remarkable strides in recent years. In the context of banking, AI technologies, such as machine learning and natural language processing, are leveraged to analyse vast amounts of data, recognize patterns, and make data-driven decisions. Andrew Ng, the founder of Google Brain and former Vice President of Baidu made an apt analogy when he said “AI is like electricity.

Just as electricity transformed every major industry a century ago, AI is now poised to do the same.” This view is corroborated by Sundar Pichai, the CEO of Alphabet, howbeit in an even stronger voice with the prediction that “Artificial intelligence will have a more profound impact on humanity than fire, electricity and the internet.” These voices paint a portrait of what banks in Ghana are dealing with and whether AI becomes a tool or a threat in their survival.

The adoption of AI in the Ghanaian banking sector has been transformative, allowing financial institutions to gain insights into customer behaviour, preferences, and financial goals. With this knowledge, banks can now offer personalized services that meet the individual needs of each customer, effectively enhancing the overall banking experience.

As AI technology continues to develop, we can expect to see even more innovative applications of AI in the banking industry in the years to come.

Personalisation: The Key to Customer Satisfaction

In a world where consumers expect tailored experiences from their service providers, personalization has become the hallmark of exceptional customer experience. AI-driven personalization in banking goes beyond addressing customers by name; it involves understanding their unique financial circumstances, spending patterns, and future aspirations.

Through AI-powered data analytics, banks can analyse a customer's transaction history, savings behaviour, and investment preferences to offer relevant and timely financial advice. For instance, if a customer frequently travels internationally, the bank can suggest travel-friendly credit cards or provide real-time exchange rate updates to facilitate seamless overseas transactions.

AI personalization in other sectors

One area where AI has become a game-changer is the streaming and social media landscape, revolutionizing how content is personalized and delivered to users. AI-powered recommendation systems are at the heart of personalized content delivery on streaming platforms and social media. These systems analyse vast amounts of user data, including past behaviour, preferences, and interactions, to suggest relevant content tailored to each user's interests.

AI is used to curate content feeds on social media platforms, prioritizing posts and updates based on what the algorithms believe will be most relevant and engaging for each user. Using AI-powered sentiment analysis, tools are employed to gauge users’ emotions and reactions to content. AI algorithms analyse users’ behaviour, demographics, and interests to deliver highly targeted and personalized advertisements on social media and streaming platforms. AI-powered voice assistants like Alexa, Google Assistant, and chatbots on social media platforms interact with users in personalized ways.

AI has transformed the streaming and social media landscape, enabling personalized content delivery and enhancing user experiences. By leveraging AI responsibly, streaming, and social media platforms are delivering personalized, engaging, and valuable content to their users while respecting their privacy and preferences. This is an area that banks can learn from in harnessing the power of AI to provide personalized content that can acquire, engage, and delight customers.

Chatbots: The Virtual Banking Assistants

Another AI-powered innovation transforming the banking landscape is the use of chatbots. These virtual assistants interact with customers in real-time, responding to inquiries, providing account information, and even offering financial guidance.

Chatbots significantly reduce response times, ensuring that customers receive swift support and resolutions to their queries. Moreover, these virtual assistants can handle routine tasks, allowing human bank employees to focus on more complex and value-added services.

Absa is using AI to personalize customer experiences. The bank's chatbot, Ada, can answer customer questions about products and services, and it can also provide personalized recommendations. Ecobank Ghana is using AI to automate tasks. Rafiki can assist with common tasks and make recommendations.

Though significant strides have been made in this regard, greater potential remains to be exploited. The power of AI lies in its learning and analytic capabilities and harnessing it to curate and serve personalized customer needs.

Risk Assessment and Fraud Detection

AI-driven personalization also strengthens risk assessment and fraud detection in the banking sector. By analysing customer behaviour and transaction patterns, AI algorithms can detect suspicious activities and potential fraud attempts with greater accuracy. This is bound to change the narrative on the incidence of non-performing loans and its attendant ills bedevilling the Ghanaian banking industry.

Ecobank's robo-advisor, E-Advisor, can help customers with their investments, and its fraud detection system can identify fraudulent transactions. Standard Chartered Bank Ghana is using AI to improve fraud detection. The bank's AI-powered system can identify fraudulent transactions with a high degree of accuracy.

This proactive approach to risk management not only protects customers from financial losses but also safeguards the reputation of the bank. As cybersecurity threats continue to evolve, AI's ability to adapt and learn in real-time becomes crucial in staying one step ahead of potential threats.

Benefits of AI-driven personalisation

There are a lot of benefits that banks can draw from the responsible and informed use of AI in powering personalized customer experience. Some of these include.

• Increased customer satisfaction: AI can help banks to better understand their customers' needs and preferences, which can lead to more personalized and relevant products and services. This can lead to increased customer satisfaction and loyalty.

• Improved efficiency: AI can automate many of the tasks that are currently performed by humans, which can free up those employees to focus on more complex and strategic work. This can lead to improved efficiency and productivity.

• Reduced costs: AI can help banks to reduce costs by automating tasks, improving efficiency, and detecting fraud. This can lead to lower operating costs and higher profits.

The Future of AI-driven Personalisation

As AI technologies continue to advance, the potential for personalization in banking services will only expand. Financial institutions in Ghana will be able to harness AI to offer more sophisticated investment advice, automate loan approvals, and even predict customers' future financial needs.

The future of AI in Ghanaian banking services is bright. As AI technology continues to develop, we can expect to see even more innovative applications of AI in banking in the years to come. Some of these applications could include:

• AI-powered credit scoring models that are more accurate and fairer than traditional models.

• AI-powered investment advisors that can help customers to make better investment decisions.

• AI-powered fraud detection systems that can prevent fraud before it happens.

Being ready

Along with these opportunities, there will be important considerations around data privacy and security. Banks must prioritize safeguarding customer data and ensure that AI applications comply with relevant regulations. Government and leadership must be proactive with regulation and adoption. “AI is a rare case where I think we need to be proactive in regulation than be reactive.”

Elon Musk. Amit Ray, famous AI scientist and author of Compassionate Artificial Intelligence once said, “As more and more artificial intelligence is entering into the world, more and more emotional intelligence must enter into leadership.” It is incumbent on all leaders of institutions to make sure they are building institutions in which every individual has an opportunity to thrive, rather than to being apprehensive of robots taking over their jobs.

Conclusion

AI-driven personalization is ushering in a new era of banking services in Ghana, empowering financial institutions to build stronger customer relationships, deliver tailored solutions, and enhance overall satisfaction. Through AI's ability to analyse vast amounts of data and learn from patterns, Ghanaian banks can elevate their service offerings, stay competitive in the market, and set new standards for customer-centric finance.

As technology continues to reshape the banking landscape, the integration of AI-driven personalization will play a pivotal role in shaping the future of Ghanaian banking services, enabling financial institutions to forge deeper connections with their customers and drive the industry toward greater innovation and success.

Disclaimer: The views expressed are personal views and doesn’t represent that of the media house or institution the writer works