To improve every aspect of your bank’s business at scale – optimize the customer experience to improve customer retention, streamline operational efficiency to reduce costs, and reduce credit and regulatory risk – you need a plan for unstructured data.
The most information-rich data in a banking organization, unstructured data makes up 80% of the total landscape. Speech and text is the most valuable as it is the one instance that customers tell the bank what they want and need. But this powerful data, including sentiment from a customer call, reasoning behind customer emails, and technical product details from an internal knowledge database, often goes to waste because traditional systems are not equipped to interpret it.
Deep learning empowered by modern AI tools like foundation models help banking organizations unlock the insights within unstructured data and evolve from being simply data-driven to turning data into value and becoming signal-oriented.
In today’s digitized banking system, consumers are far less likely to remain loyal when they experience dissatisfaction and distrust. Preventing churn and delivering great experiences requires strong onboarding (Know Your Customer) and a signal-oriented contact center powered by enriched and workflow-ready data flows.
— Péter Csányi
According to McKinsey, efforts to mitigate payments fraud, including mitigation expenses and foregone revenue, can account for 0.75% of a bank’s total revenue. According to public sources, this could represent more than a billion dollars per year. By augmenting payment transaction data with digital transaction data, banks can begin to see hidden relationships and alert customers to the first signs of fraud.
Most asset optimization models utilize well-defined and structured market data but are unable to incorporate unstructured data from sources such as SEC filings, earnings reports, news, social media, and other publicly available data. Processing these unstructured documents quickly is key to creating a differentiated trading strategy.