The future is already here. New technologies like AI, large language models, crypto, and blockchain services have rapidly become an integral part of our daily lives, seamlessly blending into routine tasks. At Markswebb, we are always keen to track these emerging trends and explore their implications in digital environments.
Right now, we are focused on studying one of the most advanced digital service markets in the world - mobile banking in the UAE.
In this insight, we’d like to share our observations on how Everyday AI is incorporated into daily banking operations.
The positive impact of AI on UAE banking
It’s worth noting that the integration of artificial intelligence (AI) into the banking sector in the UAE has evolved from being a cutting-edge innovation to a fundamental part of everyday activities. This transformation aligns with the UAE’s broader vision to establish itself as a global AI leader by 2031, as outlined in the UAE Artificial Intelligence Strategy 2031. The strategy emphasizes embedding AI across sectors like banking to enhance operational efficiency, customer experience, and decision-making processes.
To date, in the UAE banking sector, a number of notable benefits can be identified:
- Operational efficiency: AI automates routine banking tasks such as transaction processing, fraud detection, and compliance monitoring, reducing the likelihood of human error and lowering operational costs.
- Enhanced customer support: AI-driven chatbots provide immediate, 24/7 customer assistance, improving response times and allowing customers to resolve queries without human intervention.
- Personalized services: AI algorithms analyze customer behavior and transaction patterns to offer personalized banking services, such as tailored investment options or spending insights.
- Risk management: AI helps banks assess credit risk more accurately by analyzing a broader range of data, improving loan approvals and reducing default rates.
Let's look at specific implementations.
Emirates NBD
In the UAE, Emirates NBD is at the forefront of integrating AI into its daily banking operations, using advanced technologies to enhance productivity, innovation, and customer experience. The bank’s approach to AI is multifaceted, leveraging generative AI across various business functions - not only to enhance CX but also to streamline processes for its employees.
- For instance, the bank uses GitHub Copilot X to improve software development processes, enabling its IT teams to deliver robust solutions more efficiently. This tool not only accelerates coding but also improves the quality and innovation of new software products.
- Additionally, Emirates NBD has integrated Microsoft 365 Copilot, a generative AI-powered tool designed to enhance workplace productivity by automating repetitive tasks and assisting with complex decision-making processes. This technology is deployed across the organization to help employees focus on higher-level tasks, ultimately creating a more intelligent and agile work environment.
- Moreover, the bank has implemented ChatGPT across customer service departments, including contact centers, marketing, and compliance. ChatGPT enhances customer interactions by offering personalized support, helping to streamline business processes, and improving operational efficiency.
Emirates NBD is also utilizing API banking for business clients and corporate banking. API banking allows the bank to share its financial services with third-party platforms via a secure set of protocols, enabling better data integration, personalized services, and faster financial transactions. This approach enhances the automation of banking processes, offering companies the ability to build products with improved user experience and connectivity.
By providing APIs, Emirates NBD facilitates real-time banking and enables businesses to automate financial tasks without the need for constant manual input. This not only increases operational efficiency for the bank and its clients but also drives innovation, allowing business owners to focus more on scaling their operations rather than on banking tasks. Essentially, API banking allows Emirates NBD to remain competitive while heightening the overall customer experience by offering seamless and technologically advanced services.
RAKBANK
RAKBANK is another major player in the UAE banking sector embracing AI to transform its operations.
- RAKBANK has employed AI to enhance compliance with regulatory standards, particularly focusing on anti-money laundering (AML) and combatting the financing of terrorism (CFT). Through the implementation of AI tools, the bank can process large volumes of data in real-time, identifying suspicious patterns more effectively and reducing the risk of fraudulent activities. AI models like GPT-4 help analyze complex datasets to detect anomalies, allowing RAKBANK to act proactively in preventing financial crimes.
- Additionally, RAKBANK’s use of the JAIS Arabic LLM is pivotal in transforming customer interactions, particularly in a region where Arabic is the dominant language. The AI tool enhances customer engagement by providing personalized, accurate, and timely responses across various communication channels. This helps RAKBANK build stronger relationships with clients while improving the overall customer experience. AI is also employed to handle routine queries and support call center operations, ensuring that more complex inquiries are swiftly escalated to human agents.
- By embedding AI across these key functions, RAKBANK is able to offer smarter, more secure services, while also maintaining high levels of operational efficiency. AI tools reduce the manual burden on employees, allowing them to focus on more strategic tasks. The use of AI-driven marketing campaigns further allows the bank to create more targeted and effective customer outreach, fostering deeper engagement and driving business growth.
The evolution of UX challenges in AI-driven banking
The integration of Everyday AI into banking operations in the UAE is an ongoing, transformative process. While it brings remarkable innovations that enhance efficiency, personalization, and security, these advancements also come with challenges. Simply put, the more advanced the kill-feature, the more complex the potential kill-effects can be.
- AI-powered banking solutions often lead to minor inconsistencies in AI systems that affect user experience. For example, AI chatbots can misinterpret complex queries, leading to user frustration despite their efficiency in handling routine banking transactions.
- Generative AI models used to improve customer service may lack the contextual understanding needed for more nuanced financial advice, impacting customer trust.
- AI algorithms analyze vast amounts of data, enabling fraud detection and predictive analytics. However, these AI applications can result in overly cautious banking operations, flagging legitimate transactions as fraudulent. This disrupts the flow of financial products and services, complicating the customer journey. As AI systems evolve, the potential for these issues grows, particularly as banks strive to balance AI use cases with customer expectations in the future of banking.
- The banking and finance sector faces the challenge of humanizing the interactions AI is reshaping, such as ensuring AI in credit assessments remains transparent and free of bias. Additionally, AI in the banking industry introduces challenges related to the interpretation of collected banking data, where AI algorithms may overlook certain user-specific nuances, leading to poor personalization of services. Finally, leveraging AI for digital banking introduces complexities in maintaining the seamless integration of AI technologies while avoiding overly technical or impersonal user interactions.
Drowing the line
At Markswebb, we specialize in helping banks navigate these complexities. Our experts conduct thorough UX audits for both personal and business banking services, identifying areas of improvement and optimizing the customer journey. Additionally, we offer extensive audits of chatbot systems, ensuring they deliver a more human-like, intuitive interaction. With years of research and collaboration with leading banks, we provide actionable insights that allow product teams to enhance their services, eliminate pain points, and improve customer satisfaction. When it comes to staying at the forefront of AI-driven banking, Markswebb is the partner that helps you innovate while minimizing negative side effects.
