The lending and finance industries are facing increasing challenges that require a set of innovative solutions to stay ahead of the curve. The industry must leverage data to drive decision-making and operational strategies, from managing risk, reducing costs, and improving customer experience, to complying with national and international regulation schemes.
As a result, to achieve success in the lending and finance industry, it's crucial to have a deep understanding of customer needs and behaviors. Data analysis can provide valuable insights into customer preferences and help lenders tailor their products and services accordingly.
At MetaMap, we understand the challenges businesses face when it comes to collecting, processing, and making quick and accurate decisions with millions of end-user data points. The question that needs to be resolved is how to achieve this without incurring significant costs.
In this iteration of our MetaChat, our experts Nicolás Echeguren - Revenue Enablement Specialist, Dario Calderón Pineda - Sales Enablement Specialist, and Samuel Aiza - Solution Architect, explored how Artificial intelligence (AI)-powered tools can be seamlessly integrated into your daily business operations to tackle the challenges faced by these – and many others – industries.
By leveraging data, AI tools can reduce costs and enhance the onboarding experience for customers. In our latest webinar, our experts provided us with insights into the latest technologies and tools that can be used to improve risk assessment, streamline operations, and drive success in the lending industry.
“In today's digital world, data is everywhere, and user information can and should be leveraged within your company. However, this data is often unstructured and can be found in many databases and sources scattered worldwide,”
mentioned Samuel Aiza - Solution Architect at MetaMap.
From 0 to 1: Three transformative trends in AI for the financial services industry
As our experts mentioned, staying ahead of the curve requires innovative solutions to keep up with the constantly evolving market and consumer changes in the lending and finance industries. While these challenges can be daunting for many, the first thing that comes to mind for many leaders is the transformative power of AI technology.
Beyond its reputation as a disruptive force, AI technology can provide a competitive edge by streamlining processes and providing valuable insights into customer preferences and behavior.
As Dario Calderon, MetaMap’s Sales Enablement Specialist, mentioned, "Rather than fearing the disruptive potential of AI, we will explore how you can harness its power to streamline your processes and prepare for the changes that this technology will bring to the market."
So, here’re three trends and their challenges to help you discover the power of the data through AI:
1) Personalization 2.0: leveraging AI tools for a tailored user experience
In today's digital age, providing a personalized user experience is crucial to engaging customers and building brand loyalty, even generating 40 percent more revenue, according to McKinsey & Company.
However, achieving a 100% personalized user experience requires more than matching user needs, it also requires AI technology to have the ability to accompany users during their decision-making process throughout the loan origination and repayment process and in savings and consumption decisions.
The power of data can help businesses achieve this level of sophistication. By leveraging AI tools, companies can streamline their onboarding and compliance processes and provide a tailored user experience that meets their customers' unique needs and preferences.
The first part of achieving a personalized user experience is relatively simple. Many AI tools on the market can help businesses with their onboarding and compliance processes, allowing users immediate access to your services while remaining compliant and risk-free in the context of continuously complying with national and international regulations.
The second part, however, requires more advanced data collection and platform integration. For example, businesses can leverage AI to provide personalized recommendations and guidance throughout the entire customer journey by collecting and analyzing customer behavior and preferences data. This can include customized product recommendations, targeted marketing, and more.
2) The new compliance: innovations for navigating the evolving regulatory landscape
Understanding and complying with regulations is crucial to the success of any business. This is particularly true for companies operating in multiple markets, where compliance requirements vary significantly.
Properly assessing what product is best for a consumer requires a deep understanding of the regulatory scheme where your company operates. Without this understanding, navigating the complex web of regulations and ensuring that your products comply with all relevant requirements can be difficult but not impossible if you rely on the perfect ally.
Compliance can quickly become overwhelming as the number of laws and regulations coming into practice simultaneously in many markets continues to grow.
“The number of laws and regulations coming into practice simultaneously in many markets your company might be working in is getting out of control. Not only in America, if not as well in Africa, Europe, and Asia”,
mentioned Nicolas Echeguren - Revenue Enablement Specialist at MetaMap.
To address these challenges, businesses must develop strategies for complying with regulations effectively and efficiently. This may involve leveraging technology solutions, such as compliance software or AI-powered tools, to streamline compliance processes and ensure that all relevant regulations are met simultaneously.
As a general example, compliance software powered by AI can automate processes such as risk identification, control assessment, and compliance monitoring, enabling companies to save time and money in managing their compliance processes. By automating these tasks, the risk of non-compliance and associated financial penalties is reduced.
3) The high cost of doing business
As our experts mentioned, complying with regulatory requirements is becoming increasingly complex and challenging. Moreover, with regulations changing rapidly and data spread across multiple databases, financial services companies often struggle to cross-sell their products and predict customer behavior.
But they are also struggling with the high cost of doing business that all these different processes add to their primary functions.
However, what is causing these costs to increase?
- Accessing relevant customer data, like risk profiles, credit scores, and government checks, across multiple databases is complex.
- Financial services are highly emotional purchases, resulting in complex decision trees that are difficult to automate. Therefore, you must deploy many customer services agents constantly contacting your users to determine what’s best for them. Also, this is pretty hard to be translated into valuable data.
How can AI solve this challenge:
- AI collects data from multiple national and international sources, broadening information access for informed decision-making.
- AI structures unstructured personal decision data with machine learning and psychological models, enabling data-driven decisions.
- AI simplifies complex compliance schemes, tailoring them to specific market and product needs for long-term compliance.
- AI streamlines compliance and decision-making, reducing conversion, operational, and regulation costs for improved business efficiency
MetaMap’s AI-powered tools
As we mentioned, nowadays, data is everywhere, yet it's often unstructured and scattered across numerous databases. MetaMap is a solution that addresses this issue by utilizing cutting-edge AI-powered tools to extract final user data from 1200+ official data sources, cross-check it with biometrics data or government id checks, monitor it, and verify it.
We understand that you are well aware of the importance of data in achieving your business objectives and more after listening to the insights that our experts left us in the MetaChat.
That’s why in MetaMap, we deeply believe that our battle-tested tools can help you leverage your processes to enhance your KPIs and achieve your goals. Our AI-powered tools provide a unique opportunity to streamline your risk data management and improve your onboarding process while being fully compliant worldwide, saving you time and resources.
Don't miss out on the opportunity to see how MetaMap can take advantage of the data and AI technology to support and improve your KPIs. Start for free today.