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Will AI Rule Banking or Become the Next Crypto?
Artificial intelligence (AI) and cryptocurrency are two transformative technologies in the financial sector, but their current adoption rates differ significantly. While AI is rapidly being integrated into the banking sector, cryptocurrency remains on the periphery. A recent report by Rivel Banking Research examines consumer interest in crypto and AI, their trust in the payments mechanism, and how it aligns with the rise of AI in the industry.
Key points:
- Cryptocurrency adoption remains low due to regulatory uncertainty, market volatility, and low consumer participation.
- Only 10% of consumers are aware that their bank uses AI, highlighting the need for transparency and trust.
- AI has the potential to revolutionize customer service experiences and offer innovative products and business models in the financial industry.
The report highlights that cryptocurrency adoption rates are significantly lower than those of AI. Regulatory uncertainties, market volatility, and low consumer participation pose significant risks for financial institutions considering cryptocurrency integration. Only 19% of consumers in the Rivel Banking Research’s research had interest in storing and managing crypto through a traditional bank. AI, on the other hand, has rapidly gained popularity in the banking sector, promising personalized service, enhanced efficiency, and new ways of interacting with money.
EY research shows that financial services leaders believe AI will benefit the industry in three key ways: risk reduction from data processing, creation of new offerings and hyper-personalized marketing, and improving data management processes and accuracy. Consumers also demand better personalization in offerings and services. However, only 10% of consumers are aware that their bank uses AI, highlighting the need for banks to communicate their AI initiatives more effectively.
Banks can utilize AI to cement customer relationships and build trust. Implementing AI effectively can both retain current customers and attract new ones. AI offers the potential for banks to connect with customers, understand their needs, and offer tailored solutions that go beyond a one-size-fits-all approach. In the future of banking, building relationships and providing personalized interactions will be crucial.
