Advances in AI and ML are making once elusive technology accessible to financial institutions in the community


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On July 20, former Amazon executive chairman and richest man in the world, Jeffrey Bezos, reached the edge of space with a diverse and well-paid crew that ranged from the youngest to the oldest. to have never visited space. The Cosmic Mission, called Blue Origin, was a self-funded project that Bezos and expert technicians have been developing for over 20 years.

Less than 10 days before Bezos’ historic journey, fellow billionaire Richard Branson accomplished a similar feat, reaching the outskirts of Earth’s atmosphere on his own self-funded space mission, Virgin Galactic. The stars continue to be the last frontier where technology and man are pushed to their limits.

The emergence of individuals and private companies building their own space missions shows the evolution of technology and how much more accessible (albeit for the wealthiest individuals) and achievable space travel is after more than a year. half a century of its creation and improvement.

Space industry expert and advocate Robert Jacobson explained that space exploration has “the ability to deliver a triple bottom line, or ROIII: return on investment, innovation and inspiration.”

While advances in digital technology in the marketing industry are a far cry from the literally astronomical achievements of space travel, their broad impact on the industry cannot be underestimated.

Investing in sophisticated marketing technology and pushing the boundaries of what your AI-powered advertising campaigns can accomplish are likely to generate impressive ROI. Institutions that choose to take the leap by relying on artificial intelligence in marketing technology often see a return on investment of four to ten times their investment. Previously reserved for ‘billionaire class’ organizations, emerging digital marketing technology serves a different purpose – making this sophistication and automation accessible to businesses and organizations of all sizes. Given the results demonstrated by financial institutions that have taken the plunge, community banks and credit unions today should seriously consider using the cutting edge digital marketing technology that big banks have been using for years. In the modern hyper-competitive environment, they should also consider what it means for their growth if they choose not to take this step.

For years, large financial institutions have had the luxury of being able to spend huge sums of money on technological advances that small banks and credit unions simply cannot afford. In 2019, according to Forbes, JP Morgan and Bank of America spent more than $ 10 billion on technology alone.

While most small community institutions are not equipped to invest in this level of development, what they can do today is partner with FinTech organizations that offer such solutions, which are much more accessible and affordable than ever. This allows community institutions to compete on a level playing field in an industry that has been dominated by mega-FIs. It would not be wrong to say that there are no more reasons (excuses?) Not to make this type of crucial technological investment. While community banks and credit unions choose not to invest, they are also paving the way for their banking consumers to make choices – for the products and services of other financial institutions, i.e. those that do. these investments and get high returns.

Over the past decade, AI and machine learning (ML) have become much more prevalent and crucial for understanding data and strategizing for future marketing plans. According to an article in Harvard business review, three of the top five goals for companies that implemented AI were related to marketing. AI-powered predictive campaigns allow financial institutions to present the most meaningful and popular offers to individual account holders with virtually no effort.

By using a predictive model to target specific audiences with the highest propensity to purchase particular products, financial institutions can effortlessly but more accurately calculate the likelihood that customers and individual members will open specific accounts. Predictive modeling enables financial institutions to run much more effective and successful marketing campaigns, all without increasing staff.

AI and M-based predictive campaigns use years of demographic and campaign information, and automate this process to provide clues about consumer behavior and, therefore, their likelihood of purchasing a given product, this which optimizes the messaging of the bank or credit union to each customer or individual member with very little effort. This technology continuously monitors, adjusts and optimizes campaigns using up-to-date ML models, increasing the likelihood that the institution’s campaigns will be effective and successful.

Not so long ago, these strategies, tactics and technologies were reserved for a particular category of very large financial institutions. What made Bezos and Branson’s space travel special wasn’t the technology for space travel. NASA accomplished this over 60 years ago. What made it interesting was the ability of individuals (albeit billionaires!) To accomplish what only the largest national superpowers were previously capable of. And really, it’s about to make it accessible to the (lower!) Class of multimillionaires then and so on, until it’s finally available to the common man. Given the rapid pace of space investment and technological development, this is on the horizon and perhaps in the lifespan of many people.

Likewise, these advanced digital marketing innovations with their automation and built-in intelligence allow financial institutions of all sizes to use techniques and information previously reserved only for the largest institutions. Combined with rich performance analytics, they provide financial institutions with a full digital marketing lifecycle implementation, truly turning marketing departments into profit centers. Therefore, it would be unwise and unwise not to seriously assess and consider adopting this now accessible technology. Advances in AI / ML based on earlier innovations that used business intelligence for targeted and intelligent campaigns are already leading to high ROI and growth for many financial institutions.

Of course, digital marketing technology is not the same as space technology – it certainly isn’t as mystical or esoteric. But make no mistake, enabling sophisticated advancements that leverage AI and ML accessible to community-based financial institutions is a big step forward in leveling the playing field in financial services. There is no doubt that many financial institutions will benefit from this access. And that’s what progress will look like.

Preetha Pulusani Preetha Pulusani

Preetha Pulusani is CEO of DeepTarget, a Hunstville, Alabama-based fintech that develops and deploys a customer engagement and cross-selling platform for credit unions and banks.

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