consumer protection
financial inclusion
aicx

Proto to deliver AICX technical session at the Alliance for Financial Inclusion's Consumer Empowerment and Market Conduct Working Group

San Salvador, El Salvador

Proto will deliver the keynote technical session at the Alliance for Financial Inclusion's Consumer Empowerment and Market Conduct Working Group (CEMCWG) regarding the use of its AI Customer Experience (AICX) technology by financial supervisory authorities to improve consumer protection. Register for the session.

Description
The development of artificial intelligence (AI) to enhance the overall financial customer experience is increasing significantly in the recent years. A 2020 report highlights the following trends on AI customer experience (AICX): 94% organizations say that improving the customer experience is the key objective behind launching new AI-enabled initiatives and customers are becoming comfortable in interacting with AI on a regular basis; 51% have daily AI-enabled interactions (like talking to a chatbot) with banking and insurance firms; 78% customers expect to increase touchless interactions as the COVID-19 crisis prolongs; financial services firms have already perceived the positive impact on their bottom-line of implementing AI in customer-facing functions, including reduced cost of operations (13%) and increased revenue per customer (10%).

While implementing AI may still be a challenge for traditional banking institutions, financial technology (FinTech) companies became a main player in delivering AI-driven products and services to enhance the processes around financial services and financial customer experience. In a financial inclusion perspective, AI is a powerful tool to overcome traditional inclusion challenges through, for instance, the use of tiered KYC in customer identification process; alternative data sources and credit history analytics via person's social network, call history and mobile phone top ups.

Moreover, the COVID-19 crisis has had swift and wide-ranging effects on financial consumer behavior, empowerment and resilience, felt hardest by the most vulnerable segments who are running high risks such as losing their income, increased trouble of paying bills, scams, fraud and overindebtness. These COVID-19-driven modifications in customer behaviors offer a unique opportunity for financial institutions in AICX implementation. In addition to better KYC processes, AI can support financial institutions in various areas, including documents processing, more personalized financial products and services and consumer protection. On the latter, AI appears as a key instrument in real-time fraud detection and fraud prevention solutions. As more consumers reduce the use of cash and increase the usage of digital payment (contactless cards, digital wallets etc), cyber fraud is on the rise.

Additionally, AICX can support financial institutions’ complaint handling and help and redress for financial customer. AI and chatbots are instrumental in creating an optimal customer experience in the banking and financial services space as they’re fast, efficient and cost-effective. AICX can enhance consumer complaints management by providing bottom-of-the-pyramid consumers with recourse channels, detect misconduct by tracking trends in complaints to find and address to market misconduct, ensure resolution by monitoring and compel resolution across regulated institutions. AI based solutions will both help positively transform the customer experience, as well as help to ensure that the bank remains in compliance with various industry regulations.

Objectives

The audience will gain a deep understanding of the concept of AI Customer Experience and how it relates to financial inclusion; understand, through practical financial institution examples, how a country can benefit from AICX applied to financial customer protection; and, bring these learnings into perspective with most vulnerable population groups and the current global crisis of COVID-19.