Mambu and Google Cloud report Artificial Intelligence will power the Bank of the Future

By Joy Dumasia

Mambu and Google cloud released a new report stating Artificial intelligence will deliver personalised experiences and reshape the world of banking as we know it. Driving this change is a combination of disruptive forces in the market. The report shows that the pandemic has increased consumer demand for always-on, personalised digital and mobile-first financial services. Unlike 20 years ago, traditional banks are no longer the go-to for those looking to move or manage their money.

With better access to cloud services and increasing competition from a new wave of FinTechs and non-traditional players, incumbent banks are under threat as consumers turn to neo banks and digital challengers searching for a better customer experience and utility-led services.

The report points to changing regulations, such as the introduction of open banking and PSD2, as forces accelerating the disintermediation of traditional banking providers. With dedicated regulation now emerging for FinTechs and digital banks in some jurisdictions, it’s a case of adapt or die for incumbent players. But banks have one asset on their side data. With around a billion credit card transactions every day, banks have access to one of the largest volumes of customer data of any industry. Using AI, banks can harness this information to unlock unparalleled insights and growth.

Eugene Danilkis, CEO at Mambu, said: “The report shows the world that banks were originally created to serve no longer exists. Historically built to last, today banks need to be built to change. If traditional players want to reposition themselves as lifestyle partners, in tune with the modern banking needs of their customers, then they must evolve rapidly – and without fear.”

Recently, IBS Intelligence reported that Mambu, the market-leading cloud-native SaaS banking platform, combined with Rich Data Corporation’s (RDC) cutting edge AI-powered decisioning SaaS platform, is set to enable innovative credit solutions in the local financial services sector.