By Xav Harrigin

The Independent Community Bankers of America (ICBA) ThinkTECH Accelerator Demo Day is a nationally acclaimed program that promotes early-stage solutions designed specifically for community banks. The program is known for its commitment to fostering innovation in the banking industry, connecting the most innovative fintech companies with community bankers and industry leaders. At a recent Demo Day, Parker Steed, VP of Sales at Micronotes, delivered a compelling pitch that showcased the company’s innovative, AI-enabled, cloud-based marketing automation solutions for financial institutions (https://www.youtube.com/watch?v=Y_Mt84zq0qI, starts at 39:32).

Steed began the pitch by reflecting on the evolution of banking from in-person branch visits to digital interactions. He shared a personal anecdote about how banking has changed over the years, highlighting the importance of Micronotes’ mission to help community banks maintain strong connections with their customers in an increasingly digital world. He then emphasized the importance of emulating the traditional branch conversations in online and mobile banking environments, a feat made possible by Micronotes.ai’s cutting-edge technology.

Micronotes.ai, based in Boston, serves about 140 community banks in the U.S. The company’s growth has been supported by a distribution relationship with Fiserv and investments from Experian Ventures, TTVCapital, and most recently, Bank Tech Ventures. Being part of the ThinkTECH Accelerator has further enabled Micronotes.ai to connect community banks with their customers using big data, advanced analytics, and engagement technologies.

Steed’s pitch focused on two key areas: deposits and loans. He explained how Micronotes.ai’s technology identifies opportunities for exceptional deposits and initiates conversations with customers to retain those deposits. The company’s AI-driven marketing automation also helps banks predict customer behaviors such as delinquency and attrition, enabling banks to proactively offer solutions like overdraft protection products and retention strategies.

The Micronotes.ai solution goes beyond traditional banner ads in online and mobile banking. It offers 26X the click-through rate (CTR) of banners, more engagement, and most importantly, it starts conversations that enable banks to learn from and about their customers. This approach helps to keep the “community” in community banking.

Steed also highlighted how Micronotes.ai can help uncover “camouflaged small businesses” through the retail banking side of a bank. By identifying these businesses, banks can cross-sell products like small business credit cards or loans without increasing headcount.

The pitch concluded with a demonstration of how Micronotes.ai uses Experian credit data to identify creditworthy customers and find meaningful savings if they were to consolidate their loans with the bank. This personalized approach not only enhances customer experience but also helps banks retain and grow their customer base.

In a world where customers are constantly bombarded by ads from competitors and large fintechs, Micronotes.ai offers a solution that keeps community banks competitive and connected with their customers. It’s not just about retaining and growing deposits or booking better loans; it’s about starting meaningful conversations, developing relationships, and building trust.

Micronotes.ai is revolutionizing the way community banks engage with their customers. By leveraging big data, AI and machine learning, the company is helping banks to better understand their customers, predict their needs, and offer personalized financial solutions. The result is a win-win situation: customers feel understood and valued, while banks increase their revenue and deepen their customer relationships.

If you’re a community bank looking to take your data and make it actionable, Micronotes.ai is ready to help. As Parker Steed concluded in his pitch, “If you need to retain and grow deposits or book better loans, give us a call, we’d be happy to help.”

By Xav Harrigin

Artificial Intelligence (AI), particularly its subset, Generative AI, has been a prominent subject of interest in 2023, as noted by McKinsey, Congress reports, and the World Economic Forum. Generative AI refers to AI systems, especially those using machine learning and trained on large volumes of data, that are capable of generating new content. This contrasts with other AI systems that primarily analyze or process existing data. Generative AI can create a wide array of outputs, from writing text and code to creating videos and 3D simulations. The potential of generative AI is vast, with its ability to automate, augment human or machine tasks, and autonomously execute business and IT processes.

In the banking sector, generative AI is driving significant transformations. It’s been a few months since the release of OpenAI’s ChatGPT, and already, the banking industry is seeing the benefits. Generative AI is reshaping customer service, risk assessment, and personalized banking experiences. According to a Gartner research paper, as of April 2023, only 7% of banking executives reported no plans to incorporate generative AI into their business, a steep decline from 46% just a few months prior.

However, the implementation of AI in banking is not without its challenges. One of the main obstacles preventing banks from deploying AI capabilities at scale is the lack of a clear strategy for AI implementation. Banks need to transform to become AI-first, but this requires a significant shift in mindset and operations. Another challenge is the risk associated with AI. The use of AI can lead to new types of risks, such as algorithmic bias and data privacy issues, which banks need to manage effectively.

The future of generative AI in banking is promising, with potential applications that could revolutionize the industry. For instance, generative AI could be used in Know Your Customer (KYC) and Anti-Money Laundering (AML) operations, where it could have a significant impact. The real holy grail in banking will be using generative AI to radically reduce the cost of programming while dramatically improving the speed of development, testing, and documenting code.

However, the adoption of generative AI in banking is not without challenges and ethical considerations. Organizations must prioritize the responsible use of generative AI by ensuring it is accurate, safe, honest, empowering, and sustainable. There are concerns about security risks and biased outcomes. For example, the risk of harm when a generative AI chatbot gives incorrect instructions is much higher in a banking context than in other scenarios. If not designed and deployed with clear ethical guidelines, generative AI can have unintended consequences and potentially cause real harm.

Government Regulations and Their Impact on AI in Banking

Government regulations play a crucial role in shaping the future of AI in banking. As reported by CNN, The Register, and PBS, lawmakers worldwide are recognizing the need for swift action to regulate AI technologies. US Senate Majority Leader Chuck Schumer has called for ambitious bipartisan legislation to maximize the benefits of AI and mitigate significant risks. The proposed legislation aims to protect US elections from AI-generated misinformation, shield US workers and intellectual property, prevent exploitation by AI algorithms, and create new guardrails to ward off bad actors.

In Australia, the federal government has outlined its intention to regulate AI, stating that there are gaps in existing law and new forms of AI technology will need safeguards to protect society. The government is considering whether to adopt AI risk classifications like those being developed in Canada and the EU. The proposed system would classify AI tools as low, medium, or high risk, with increasing obligations for higher risk classifications.

These developments indicate that government regulations will play a significant role in shaping the future of AI in banking. Banks will need to navigate these regulations while leveraging the benefits of AI. The regulations aim to ensure that AI technologies are used responsibly and ethically, minimizing risks such as data privacy issues, algorithmic bias, and potential misuse.

Navigating Government Regulations in AI-Powered Banking

Navigating government regulations in AI-powered banking involves understanding and complying with these regulations while leveraging AI’s benefits. Banks need to develop a clear strategy for AI implementation that aligns with regulatory requirements. This strategy should include measures to manage the risks associated with AI, such as data privacy issues and algorithmic bias.

Banks can leverage AI in compliance and risk management. For instance, AI can be used to automate compliance tasks, reducing the risk of human error. AI can also be used to analyze large volumes of data to identify potential risks, enabling banks to take proactive measures to mitigate these risks.

The Future of AI in Banking Amid Government Regulations

The future of AI in banking is promising, but it requires a careful balance between innovation and regulatory compliance. Despite the challenges, banks recognize the potential of AI to revolutionize the industry. With the right strategy and approach, banks can navigate the complex landscape of government regulations and leverage the benefits of AI to revolutionize the industry.

By Xav Harrigin – Micronotes

The Dawn of AI and Automation in Financial Marketing

In the digital epoch, marketing automation, especially within the data-rich financial services industry, has become a necessity rather than a luxury in 2023, empowering financial institutions to remain competitive. This technology enables teams to convert raw data into actions, allowing finance leaders to critically evaluate business strategies, implement solutions, and cultivate stronger business relationships. Artificial Intelligence (AI), the cornerstone of this transformation, extends beyond its traditional role of executing tasks such as identifying optimal advertising placements. As the driving force behind marketing automation trends in 2023, AI facilitates personalization, a key customer demand. A 2021 McKinsey & Co research substantiates this, revealing that 71% of customers anticipate personalized interactions from companies, with those excelling at personalization generating 40 percent more revenue from these activities than their average counterparts. Thus, AI emerges as the indispensable tool enabling this level of personalization.

The Imperative for Automation in Financial Institution Marketing

In 2023, financial institutions face a myriad of marketing challenges. These include budget constraints, the need for hyper-personalized content marketing, and the shift toward digitalized conversational marketing. Managing large customer databases is a daunting task, with the need to align marketing strategies with customer needs and organizational priorities. Furthermore, the push for personalization has intensified, with customers demanding more than just a name on an email subject line. Balancing digitization with evolving risks and sustainability is another challenge, especially in the wake of the pandemic that accelerated the adoption of digital tools.

However, automation offers a promising solution to these challenges. Marketing automation is a crucial way for companies to save time and money. By automating both complex and simple processes, teams are given time to spend on more critical tasks. According to The Business Research Company, the global marketing automation market size saw a compound annual growth rate of 12.3% between 2022 and 2023. This rise in the adoption rate of automation signifies a shift towards putting certain aspects of strategy on autopilot, allowing for more efficient resource allocation and the ability to focus on other sales strategies.

The Indispensable Role of AI in Automating Financial Institution Marketing

Artificial Intelligence (AI) has become an indispensable tool in analyzing large amounts of data to provide insights and make predictions. As noted by the Harvard Business Review in 2023, AI’s power to gather, analyze, and utilize enormous volumes of individual customer data has been recognized for its ability to achieve precision and scale in personalization. This sentiment is echoed by Persado in 2023, stating that AI-powered marketing tools are infinitely smarter than their predecessors, with traditional marketing tools using human-generated algorithms that tell machines what to do.

AI-powered tools such as chatbots, recommendation systems, and predictive analytics have been instrumental in improving customer service, personalizing marketing campaigns, and optimizing marketing strategies. In the realm of regulatory compliance, AI has been a game-changer. KPMG, in 2023, emphasized the importance of AI in ensuring resilience and vigilance in the face of evolving regulatory landscapes. Thomson Reuters also highlighted in 2023 how AI has helped financial institutions to do more with less, managing the growing volume and breadth of regulation while dealing with new markets, products, and threats created by technology.

The Future of AI in Financial Institution Marketing

In 2023, several emerging trends in AI and automation have been transforming the marketing landscape. Machine learning and natural language processing have been at the forefront of these advancements. Machine learning has been instrumental in analyzing customer behavior and predicting future trends, while natural language processing has been used to understand and respond to customer queries in real-time.

However, the adoption of AI in marketing also comes with potential challenges and ethical considerations. As highlighted by the Harvard Business Review in 2023, generative AI, while popular, comes with a degree of ethical risk. Organizations must prioritize the responsible use of AI to avoid potential pitfalls such as bias, privacy invasion, and misuse of data. Forbes also noted in 2023 that ethical AI has been a concern for many years, and global jurisdictions are finally starting to accelerate AI ethics legislation. This means that businesses must not only focus on leveraging AI for marketing but also ensure they are doing so in an ethical and legally compliant manner.

The Future of Financial Institution Marketing with AI and Automation

The role of AI and automation in financial institution marketing is not just transformative, but revolutionary. AI has the potential to analyze vast amounts of data, provide valuable insights, make accurate predictions, and most importantly, execute on those insights. AI-powered tools such as chatbots, recommendation systems, and conversational marketing automation systems are improving customer service, personalizing marketing campaigns, and optimizing marketing strategies. However, as we embrace these emerging trends in AI and automation, it is imperative for businesses to not only leverage AI for marketing but also ensure they are doing so in an ethical and legally compliant manner. Financial institutions that can effectively harness the power of these technologies while navigating their complexities will be the ones to lead the industry.