Banks and other fintech companies have long been at the forefront of all businesses in adopting the latest technology, and their use of AI is no exception. AI promises to improve security measures, process transactions more efficiently, and personalize customer service. But in reality, is it truly flawless? While AI can strengthen cybersecurity defenses, it also comes with certain risks as it involves sensitive data.
This raises an important question, as many users are concerned about AI's potential control over their personal information and fear possible data leaks and misuse. The latest statistics show that 47% of consumers cite security risks as their main concern regarding the use of AI in banking. So how can banks mitigate these concerns and proactively communicate the role of AI to their customers? This is one of the main questions we want to address in this article.
Addressing customer concerns
Many banks are exploring how artificial intelligence can be used to detect fraud in real time, automate routine tasks, and deliver the customized financial advice promised based on individual customer data. Despite the significant benefits, many customers are concerned that AI systems that use large amounts of sensitive data could expose their personal information.
All I can say is that such fears are completely understandable. The main issue with all the concerns is people’s lack of knowledge. As we know from the roots of human psychology, it is natural that new things seem scary to us. However, if we consider not only our feelings but also the facts (the security protocols that banks have implemented to protect customer data are very strong), these concerns are largely unfounded.
Modern AI systems are designed with strong encryption methods and multi-layered security frameworks that significantly reduce the risk of data leakage. Moreover, banks prioritize the confidentiality and integrity of customer information and regularly update their security measures to address emerging threats.
In this context, it can be asserted that transparency is much more important than security, as most fintechs already pay a lot of attention to protecting personal data. Indeed, by taking steps to clearly explain to customers and employees how their AI systems work and what they do to protect user data, banks can help people understand the technology itself, which of course helps banks build trust among their customers.
My main observation is that maintaining an open dialogue is essential in any business that deals with people. Clear communication about data handling practices and accessible customer support all contribute to making customers feel more informed and reassured. It will take some time for users to start seeing the benefits of AI. Then, I think initial concerns will diminish and AI-driven banking and fintech services will become more widely accepted.
5 Tips for Establishing Positive AI Communication
As I mentioned earlier, proper and clear communication is key to gaining customer trust. I can suggest to my clients some strategic steps that banks can take when it comes to leveraging AI in their operations. Let's take a closer look.
First, it may seem obvious, but banks and fintech companies should establish AI communications departments staffed with experts in AI, cybersecurity, and public relations. These teams will be responsible for crafting accurate and easy-to-understand messaging around the use of AI. Having a dedicated team that understands the technical aspects as well as the communications aspects will enable banks to effectively resolve customer concerns and issues.
Secondly, the best improvisation is a prepared improvisation. In the long run, it is advisable to create a comprehensive and complete plan outlining what information will be shared, by what means, through what channels, by whom and to what audiences. Having a structured plan will enable banks to maintain consistent and proactive communication and ensure that customers are always informed about the latest AI advancements and security measures. Thus, there is no systemless activity.
Third, banks should maintain a high level of transparency. And this doesn't just apply to AI. They can do so by publishing detailed reports, sharing important updates in the media, and keeping investors and other customers informed. Again, openness about AI operations helps build trust, giving customers confidence that their data is being handled appropriately.
Another step towards openness is to monitor and act on customer feedback about the AI. Responding quickly to issues demonstrates the bank's commitment to safety and customer satisfaction. This lets users know their concerns are taken seriously and will be resolved quickly, greatly increasing their trust.
Finally, banks should consider regularly publishing content that educates customers on how AI works and the benefits it can bring. This can be anything: articles, videos, podcasts, etc. Importantly, this content addresses common misconceptions and fears surrounding AI. Banks should also be prepared to provide customers with strong arguments and facts to explain why there is no need to worry. Continuing education allows banks to help customers better understand the technology, which can have a positive impact on their banking experience.
Transparent communication is the solid foundation for client trust
Of course, artificial intelligence is a promising technology that offers many benefits. But without a robust communication strategy in place, it will be difficult to reassure customers that AI is safe and useful. This means that banks and fintechs should be transparent about their use of AI and their data protection measures, and proactively engage with customers to address any ongoing concerns.
If banks can implement any (or all) of the strategies outlined in this article, they will be able to better explain the role of AI in their operations, build trust and acceptance among their users, and most importantly, build customer trust.
