Banks and other fintech companies have for some time been at the forefront across all companies in the implementation of cutting-edge technologies. And the use of AI is no exception here. It promises improved security measures, efficient transaction processing and personalized customer service. However, is it so perfect when it comes to reality? While artificial intelligence can strengthen cybersecurity defenses, it also poses certain risks, particularly due to its involvement with sensitive data.
This raises serious questions, as many users fear the prospect of AI managing their personal data and worry about potential data breaches and misuse. According to the latest statistics, 47% of consumers cite security risks as their main concern with using AI in banking. So how can banks alleviate these concerns and proactively communicate the role of AI to their clients? This is one of the main questions I would like to touch on in this article.
Addressing customer concerns
Many banks are devising ways to use artificial intelligence to detect fraudulent activity in real-time, automate routine tasks and offer what they promise is financial advice tailored based on individual customer data. Despite the substantial benefits, many customers are concerned that AI systems that use tons of sensitive data could potentially expose their private data.
I can say that such concerns are completely understandable. The main problem of all concerns is people’s lack of knowledge. As we know from the basics of human psychology – it’s normal to find the new scary. However, if we take into account not only the senses, but also the facts (and the fact is that the security protocols that banks put in place to protect customer data are really strong), these fears are largely unfounded.
Modern AI systems are designed using robust encryption methods and multi-layered security frameworks that greatly reduce the risk of data breaches. In addition, banks prioritize the confidentiality and integrity of customer information and regularly update security measures to respond to emerging threats.
In this context, I can assure you that transparency is much more important than security, because most fintechs already pay a lot of attention to the security of personal data. In fact, by taking steps to clearly explain to clients and employees how AI systems work and what they do to protect user data, banks can help people understand the technology itself, which of course can help banks build trust among clients.
My main point is that keeping an open dialogue is essential when it comes to any business that involves working with people. Clear communication about data handling practices and accessible customer support can all contribute to a more informed and reassured customer. It should take some time for users to experience the benefits of AI, and I believe their initial fears will subside, leading to wider adoption of AI-based banking and fintech services.
5 tips for establishing proactive AI communication
As I said before, the key to customer trust is proper and clear communication. I can recommend several strategic measures that banks can implement to clients regarding the use of AI in their operations. So let’s dive deeper into them.
First, it may seem obvious, but banks and fintechs should create an AI communications department that has experts in AI, cybersecurity, and public relations. These teams will be responsible for producing accurate and easy-to-understand reports on AI usage. With a dedicated team that understands not only the technical but rather the communication aspects, banks can ensure that clients’ concerns and issues are effectively addressed.
Second, the best improv is a prepared improv, you know? I would recommend developing a comprehensive and complete plan that outlines in the long term: what information will be shared, by what means, channels, by whom and to what target group. With a structured plan, banks can maintain consistent and proactive communication and ensure clients are always informed about the latest AI enhancements and security measures. So no non-system activities.
Third, banks should maintain a high level of transparency. It’s not just about AI. This can be done by publishing detailed reports, sharing important updates with the media and engaging investors and other clients to keep them informed. I’ll repeat myself: openness about AI operations can help build trust and reassure clients that their data is being handled with due care.
Another step towards openness is to track and address customer feedback regarding AI. Prompt responses to problems demonstrate the bank’s commitment to customer safety and satisfaction. This can greatly increase trust as users will be able to see that their concerns are being taken seriously and resolved quickly.
Finally, banks should consider regularly publishing content that educates clients about how AI works and the benefits it brings. Articles, videos, podcasts – anything can work. The bottom line is that this content should address common myths and concerns surrounding AI. And banks should be ready to explain to customers why there is nothing to fear and provide them with solid arguments and facts. Through continuous education, banks can help clients better understand technology, which can have a positive impact on their banking experience.
Transparent communication is a solid foundation of client trust
Artificial intelligence is of course a promising technology that brings many benefits. However, I believe that without robust communication strategies in place, customers cannot be confident about the safety and usefulness of AI. This means that banks and fintechs should be transparent about their use of AI and data protection measures, as well as proactively engage with clients to resolve any lingering issues.
If banks can implement any of the strategies we’ve described in this article (or better yet, all of them), it will allow them to better explain the role of AI in their operations and build trust and acceptance among users. And most importantly – build the trust of the client.
