Transparency equals trust
If a customer is shopping for a car, and her bank suddenly offers her an auto loan, that could represent a timely, value-added service. On the other hand, it could raise questions in the mind of the customer about why the bank knows that she is shopping for a car or how the bank knows so much about her.
Merely pushing products can alarm customers and erode trust. This is important, as bank brands and trust have been challenged in recent years. Rather than proactively using data to push products, banks must be transparent with customers about the data that they have, the insight it provides for them, and how they can use that insight to help customers in an ethical way.
Simultaneously, banks are evolving from manufacturing and marketing products to facilitating experiences. For example, banks are moving from simply selling a commodity-based mortgage to facilitating a home buying experience. The later entails helping a customer understand what he can afford, the types of products that would be the most beneficial to him, the implications on his cash flow and other bills or debts, etc. Banks aim to help customers not only with individual financial products, but with the entire financial context that surrounds them.
In doing so, banks are starting to use artificial intelligence to understand who their clients really are, what their needs are, and what products might help them to achieve their objectives so that they can make great choices for their own financial betterment. As part of this evolution, banks must also try to take the next step to explain how and why they're prescribing the solutions that they're prescribing to customers.
Traceability and tracking ability are also part of transparency. Traceable and trackable AI allows us to go back to the exact location where the decision was made and determine why it was made. When a customer applies for a loan, the bank should be able to provide more than a “yay" or a “nay" and a score. Without giving away the loan-scoring model that is “secret sauce" of the bank, the bank should be able to identify broad parameters such as business tenure, gross assets, etc. that were used in the determination regarding the loan and educate the customer about how they could be approved if they were declined.
Traceability and trackability promote trust and increase adoption of AI.