June 2023: There are many issues with these systems and the speed at which they are being adopted, without care for the negative consequences. However, there’s definite value for your credit union. So long as you approach it with reason.
February 2023: With the release of OpenAI’s ChatGPT-3.5, this has all been both turned on its head, and also exactly the same. ChatGPT is good. Coherent and, frankly, perfect interview good. But only for appropriate uses. It does have a habit of “hallucinating”.
I’ve spent many hours working with it as well, and the results are stunning. It has helped me plan out a year’s worth of blog articles, then draft each of them (still up to me to format and post!). I tossed around some marketing ideas and got its hot takes, which were all valuable.
Some of the more fun and wow-worthy interactions will be seen over time. Hey, can’t spill all the beans at once!
Suffice it to say, this is the chatbot that will make them relevant, meaningful, and insanely useful. I’m not smart enough to explain how big a deal this is, so I asked ChatGPT to help me out. Here’s what it had to say:
ChatGPT is the future of AI customer service for credit unions. With its advanced language model, it can hold human-like conversations on any topic. Think of it as a smarter, more efficient version of Jarvis from Iron Man. Empower your credit union with the power of AI and give your members an unparalleled banking experience.ChatGPT-3
Let this definitely-not-AI-but-people-will-call-it-that-anyway help you internally. Use a restricted form to manage questions. Then give members a chance to connect to a person, through whatever medium they prefer.
All that said, it doesn’t mean you should dedicate all communications, article writing, email drafting, and website updates to ChatGPT (or the bazillion related systems emerging).
Focus on the human touch. Embrace your mission. And remember: People. Helping. People. (And “AI” can help!)
“Ask Our Friendly AI!” Your credit union’s website is excitedly promoting their new chatbot, there to answer questions 24/7. “Cool, so how can it help me save money or time?”
Whether they admit it or not, that’s what your members will be thinking.
In some cases, such tech is fielding member requests without burdening traditional staff time. And their resolution rates can be similar to human representatives.
What are you waiting for? Get Siri, Alexa, Cortana, and friends to every CU! (HAL is not welcome, sorry)
Interacting in a Financial World
If only it were that simple. “AI” support agents are uniquely programmed to understand financial world terminology. Plus, computers don’t excel at interacting like a person, since we learn and process the world in a different way.
As of the end of 2022, it looks like that day is finally here. With ChatGPT, you can have full conversations on topics far and wide. And it can even “hallucinate” other environments, opening the door to incredible education opportunities.
What may be even further off is having all systems talk to each other in the background. (ChatGPT is deliberately not connected to the internet, but the possibility is certainly there for closed-network interactions.)
Here are some ideas I had in 2017, when the “state-of-the-art” for AI was far less impressive. Amazingly, my insights on an increasing rate of change…of change are coming to fruition. So, back to 2017….
Imagine being able to ask Siri (remember that post?) to transfer money from one account to another and explain the tax implications of your specific IRA contributions.
Then find out the score for your favorite team’s last game.
But we’re not at that point…yet. And look who spoke too soon…we’re actually getting awfully close.
AI for Serving Your Members
Patience, my young Padawan. A fancy chatbot might seem like the natural first step, but let’s look at it from a member benefit perspective. If they have a question, they don’t care who/what responds.
Your members want a quick and accurate answer. If your team is currently able to keep members served quickly and effectively (through any medium they contact), then this may not be a fit for you at this time.
Unless you have unlimited resources, in which case, yes, do all of this at once. Just make sure you have top-notch project management to ensure the focus is always on the unified credit union goals.
For the rest of us, the AI which makes the most sense, if less “sexy”, is the Big Data side of AI: Machine learning. Here, you have solutions that can do things quickly which would take enormous staff effort.
Machine Learning Innovations
For example, you can analyze a member’s credit (beyond the report) and offer a rapid loan decision with a high rate of accuracy.
You can implement systems to monitor patterns in spending to identify fraud the moment it occurs, saving the institution money and the member frustration.
Machine learning is also enabling security of the body, biometrics. That’s the fingerprint sensor on your phone. Or FaceID on your newer iPhone. It’s also the Hello feature on Windows 10 computers.
Retina scanners combined with other biometrics, a security card, and “something you know” composes the “top level” of security at large financial institutions (and government entities).
Speed. Savings. Security.
Three great reasons to implement aspects of AI in your credit union. A recent post about this topic ended with a wonderful quote:
“When a bank…effectively uses AI, they run more efficiently and are able to connect more effectively with a segment of the population that will never be replaced by machines: their customers.” – Mohit Joshi, Innovations in FinTech
Ok, ok. I’ve given you way too much to consider. AI, Big Data, machine learning, algorithmic analysis…yeah, I get it. Overwhelming when you just want to know, “can this stuff help my credit union?”
So, I had a realization right after writing this post. Remember that series I did about tech in the financial industry? As part of it, I mentioned that financial institutions are at risk of becoming “dumb banks” in the same way that ISPs are “dumb pipes”.
What I mean is that you are at risk for simply becoming the corridor for other companies’ information. You hold the money, but your members use other services to move, spend, invest, even check on their funds.
The same is the case here with AI.
There will always be a place for information as you manage it now: Raw account balances aren’t going anywhere. But that’s “dumb data”. The future is in “smart data”.
Where your credit union and members can find patterns in spending, opportunities in lending, and personalized recommendations for minimizing debt (or maximizing wealth).
How will you become the “smart data” of the future?