Reimagining banking with AI

Artificial Intelligence (AI) will revolutionise the financial services industry over the coming decade. And the transformation will be broad – impacting everything from customer experience to administrative operations. 

Of course, the industry is no stranger to technological advancements. Over the years, we've seen the rise of online banking, mobile apps, and digital wallets, all of which have significantly altered how customers interact with their banks. 

However, AI promises to take this transformation to a whole new level. By leveraging AI here at Lloyds Banking Group we can create more personalised, efficient, and secure banking experiences for our all our customers. 

Below, I’ll explore the key areas where AI will make a significant impact across the Group and across the financial services more generally.

How might AI transform the customer experience?

The most significant impact of AI in financial services will be on customer experience. Specifically, AI agents will understand customer needs, preferences, and contexts, providing personalised guidance and performing tasks such as filling out forms or even applying for mortgages. 

This shift will make customer journeys non-linear, highly personalised, and less predictable. Equipped with comprehensive knowledge of the customer's history and preferences, the agent can provide tailored advice and complete tasks, autonomously, on their behalf. The good news is that this level of personalisation and efficiency will redefine the banking experience, making it faster, more intuitive and user-friendly.

Emerging AI technologies

While customer experience is a primary focus, other emerging AI technologies will also have a significant impact on those working in financial services too. AI will reduce manual intervention and increase efficiency. 

Consider the traditional process of handling customer complaints. It often involves multiple steps and significant manual effort. With AI, this process can be streamlined, allowing for quicker resolution and improved customer satisfaction.

Ethical considerations

Implementing AI in financial services of course comes with ethical and risk considerations. This is because AI models may not always behave as expected, potentially providing misinformation or biased evaluations. Ethical issues may arise from the application of AI, such as scoring individuals based on race or ethnicity. For instance, an AI model used for credit scoring might inadvertently favour certain demographics over others, leading to unfair outcomes. 

To prevent such scenarios, it is crucial to have robust ethical guidelines and risk mitigation strategies in place. This includes regular audits of AI models, transparency in how decisions are made, and ensuring that AI applications align with broader societal values.

This is why Lloyds Banking Group has established a Data and Ethics Risk Committee, and an AI Assurance Framework to mitigate associated risks and ensure strong ethics are at the heart of everything we do to address these concerns.

How might Agentic AI impact financial services?

Agentic AI refers to systems capable of making autonomous decisions and taking actions while continuously learning from interactions to achieve specific goals. These systems, often composed of multiple agents, can perform various tasks typically handled by humans. 

For example, one agent might provide financial guidance, another might handle mortgage applications, and a third could manage customer processes. When these agents work together, they can perform complex tasks much like a human personal assistant, connecting different systems and executing various functions efficiently. This capability makes agentic AI particularly impactful in industries like financial services, where it can streamline operations and enhance service delivery.