Digitalization has paved the way – now artificial intelligence (AI) is changing the rules of the game. Those who don’t consistently lead the way in the new AI era will be left behind. The opportunities? Enormous. The risks? Calculable if done right. Five strategic application areas demonstrate how AI not only makes processes more efficient, but also business models more resilient, products more intelligent, and customer relationships more empathetic. Welcome to the era of the AI-driven bank.
1. Rethinking Customer Interactions AI enables financial service providers to personalize customer experiences like never before.
Whether through intelligent chatbots, next-best-action recommendations, or contextual advice, communication becomes more individualized, efficient, and human. AI enables a better understanding of needs without being intrusive. One innovative application area, for example, is AI-based “stress tests” for individual financial decisions. Similar to how banks undergo regulatory stress tests, AI models simulate possible developments for personal financial decisions, such as when purchasing real estate or making large investments. This allows for a better assessment of potential consequences under various economic scenarios. A particular focus is on a new generation of customers, the so-called “wealth in waiting.” These digitally savvy, wealthy young customers expect a seamless, data-driven wealth management experience. AI helps develop customized investment strategies that flexibly address the life situations, preferences, and values of this target group – at any time and across all channels.
2. Increasing efficiency through intelligent automation A key promise of AI is the automation of repetitive tasks.
But it’s not just about efficiency. Intelligent automation allows employees to focus on complex and value-added activities such as consulting, innovation, or crisis management. Whether document processing, credit checks, or onboarding processes: AI recognizes patterns, checks data in real time, and supports decisions faster and more precisely than ever before.
3. Early Risk Detection In an industry where risks can change rapidly – whether due to volatile markets, geopolitical tensions, or cyber threats – AI offers a decisive advantage: proactive early risk detection.
Machine learning models analyze large amounts of data, detect anomalies, and enable early risk management. An emerging application area is the use of AI in the context of open finance. Thanks to secure interfaces (APIs) and intelligent data analysis, customer data can be effectively shared between different financial service providers – with the customer’s consent. AI thus enables the development of personalized services across banks. At the same time, the regulatory environment is becoming more complex. This is where AI can help proactively monitor and comply with regulatory requirements such as FIDA or DORA.
4. Greater Resilience Through Agile Business Models With AI, banks can further develop existing business models or create entirely new services.
Whether dynamic pricing, flexible loan products, or integrated platform solutions: AI enables them to respond more quickly to market changes. In addition, scenarios can be simulated, for example, for evaluating mergers. Furthermore, AI contributes to strengthening governance – through transparent decision-making processes, automated monitoring of regulatory requirements, and data-based traceability. This builds trust among regulators and stakeholders while simultaneously reducing the manual effort required to comply with legal frameworks.
5. Implementing Sustainability Based on DataAI is also gaining relevance in terms of ESG (Environmental, Social, and Governance).
It assists in the analysis of supply chains, the evaluation of sustainable investments, and reporting to regulatory authorities. AI can create transparency and thus support a credible sustainability strategy.A New Role for LeadersIn order to harness these potentials, banks must not only invest in technology but also in cultural change and leadership. The role of the leader is shifting from decision-maker to enabler. Successful AI initiatives are based on interdisciplinary collaboration, courage to transform, and a clear vision.Conclusion: The Age of AI Has Begun – Now Leadership is NeededAI will not only change the financial industry at some point; it is already doing so today. The critical question is no longer whether, but how banks will leverage the new technology for themselves.
The crucial question is no longer whether, but how banks will make use of the new technology. Those who invest early in skills, partnerships, and strategic pilot projects can increase efficiency and customer benefit, open up new areas of growth, and confidently meet regulatory requirements. The era of the AI-driven bank has begun. (Infobox: Whitepaper download) Artificial intelligence is revolutionizing banking. Banks are increasingly investing in AI, but many are only using the technology to optimize the status quo. However, AI opens up entirely new possibilities. A new joint publication by Cognizant and Microsoft provides answers to this – practical, strategic, and with specific areas of action for banks and financial service providers.
“Dr Kathrin Kind-Trueller started her career in 1999 in the quality engineering of international communication mobile networks at Siemens. Later on, she developed complete vehicle functions for ADAS, engine management, steering, braking, cockpit infotainment, and autonomous driving at several automotive suppliers such as Bosch, ZF-TRW, and Magneti Marelli, and at automotive OEMs such as BMW in Munich, Mercedes Benz Cars in Sindelfingen, and Audi in Ingolstadt. She was a senior research scientist in AI for the Volkswagen Group in Wolfsburg. She has a doctorate in AI applied to business, from SSBM Geneva and the faculty of business from the University of Zagreb, an MBA in AI from the University of Cumbria, an MSc. in computer science and software engineering from the University of Hertfordshire, and a master of arts in leading innovation and change from York St. John. She is now a Director for for Artificial Intelligence and Advanced Analytics at Cognizant. “
Thomas Gassenbauer
Managing Director Switzerland, Cognizant
Thomas Gassenbauer is the Managing Director for Switzerland at Cognizant, where he leads all aspects of the company’s operations in Switzerland. He is also a member of Cognizant’s Central Europe leadership team and is based in Zürich.
With over 30 years of experience in advising clients across a broad range of technology and services sales, BPO/ITO program management, and service delivery, Thomas is a highly respected industry leader. Prior to joining Cognizant, Thomas served as IBM’s Global Client Director for Financial Services, where he was responsible for one of IBM’s largest global clients. Before IBM, he spent 11 years in various IT engineering and services roles at Novartis and in the healthcare industry.
Thomas holds an MA in Business and Economics from the University of Basel, Switzerland, and is an alumnus of London Business School and Swiss Finance Institute. He is known for his comprehensive leadership skills and is highly regarded for his ability to create and execute successful business strategies.
When he’s not working, Thomas enjoys pursuing his interests in science and technology, photography, skiing, biking, and cooking. He resides in Basel with his wife Brigitte.
About Cognizant
Cognizant (Nasdaq: CTSH) engineers modern businesses. We help our clients modernize technology, reimagine processes and transform experiences so they can stay ahead in our fast-changing world. Together, we’re improving everyday life. See how at www.cognizant.com or @cognizant.
