In a fiercely competitive industry, banks and other financial institutions continuously strive to provide hyper-relevant and engaging customer experiences. This industry is acutely aware of the need to leverage powerful technologies to gain or even just to maintain a competitive advantage.
Recent technologies over the years like artificial intelligence (AI), Machine Learning (ML), application program interfaces (API) and fintech have changed the landscape of banking forever. These technologies are unlocking the potential for bespoke customer experiences (CX), supporting new business models and hyper-personalization.
Like everything else, there is a catch. To put a wide assortment of these technologies to use in real-time involves processing massive volumes of data. The quantity of data that must be processed using traditional “hub-and-spoke” server design results in very lengthy delays to achieve completion of data analysis.
Enter Edge Computing
Rather than send data across long routes to be processed, edge computing involves processing the information exactly where it is stored. By virtue of digital ‘geography’, this means a much faster processing speed and a smoother experience. In a traditional design, all data would shift back to a central data center for processing. This design leads to latency in information exchange and serious customer servicing of real-time offerings.
Edge computing, on the other hand, has its strength in local data processing either on a device or a local server as opposed to constantly communicating with a distant centralized server database. Smart devices and banking applications benefit as they can process information instantaneously, eliminating lag and allowing for quicker decision-making.
An easily understood example of this is in another industry. Imagine edge computing used in autonomous cars. A massive amount of data must be processed in milliseconds for a smooth customer experience. The only this can be achieved is for the data to be processed within the vehicle rather than be sent out to a central repository and eventually return with instructions.
One of the most anticipated technology innovations in banking today is edge computing. So much so that it is rapidly becoming a core mission-critical infrastructure design. The promise is in the delivery of edge computing to integrate with other major technologies across many banking use cases, including AI, cloud-based systems, and 5G networks, to name a few.
Hyper-personalized customer engagement experiences
According to Deltec Bank, “Edge computing can be used to deploy highly personalized customer service engagement interactions. A few examples of this include virtual tellers, facial recognition and near-field technologies allowing for relevant (not generic) products to be offered to customers.” Imagine a customer walking into any branch and being offered a suitable loan for a car or home, or a saving plan for relevant life events in an instant.
Increased inclusion in financial communication
Banking benefits from edge computing with increased accessibility and inclusivity technologies such as 5G networking. For instance, video chat experiences with a banker is more immersive and clearer while accelerating home or personal loan applications faster.
Video analytics powered by AI
When combining AI with edge computing, leveraging customer experiences by capturing, analyzing and presenting critical insights can result in improved experiences for future customers. As an example, this could be a visual walkthrough of a branch showing how customers use the physical space. Additionally, it could also incorporate customer sentiment by analyzing their facial expressions, either while being serviced or waiting in the queue.
Smarter decision-making using next-generation analytics
This could be the most important of edge computing contributions; helping banks to understand how to better respond to and maintain customer engagement.
It is in the use of edge computing that next level offerings involving personalized products, targeted campaign communications and pushing relevant services or products in-branch; all leveraged by anonymized data via mobile applications, near-field communications and location services.
New technology has made incredible innovative changes in banking in recent years. Artificial intelligence and APIs help banks continuously improve customer experiences; coupled with edge computing, offers that customer engagement experience much more efficiently, and with greater personalization.
Disclaimer: The author of this text, Robin Trehan, has an undergraduate degree in Economics, Masters in international business and finance and an MBA in electronic business. Trehan is Senior VP at Deltec International www.deltecbank.com. The views, thoughts, and opinions expressed in this text are solely the views of the author, and not necessarily reflecting the views of Deltec International Group, its subsidiaries and/or employees.
About Deltec Bank
Headquartered in The Bahamas, Deltec is an independent financial services group that delivers bespoke solutions to meet clients’ unique needs. The Deltec group of companies includes Deltec Bank & Trust Limited, Deltec Fund Services Limited, and Deltec Investment Advisers Limited, Deltec Securities Ltd. and Long Cay Captive Management.