Churn (or attrition) rate is a key indicator of growth across all industries and businesses, especially subscription-based firms — used to estimate future revenues by examining retention and at-risk clients. Acquiring new clients when a company has a high churn rate of existing customers nets low (or no) growth. Companies have made concerted efforts in the last 5 years to hire staff focused on managing this metric and increasing revenues with existing clients.
AI is capable of reviewing a list of multiple data points of churn (e.g. minimal account activity, increased support tickets, lack of response) and providing insights of customers who may cancel a contract before renewal. Customer success managers can then put together a customized game plan on saving the relationship and improving the company’s retention client-by-client.
What’s next for ai in fintech
As artificial intelligence becomes embedded in our daily lives (both at home and work), anticipate custom solutions by industry and company to become a major trend. Some of this has taken place in the insurance industry in standardizing tasks, such as selling insurance plans, receiving payment, processing a claim, and providing a response. In financial services, a user can initiate a review of their monthly bills, set dates to make payments, and connect with a specific provider about a recent charge — all through AI.
The ultimate force behind these changes is enhancing the current user experience in banking. Making it easier, faster, and engaging for an individual or business. The long-term goal is applying artificial intelligence in FinTech to improve lives financially towards better credit, savings, and overall wealth in the next decade. From websites in the 90s, to mobile apps in the 00s, now AI bots — how we interact with the world of finance continues to change rapidly across the world. //
Go to Publisher: Articles – FinTechtris
Author: William Morales, Founder