Despite the benefits, there are concerns about AI potentially generating biased or discriminatory outcomes, particularly targeting vulnerable customers with high-fee accounts. Banks like Huntington are focusing on ensuring fairness and compliance in their AI models. Companies like Personetics Technologies Inc. and Curinos are also aiding banks in enhancing deposit strategies through AI, with some banks achieving significant increases in deposits. However, experts caution against the potential for AI to exacerbate predatory marketing practices, emphasizing the need for careful oversight and ethical considerations in AI deployment.
Key takeaways:
- Regional US banks like Fifth Third Bancorp, Huntington Bancshares Inc., and Valley National Bancorp are using AI tools to personalize deposit offerings and attract customers.
- AI models help banks understand consumer behavior and predict which customers might be interested in specific products, enhancing customer engagement and retention.
- There are concerns about AI potentially generating biased or discriminatory outputs, which could lead to predatory marketing practices targeting vulnerable customers.
- Companies like Personetics Technologies Inc. and Curinos provide AI solutions to help banks optimize deposit strategies and compete for customer relationships.