Oracle Financial Services reposted this
The way financial services firms manage profitability is evolving rapidly, fueled by AI and data-driven insights that enhance decision-making and growth potential. By moving 1/3 of the zero profitable customers up one segment could generate an increased client profit contribution of $75m per year! During this learning session On the Revenue Growth Path: How Al Is Reshaping FS Institutions’ Profitability at #OCW this week, Jason Wynne from Oracle shared four opportunities for AI in maximizing profitability: 1. Clustering and Classification: Use labeled data to train models and discover new customer segments. 2. Anomaly Detection: Identify seasonal patterns and detect irregularities. 3. Simulation and Forecasting: Employ traditional models and synthetic databases for market predictions. 4. Generative AI Agents: Experiment with Gen AI to simulate realistic market conditions. Then our prestigious customer speakers Mark Downey from Resolution Life and Jyotsna S. from Voya Financial shared their best practices on leveraging AI to increase revenue potentials. Here are the highlights: - Understanding your target audience and making impactful decisions is crucial. But don’t forget the intangible elements like customer experience, which also drive profitability. - AI helps analyze profitability and customer lifetime value (CLV). Data quality, ownership, and a collaborative culture are essential for maximizing these insights. Consistent data curation and engaging external factors can help retain customers. - Breaking down data silos and communicating data's cross-functional value is critical. - AI applications in customer segmentation, risk management, and proactive engagement are key to adapting to economic changes. - Engage with leadership to drive AI adoption and explore innovative use cases. - Establish data ownership and ensure data consistency for clean, actionable insights. Increasing profitability in financial services isn’t just about leveraging technology—it’s about fostering a collaborative culture first that supports AI experimentation and integration to make smarter, data-driven decisions. The future is bright for those ready to embrace AI’s potentials. #riskandfinance #profitablity #ai #financialservices #banking #CLV #customerexperience #revenuegrowth Sabrina Scott Mark Atherton Yogi Singh
