OpinionMaking Artificial Intelligence accessible to traditional institutions
Opinion
Making Artificial Intelligence accessible to traditional institutions
"Innovation is not only the key to the future, but also a necessity in the present, and financial institutions must prepare for it," writes Dvorit Shahaf, CMO of Bridgewise
In recent years, we’re hearing more and more about the adoption of new technologies among financial entities. Banks, insurance companies, and other traditional financial institutions understand the importance of digital transformation and the ability to compete in the new era. However, when it comes to innovative products, especially those based on AI, there are still quite a few barriers and challenges. In that light, how can an AI product be marketed to traditional financial platforms, and how can they be encouraged to adopt this innovation?
Why should financial institutions embrace innovation?
Before we discuss marketing, the obvious question is why financial institutions should consider adopting innovation, especially artificial intelligence, right now. The answer is simple: the world is changing rapidly. Customers expect fast, accurate and personalized services, and AI-based solutions can provide just that. In addition, increasing competition from new players such as fintech companies requires the old institutions to upgrade their tools and capabilities, in order to become more efficient. Innovative technologies can also help with risk management, fraud detection and business process improvement. The bottom line: adopting innovation is not only a tool to improve competitiveness but also a way to increase the effectiveness and safety of the organization.
Understanding the fear of change
You know the term "Who moved my cheese?", before approaching the marketing of an innovative product, one must understand the significant fear of change that exists among traditional financial platforms. These institutions, despite their openness to changes, rely on old and tested systems, and often the uncertainty surrounding new technologies hinders their adoption.
AI, for example, may be seen as something that seeks to challenge traditional work practices and change the way business decisions are made. Presenting the technology as a complementary and non-threatening solution may facilitate its acceptance. This is where the need for information and education comes into play. The intention is not only to present the benefits of the product, but to actually explain in depth how the product works, why it is safe, and how it can be integrated with existing systems.
Creating trust and reducing risks
In financial institutions, trust is a key to success. Companies wishing to market technological or AI-based products must create trust with their target audience. This includes not only technical explanations, but also the presentation of testimonials, case studies, and data that illustrate how the product has worked successfully elsewhere.
Tools for marketing AI-based technology for financial institutions
To successfully market innovative technology to the financial sector, one must approach it with wisdom and care. It is important to understand the audience, speak their language and offer solutions that bridge the main concerns and challenges. Here are some principles that can help:
- Clear and focused communication of the value
The added value that the product brings to financial entities should be emphasized, for example, in the technology's ability to improve existing processes, reduce costs or increase accuracy and safety in daily activities. Concrete examples of process improvement can include the possibility of detecting fraud more quickly or the improvement of the accuracy of risk assessments.
- Making the technology accessible and reducing complexity
One of the ways to reduce concerns is by presenting the technology in a simple and understandable way. You must demonstrate how the system integrates into existing processes and does not require a radical change in the way of operation. Detailed tutorials and strong technical support can help with implementation and create a positive user experience from the very first step.
- Addressing various decision makers in the organization
It’s important to remember that the decision to adopt new technology in financial organizations is often made by a large number of parties - from technology managers (CTOs) to regulatory managers and other senior officials. Therefore, the marketing strategy must suit each target audience separately and explain how the technology will benefit each of them.
Compliance with regulations and standards
It is important to recognize that financial organizations operate in a strict regulatory environment. Every new product must comply with local and international standards and regulations. One of the common mistakes is to develop a product without taking into account the specific regulations for the industry. Technology companies that develop products for the financial market must devote resources to understanding the regulations and adapting the product accordingly.
Managing change
Innovation requires organizational change, and such a change is not simple - it requires broad support, not only at the technological level but also at the senior management level. For this purpose, a change management plan must be prepared that includes information, training and open communication with employees at all levels. When employees understand the benefits of the new product and its positive effects on their work, resistance is reduced and the chance of success increases.
Marketing AI products to traditional financial institutions is not an easy task, but it is certainly possible. With a deep understanding of the market, building trust and compliance with regulations, technology companies can open doors and create long-term partnerships with financial organizations. Innovation is not only the key to the future, but also a necessity in the present, and financial institutions must prepare for it.
Dvorit Shahaf is the CMO of Bridgewise, leading financial research intelligence platform.
