This comparison between human and artificial intelligence applies AI in the broad sense, where various technologies can replace people. As the subtitle suggests, I theorize that short-term benefits will become long-term detriments, particularly in retail banking where trust is a must.
First impressions
The significance of first impressions is common knowledge; formed within seconds, impressions can be tough to change. For this reason, financial institutions, like most retailers, invest considerably in their teller lines, call centers, mobile apps, online banking platforms, etc., or at least they should.
Paradoxically, front line positions historically have been entry-level and increasingly have been replaced by branch automation, or self-service banking, and online banking. Automation provides a solution to a unit of the business typically replete with high turnover. Heck, many FIs have gone completely Jetsons, closing some or all brick-and-mortar branches. Granted that market research and economic data support decisions to reduce or eliminate teller lines in favor of self-service kiosks and apps, an added benefit is the demonstration of an institution’s commitment to technological progress, which is especially appealing to the coveted younger demographics.
How much of a role, however, should intuition play in such decisions?
Double down on human investment
Without commissioning a formal study, can we conclude based on our experiences in recent years, especially between 2020 and roughly 2023, that there are intrinsic benefits to in-person interactions? Those touchpoints have ripple effects—good and bad (let’s be honest)—that are immeasurable. Of course, the goal in all of retail is to create positive interactions for optimal outcome.
Financial institutions, therefore, should invest in both human and artificial intelligence with conditions for the former. I first posited this scenario about a decade ago, but it seems more relevant now because of advances in technology: Place seasoned professionals on the front line!
Rather than entry-level, position the front line as senior or mid-senior level. Require experience, expert communication skills, and sales acumen. Such roles would attract mature applicants and reduce turnover.
While automated branches are also manned by managers, perhaps the model can be taken up a notch. Visualize a model where branches function like satellite headquarter locations, bustling with staff who could bring both the human and professional element to banking, while also making self-service options available.
Likewise, FIs without branch automation could benefit from such a model. Very small FIs, where employees wear multiple hats, already do this and it is exactly how they grow. At a time when all eyes, and budgets, are focused on artificial intelligence, consider the very possibility that in the long run, human interaction will yield the best dividends.
Affirmation from an unlikely source
Ironically, after writing this article, I was alerted to Antiqua et Nova, which is Latin for “old and new.” Issued by the Vatican in January, the lengthy document addresses the relationship between human and artificial intelligence. Regarding the role of intuition in our business decisions, there are a few excerpts worth considering:
- AI’s capacities, though seemingly limitless, are incomparable with the human ability to grasp reality.
- AI should not be seen as an artificial form of human intelligence but as a product of it.
- Despite the use of anthropomorphic language, no AI application can genuinely experience empathy.
Let’s face it, human qualities like intuition, perception, and empathy cannot be replicated or learned by a machine effectually.
