In Q2-2024, APAC banks have shown tremendous strides in leveraging digital technologies to improve customer experiences. Among these advancements, artificial intelligence (AI) stands out as the biggest technological opportunity, revolutionising banking services from personalisation to automated processes. Banks across the region are utilizing AI-driven solutions to transform their offerings, streamlining operations and enhancing their digital ecosystems. Here are the top five digital innovations from Q2:

Commonwealth Bank: Expanding non-core activities

Expanding its CommBank app into non-core banking functions, Commonwealth Bank focused on rewarding loyal customers and creating secure systems. New key features include:

Smart Health for Pharmacies:

A strategic enhancement in customer interactions – this initiative offers comprehensive payment and professional consulting options for online and in-store needs.

• Payment processes: Collaborating with Scrypt Ventures, the bank provides secure payment terminals for remote orders of medications and over-the-counter goods. Sends payment verifications to patients through the CommBank app.  

• Manage claims: Access Medicare or private health claims and allows customers to rebate, pay, and collect receipts.

Travel booking:  

In collaboration with Hopper, this initiative aims to link customers’ travel-based saving goals to a marketplace within the CommBank app. The key features include:  

• Reward Point Payment: Leverage CommBank award points to offset travel expenses, enhancing the value proposition of the bank’s loyalty program.

• Price Prediction: Utilise data analytics on day-to-day flight prices to provide customer recommendations on the optimal time to book flights.  

• Best Price Guarantee: Offers travel credit compensation if cheaper flights are found within 24 hours of booking.

• Auto Price Drop: Offers travel credit if the price drops from the booking price within 10 days for customers using CommBank’s travel recommendation.

• Price Watch: Delivers real-time notifications to monitor flight prices 24/7, enabling customers to book the best deals.  

Commonwealth Bank’s travel and healthcare features offer insights into the bank’s growing service portfolio. The services leverage data-driven insights and secure backend processes to deliver convenient and cost-effective solutions personalised to its customers.

Bank Mandiri: Hyper-personalised cross-selling

Bank Mandiri has incorporated personalised advertisements to increase user engagement, deliver targeted cross-marketing content and provide customers with:  

• Personalised billers: Tailored bill payment options that cater to individual customer needs.

• Ads on checkouts: Targeted advertisements are displayed during the checkout process.

• Reels campaigns: Engaging video campaigns designed to capture customer interest.

Using AI, the bank’s strategic placements of hyper-personalised campaigns have increased customers’ take-up rates by 13% on recommended billers. The biller’s success depicts a positive conversion rate in cross-selling to customers through personalised advertisements.  

Bank Negara: Wondr SuperApp

The app features personalised options and offers experiences derived from three financial dimensions:

• Insight: Allows customers to track and manage their finances by analysing previous financial activities through daily reviews.

• Transaction: Provides real-time features for instantaneous transactions, aiding in everyday financial activities such as bill payment, domestic transfers, and payment scheduling.

• Growth: Offers a range of solutions from investments to savings accounts to help customers grow their finances.

OCBC: AI Oscar in wealth services

AI Oscar is an AI-based stock-picking and predicting tool. The innovation aims to provide an accessible and beginner-friendly trading platform. Key features of AI Oscar include:

• Market prediction: Utilises machine learning to study previous market trends and indicators to predict market patterns and price movements.

• Personalised stocks: Provides customers with approximately 15 hyper-personalised stock recommendations every week, tailored to their risk attitude, demographic, and previous trading activity.

These features make trading easier and safer for new investors, increasing trading activity among young investors by 50% during AI Oscar’s launch.

Siam Commercial Bank: Enhancing services through AI

Siam Commercial Bank introduced three new AI-based solutions accessible via the bank’s app or online platform. These innovations aim to improve customer-oriented services by leveraging hyper-personalisation. The key features include:

• AI loan approval: Enables automated loan approvals online for retail, housing, hire purchasing, and small business loans. Provides  personalised interest rates based on risk levels associated with their financial profiles during application.

• AI advisory chatbot: Gives interactive access to information on investment channels and simplifies wealth management. Offers real-time assistance and personalised advice tailored to individual needs for informed financial decisions.

• AI My Alert services: Offers hyper-personalised investment notifications through AI. The service monitors customer portfolios to deliver specified notifications on investments, considering market movements, existing portfolios, data, and investment opportunities.  

Future of AI in banking

The innovations in Q2-2024 aim to create banking systems where customers receive personalised and automated online support services. The shift towards AI exemplifies this, enhancing current processes and opening new business opportunities. Ultimately, this demonstrates a forward-thinking approach in the banking sector.

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