The adoption of advanced artificial intelligence and machine learning services by banks could affect how they view client middle market companies, specifically when focusing on potential profitability. This a key conclusion drawn from a study conducted by Greenwich Associates, the data and analytics firm serving the financial services industry, as part of their 2018 Greenwich Excellence and Best Brand Awards in Middle Market Banking.
The study observed that major banks are now relying on leading technology, not just mobile apps or client portals, to do business and ensure quality service. IT systems that are powered by AI and ML are analyzing corporate businesses to discover their best customers in terms of the services that offer the banks the greatest profit. Also, banks who provide the best advice based on AI may gain a disproportionate share of the market over time.
For middle market companies, this could mean that traditional client segmentation based on region, industry, and size is not as relevant or useful.
“For some companies, including newer businesses and those with great growth potential, these changes will be for the better,” said Dana Schwaeber, Greenwich Associates Vice President in a press statement. “Meanwhile, companies in more mature industries and markets might see considerably less of their old bank relationship managers, and find themselves encouraged to do more of their banking through digital platforms.”
