How AI is Helping Reach the Underbanked and the Uninsured

Globally, one of the most unfortunate ironies is the fact that insurance and banking are two services that not all are privy to, despite continued upticks in digital connectivity. To illustrate, Statistics Canada reveals that 94% of Canadians have a stable internet connection, with two-thirds even experiencing upwards of 50 Mbps in download speeds. On the flip side, over 3% of Canadians are underbanked and almost 62% have insurance solely dependent on their employer.

Why are so many underbanked and uninsured in one of the most progressive countries in the world? A Policy Advisor study reveals that the majority of Canadians hold off on applying for these services because they think they can’t get them online. Considering this data, more providers are using technology to bridge the gap between financial stability and those who previously had no access to it. One such tool that more stakeholders are looking into is artificial intelligence (AI).

AI can maximize reach and relevance

Because the majority of people do their research online, marketers have long invested in search engine optimization (SEO) campaigns. Digital marketing specialists Ayima explain that if SEO campaigns are effective they can create real and measurable results that show increased brand awareness, higher engagement, and conversions. In order to truly optimize your reach and relevance, though, your SEO campaigns should be enhanced with AI. Essentially, AI can help you design powerful SEO strategies, identify content gaps, and extrapolate timely topics and keywords. By using this AI-provided information, insurance and banking SEO strategies can become more nuanced and, thus, reach its intended audiences.

AI can help overcome bias

For many, especially those from sub-populations like migrants, there is always a (valid) worry when it comes to discrimination. For many years, AI was not exempt from these prejudices, due to its programs still being reliant on inherently biased datasets. However, this concern is one of many that Zelros has been dedicated to eradicating. Using the Zelros version 0.3, AI becomes more responsible as it consistently self-checks its accuracy over sub-populations. By doing so, auditors and regulators can actively detect unfair behaviors that may be inhibiting potential banking and insurance clients. Thus, AI systems can be corrected to be more diverse and inclusive of their potential customers.

AI can boost responsiveness

The promptness and clarity of a service provider is another consideration that holds back many would-be consumers. Thankfully, one of AI’s most well-known features is the handy chatbot. According to ZDNet, while consumers do not want chatbots to totally replace human agents, 54% have said that they’d prefer a chatbot if it meant faster transactions. Over the course of 2020, 68% of Canadian respondents said that they noticed an increase in chatbots, and 24% of these said they noted better customer service. Should insurance and banking establishments be able to marry AI chatbots to complement their human agents, there will undoubtedly be more interested consumers.

AI can improve usability

Now more than ever, consumers are looking for efficiency and convenience. While many online transactions are able to provide this, it is not always the case for banking and insurance as they usually require redundancies and waiting time. Granted, these steps are there for security. Although they still add an unappealing layer of complexity. But with AI, pain points like logins, verification, and processing can be automated and streamlined. This directly fulfils a sentiment that 52% of Canadians shared when they said that they’d be more likely to sign up should online fulfillment be an option. Plus, following the Accessible Canada Act which mandates all digital technologies and content to be diversely user-friendly in respect of the 6.2 million Canadians living with disabilities, having an AI can provide your clients with language translations, automatic image recognition, and captioning.

Adopting AI will not completely solve the problem of underserved citizens, but it does take us a big step closer to creating a fairer, more attainable, and more diverse insurance and banking industry.

For more on AI, the latest in ethical advancements, and real-world applications, visit us at Zelros.

written by Chelsea Perkins for zelros.com