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Think further: Innovation potential of artificial intelligence for banks

The turning point has long since been reached. There is hardly any way around artificial intelligence (AI). The pressure on companies and institutions to develop and utilise potential applications for their industry as quickly as possible, which was initially only slightly noticeable, is increasing constantly. Opportunities must be seized and risks avoided. Banks are also recognising the need for change and are taking the first steps.

Artificial intelligence: part of the future of banking

According to a study conducted by Confinpro AG in collaboration with VÖB-Service GmbH, 65 per cent of the more than 380 experts surveyed from German financial service providers are convinced that AI and banks are inextricably linked. However, if organisations fail to use the latest technologies such as machine learning, 87 per cent believe they will be at an enormous competitive disadvantage.

For many banks, AI is therefore no longer just a distant dream of the future. According to the industry report, two thirds of banks and insurance companies in Germany are already using AI solutions. These range from chatbots in banking applications, which bank customers can use to get in touch, to process automation. However, the participants in the study do not believe that the next stage of evolution can be achieved alone. 72 per cent see technology partners as support for the further integration of AI applications. Especially when it comes to overcoming obstacles together.

Overcoming obstacles

Banks are facing more and more challenges, especially at the beginning. Shying away from this and postponing the topic of implementation to the future is not a sensible alternative in view of the general AI upgrade. It is much more helpful to recognise the initial difficulties and actively look for solutions. The following points are typical stumbling blocks:

– Missing data or poor data quality
– Little expertise in relation to artificial intelligence
– Uncertainties regarding regulatory requirements (including data protection)
– Outdated IT infrastructure
– Non-existent target definition and unclear use cases
– Insufficient involvement of all specialist departments/employees

If banks are aware of their individual challenges and look for solutions, ideally before the project begins, they can keep an eye on the key success factors for AI projects. With sufficient data, data quality, IT expertise and knowledge of their own goals and applicable regulations, project success is within reach.

Opportunities recognised: AI models for the banking sector

But in which direction can banks think? In view of the many possible applications of AI, it is crucial to assess which processes can be efficiently automated, where meaningful human-machine interaction is conceivable and where employees must remain an indispensable point of contact. Three scenarios show the benefits.

Improve customer service: The idea behind this is well known. If you know your customers, you can give them customised recommendations. This is where AI algorithms come in, generating suggestions for bank advisors on funds, shares or bonds for their customers. AI can also be used to automate the risk assessment of portfolios in order to ensure security and maximise customer satisfaction.

Finanzkriminalität reduzieren: Verdächtige Transaktionen lassen sich mithilfe von KI-Modellen aufdecken. Dafür analysieren Anwendungen beispielsweise Transaktionen hinsichtlich verschiedener Kriterien wie Betrag, Währung, Zielland und Transaktionstyp. Fallen Abweichungen auf, meldet die KI diese an einen Kundenberater, der die Informationen noch einmal manuell prüfen und bei naheliegendem Verdacht an die Finanzkriminalitätsabteilung weiterleiten kann. Somit hilft KI im Kampf gegen Geldwäsche und Co.

Reduce financial crime: Suspicious transactions can be detected with the help of AI models. For example, applications analyse transactions according to various criteria such as amount, currency, destination country and transaction type. If deviations are detected, the AI reports them to a customer advisor, who can manually check the information again and forward it to the financial crime department if there is any suspicion. AI thus helps in the fight against money laundering and the like.

Future-proof – with AI

Whether in customer service, combating financial crime, fulfilling sustainability obligations or simply optimising internal processes – AI is already being used in a wide range of areas in the banking business. As the future holds even more points of contact and therefore simplifications and opportunities, it is now time for all managers to stay alert to AI and seize potential early on.

Are you already thinking about the potential of AI in your bank? Then we have even more starting points for you!

Efficient processes for the kitchen. Fast service for guests.

What do guests appreciate when they visit a restaurant? Good food and drinks, a pleasant atmosphere and spending time with friends and family. These points certainly top the list. However, one disruptive factor can reduce satisfaction: long waiting times. The path to efficient processes with digital support is a quick one.

“We’re off then!”

Whether a visit was a success or not depends on various factors. One of these is good service that takes orders quickly, serves them and finally collects the bill. According to the results of the orderbird hospitality study, fast service is the decisive factor for a successful restaurant visit for over 90 per cent of people.

However, staff should not fulfil this wish at all costs. If guests feel rushed and hurried in customer contact, nothing is usually gained in the satisfaction ranking. Service must therefore not suffer as a result of speed, but at the same time it must not be neglected. Lean and efficient processes are therefore recommended in order to fulfil guests and their requirements – from the dining room to the kitchen or bar.

Digital processes and receipts

A look at the exchange between service and kitchen and bar staff reveals initial potential for optimisation. The current state of affairs in many catering establishments is the paper receipt. Orders are taken, printed out and processed in the kitchen. Then it comes to its logical end: the receipt ends up in the waste paper basket. In addition to the time it takes to print it out, hang it up in the kitchen and count up the same dishes, this process also needs to be replaced for sustainable reasons. Kitchen monitors offer numerous advantages here. Digital, automated processes take the place of previous routes (from the guest via the till to the kitchen). Paper receipts are a thing of the past and make way for more sustainable alternatives – at the same time, catering businesses save on paper costs. And orders can be clearly sorted and processed. For this purpose, a screen is installed in the kitchens that displays the entire ordering process.

Kitchen monitor in practice

Various solutions rely on additional features to increase efficiency.Our kitchen monitor from ALVARA | Digital Solutions, which we developed with our subsidiary – it relations GmbH – optimises processes and workflows in the kitchen and bar area by solving current pain points. Changes can be quickly recognised with visual highlighting.If new receipts appear or existing orders have been revised, they appear clearly visible on the kitchen monitor.To reinforce this, an acoustic signal also sounds to immediately register new orders or cancellations. The kitchen monitor creates transparency with regard to customer requests.This is because additional information, such as special requirements for food or drinks, can be easily added. The individually configurable workflows for staff promise maximum efficiency.In addition to processing the entire receipt, individual process steps can be separated out.By displaying the various items, the steps can be processed one after the other in a way that is recognisable to everyone and can be visually ticked off directly on the monitor. The solution also offers a wide range of possible applications. On the one hand, it is possible to connect several cash registers to one kitchen monitor. On the other hand, kitchen monitors can be connected so that they can be used in different areas at one location, such as in the kitchen and at the bar. A receipt can then be displayed on all devices and distributed depending on the task area (drinks, food). However, the benefits of the kitchen monitor do not end with the optimised processes. It can also be used to look at the big picture.For example, it can be used for statistical daily analyses that provide insights into processing and waiting times or enable the use of KPIs, thereby revealing further potential.

Switchover made easy

It is undisputed that digital processes have advantages for work in the catering industry – whether service, kitchen or bar.Nevertheless, widespread adoption is still a long way off. One reason for this could be the fear that the changeover will cost a lot of time and resources.A concern that can be quickly dispelled.In fact, once the hardware and software have been procured and the staff have been briefly trained, operators can benefit directly from the advantages of Kitchen Monitor in terms of increased efficiency, reduced costs and ultimately satisfied guests.

Does the Kitchen Monitor sound tempting to you? Then let us modernise your business! Connection of several cash registers to one kitchen monitor.

Increasing sales with digital signage

Humans are less attentive than goldfish. This is a study result that does not really do justice to either vertebrates or us, and which is ultimately also in doubt (The tale of 8 seconds). But there is a grain of truth in the thesis. After all, the daily flood of information challenges us. We quickly decide whether we want to pause and give the content more time. It’s the same at the point of sale. A challenge for retailers that they can no longer meet successfully with posters and flyers alone.

Attracting attention – and keeping it

Retailers should be guided by a rule of thumb: Moving images are more captivating. This means that they increase attention and are remembered for longer. Digital signage has been a prime example of this at the point of sale for several years now. Digital signage in indoor or outdoor areas stands for modern and flexible communication that can include videos, but above all impresses with changing content that creates variety.

Retailers can thus provide their products with the space they need on a daily basis. At the same time, they gain more flexibility as changes and additions are easily possible. However, these systems can do much more: in addition to displaying content, they can also be used as touch displays, for example. This promotes interactivity with customers, encourages greater engagement with the content and leads to greater customer loyalty.

Bright sales prospects

Other digital signage benefits such as uniqueness, cost efficiency, ease of use or a targeted customer approach are generally well known to retailers today. Last year, a study focussing on 250 retailers in the UK also showed that the use of digital signage has a positive effect on increasing sales. Over 90 per cent of retailers were able to achieve this after investing in the solution.

However, there is still some catching up to do when it comes to implementation. A third of those surveyed had not yet had any contact with the solution in their own shop. A survey conducted a few years ago by the Gesellschaft für innovative Marktforschung (GIM) on behalf of the global marketing-at-retail association POPAI revealed that, in addition to the issue of “financing”, a lack of a communication concept was perceived as the main barrier.

Concept needed!

A legitimate concern: without suitable, creatively prepared and captivating content, the full potential of digital signage cannot be realised. Setting goals is therefore the top priority. After that, retailers only need to find suitable hardware and software and can use the systems to convince their customers of products or motivate them to interact more with offers.

When selecting a solution, managers should keep a close eye on the aspect of “usability”. Working with digital signage systems should be intuitive for employees. Our Cloud Coffeeboard, for example, can be conveniently controlled from the central office. This also makes it possible to react to current circumstances.

Image advertising, discount campaigns, price boards – with digital signage, offers can be presented in a modern and effective way. We will be happy to advise you – without obligation, of course!

Healthy ecosystem: Ensure a free choice and cash supply!

Whether shopping, eating out or going to the cinema, consumers today often have the choice between paying by cash or card. At the same time, the debate is gaining momentum as to whether cash is still appropriate in our society or whether digital payment methods could replace it completely. This raises questions that need to be discussed: How can the supply of cash be ensured and what impact would a cashless world have on consumer protection and therefore our society?

Cash as a guarantee for consumer protection

Cash is still one of the most popular payment methods (Deutsche Bundesbank, Zahlungsverhalten in Deutschland 2021) for several reasons. One of these can certainly be attributed to its importance for consumer protection. This is because coins and notes protect privacy and offer an alternative for those who are sceptical about card payments or payments via smartphone app. Some people are concerned that the traceability of digital payment methods will turn them into ‘transparent customers’. Older people in particular, who are less tech-savvy, could experience marginalisation in a cashless society.

Free choice in the payment process is therefore crucial. This is also shown by the GLORY PAYMENT REPORT 2023, in which a good half of the Germans surveyed rated the relevance of freedom of choice as high. Our neighbours from Austria and Switzerland attach even more importance to this.

A proposed solution

One solution for ensuring access to cash could be the introduction of a ‘universal deposit and recycling’ system, in which cash can be deposited and withdrawn at special ATMs independently of banks. Among other things, this would reduce the operating costs of ATMs, as they would need to be refilled with cash less frequently or not at all. Lower fees for consumers and a denser network of ATMs nationwide would be the desired results.

For tradespeople in rural areas in particular, this would mean a remedy for ever longer journeys to branch banks. This is because, with the increasing closure of bank branches, these can become longer for depositing income or obtaining change. (Those who are prepared to accept increased distances have not yet faced any hurdles). Currently, universal cash deposits in Germany are also challenging due to the identification requirements in the Money Laundering Act (GWG).

In the last legislative period, the then federal government identified the cash infrastructure as a central point for equal living conditions in an action plan, as BDGW and AG Geldautomaten point out in their report. This is because the provision of cash is one of the services that must be guaranteed in both rural and urban regions. For this reason, the cash infrastructure must receive explicit political support.

Conclusion

Cash is essential for consumer protection in order to safeguard privacy and offer an alternative to digital payments. The mere use of non-cash payment alternatives entails a dependency on technology. To ensure a secure cash supply, policymakers should support the use of cash and could work with the relevant cash players to promote new solutions such as the universal deposit system.

Are you in favour of freedom of choice? Then you also need secure, transparent and efficient cash management. We would be happy to show you what this could look like in practice!

Pecunia 7: New generation of cash centre software

The time has come! Over the past few months, we have been working hard to further develop our Pecunia cash centre software, which has now been tried and tested on the market for 30 years. The result: our new cloud-based software generation Pecunia 7.

Generation change – with a customer focus

But let’s start at the beginning. How did we actually come up with the idea of rethinking an established and proven solution from scratch? Well, software and its functions grow over the course of its life cycle. New features are needed and old ones remain. It was the same with Pecunia. We wanted to reduce the complexity that had grown over time – in particular to further improve user-friendliness. A new design was also on our to-do list.

But along the way, we didn’t want to lose sight of future customer needs. It’s a good thing that our colleagues have regular on-site appointments in their diaries. At these meetings, our team focuses on new requirements, needs and processes together with our customers. This results in findings that we were able to incorporate into our Pecunia 7 design and development.

Pecunia 7: What to expect

The most important new feature of Pecunia 7 is its provision as a cloud solution. Pecunia was originally launched as on-premises software for cash centres, which was installed on our customers’ system environment.

We are therefore doing justice to the increasing importance of cloud applications for companies and the cloud-first approach. After all, nine out of ten companies already use cloud solutions (Bitkom, 2023). According to the Bitkom study ‘Cloud Monitor 2022’, organisations primarily rely on the private cloud. However, a trend reversal towards hyperscaler solutions could emerge in the future. As many as 28 per cent of the companies surveyed in the study are already considering a public cloud. For us, it goes without saying that the architecture of our solutions follows the digital strategies of our customers.

So back to Pecunia 7: we offer two models for this. Our cloud solution can either be operated by the customer themselves or they can choose ALVARA as the operator. In both cases, the solution, including the database, is always located in a data centre. In the latter case, however, we as the operator can guarantee optimum support and are available more quickly in support cases.

The cloud-based solution also offers an advantage in terms of data flow. Where previously data had to be exchanged between different local applications and local cash centre locations, everything now runs via a central database. This not only makes replication a thing of the past, but also the associated potential loss of performance.

Pecunia 7 also boasts new features and benefits:

– The core application is accessed via the browser and is operating system-independent
– Availability for several currencies and in several languages, including German, English and French.
– Mobile first! An example: In future, there will be an app for employees in the lock for container handovers at the lock between cashiers and the cash centre. A PC is no longer required in the narrow interlock area.
– Pecunia 7 is multi-client capable. This reduces hosting costs.
– Pecunia 7 supports the processes of one-man logistics.
– KPI and optimisation: evaluation of key figures and automatic analysis of cash centre performance.
– Our Fakturio solution for fully automated digital invoicing can continue to be used seamlessly.

All of these advantages combined illustrate the relevance of Pecunia 7 as a cloud-based software solution for cash centres.

We will be happy to keep you informed about further innovations.

Are you already curious and does software for your cash centre sound tempting? We would be happy to go into detail with you!

Discussed: Opportunities for trade

Leave your work routine behind and join the conversation with retail representatives. Our 17th BargeldDialog Handel took place on 25.04.2024 and we once again had the opportunity to discuss the latest developments in cash management. This time, we spoke with our customers and interested parties about the Bundesbank’s difference reports, the digital euro and cashback at the point of sale, among other things. Our presentations on the perennial topic of artificial intelligence also met with an open ear and led to intensive discussions.

Focus set!

For the first time in the history of our BargeldDialog Handel, it did not take place in Leipzig. This year, the corporate headquarters of dm-drogerie markt GmbH + Co KG – the dm-dialogicum – was the venue for the exchange on new opportunities for retailers. We were once again able to welcome players from a wide range of areas – such as payment services, treasury and cash management.

After a short introduction we started with the technical aspects and the discussion, which was appreciated by the participants. It quickly became clear where the interests of retailers were focused this year: The steady development towards cashback and the associated advantages and hurdles, as well as the opportunities that (may) arise in the future around artificial intelligence.

AI possibilities unleashed

Keep up with the trend: This can be stated as the overarching goal of our BargeldDialog. Joint dialog helps us get there. The focus is therefore always on current topics, challenges and solutions relating to cash management.

It is hardly surprising that artificial intelligence became one of the main topics of discussion – and at the same time our highlight of the BargeldDialog. Our presentation on coin roll recognition using trained AI laid the foundation for an extensive and exciting exchange. After we presented the prototype of the safe inventory via photo in our ICC app (Interactive Cash Control), the joyful philosophizing about possible applications quickly began among the participants.

Cashback: advantages and disadvantages at a glance

The second thematic focus shows that the event is not intended as self-promotion for our software solutions. We took an in-depth look at the supermarket checkout, which is increasingly functioning as a cash counter, and thus at the buzzword “cashback”. Rewe supermarkets introduced this service a good ten years ago. Today, or in 2022, when the EHI Retail Institute’s payment study was published, almost 90 percent of the grocery stores and drugstores on the EHI panel already offered cash payments.

As part of our cash dialog, the focus was primarily on the associated fees and the required supply of banknotes. Many retailers pay for their increased role in cash supply with fees on the amounts paid out. These have to be paid to the banking industry and are associated with increased costs in terms of cash supply. However, the solutions discussed give us a positive outlook for the future.

The Manager Cockpit

On 24.04.2024, we invited our customers to take a look at the latest releases. What was so beneficial about this was that they were able to get to know new features at the user meeting and benefit from them in practice. The Manager Cockpit in particular is an exciting innovation that we are developing directly in collaboration with our customers. The cockpit is intended to bundle all important key figures and centralize and simplify the control of necessary cash management measures. In addition, various requests and requirements have given us new motivation to further develop our ICC solution, for example. Thank you for that!

Conclusion

Two eventful days lie behind us, from which we were able to draw confirmation: The familiar circle and the opportunity to discuss topics at manager level always meet with approval. We also received feedback in 2024 that our BargeldDialog offers a welcome change of pace to focus on day-to-day business with new ideas. In addition to modern solutions, another aspect helps to overcome challenges: networking with like-minded people and a common path towards the future.

Are you curious about how we can meet new challenges together? Then let’s get talking!