Allied Bank: innovating for a new digital future

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With the goal of giving customers greater access, convenience and service quality, Allied Bank Limited (ABL) is starting to reap the rewards of innovative technologies that are also driving digital transformation in Pakistan’s banking sector.

August 06, 2024

In the rapidly evolving world of technology, the journey towards digital banking excellence requires relentless innovation and strategic foresight. At ABL, this is all part of a commitment to better serving its customers. By planning and implementing various initiatives, the bank has made significant progress in offering more seamless and convenient services.

The following milestones reflect ABL’s focus on tech-led transformation to meet changing customer needs and preferences:

These achievements go beyond the Bank’s own business. The initiatives have not only catered to the evolving needs of customers, but have also set new industry standards, significantly advancing the digital landscape of the financial sector in Pakistan.

Making e-banking mainstream

Online and banking on-the-go are playing a  key role in ABL’s pursuit of a digital future.

The digitalisation of products and services showcases the institution’s innovative mindset and approach. For instance, in relaunching its website, ABL introduced a more user-friendly interface with strategically placed call-to-action buttons, voice search functionality, plus the option for users to customise their viewing experience.

Customer support remains a priority at ABL. Live chat and callbacks are available for real-time assistance, along with the option to connect quickly through WhatsApp chat.

Other examples include enhancing customer accessibility and autonomy through “talking ATM” features, and empowering businesses to implement and monitor discount strategies through integrating discount management software with ABL point-of-sale machines. Further, by the end of 2023, the bank had set up 14 digital branches to provide a self-service experience.

The mobile offering is also becoming more user friendly. Continuous efforts to redesign the myABL Digital Banking App, for instance, emphasise simplicity, speed and personalisation. Some of the new features include being able to instantly create a virtual Visa debit card, seamlessly make payments to merchants, and activate dormant accounts online. Meanwhile, for the myABL WhatsApp channel, access to account statements, withholding tax certificates, cheque status inquiries and mobile top-ups are among recent services to boost customer convenience.

ABL has also created a first-of-its-kind enterprise loyalty programme called “myABL Coins” – an industry precedent offering an international redemption facility to over 3 million cardholders.

Augmenting technological transformation

To support many of these improved customer-focused services, ABL has implemented a cutting-edge customer relationship management (CRM) system.

ABL business teams now have access to a ‘Customer 360’ view, enabling the bank to provide services to customers according to their personalised needs and manage customers’ profiles in more methodical and meaningful ways. This has empowered the bank to systematically measure performance and execute targeted campaigns more effectively.

At the same time, to incorporate the critical role of data in decision-making, ABL signed a strategic partnership with a leading telco in Pakistan. This collaboration leverages data variables to identify local trends and patterns, with the insights applied in areas such as white space analysis, branch optimisation and digital marketing, based on customer persona, digital product development and cross selling.

ABL has also bolstered digital platform security. The bank has introduced innovative features such as two-factor authentication, touchless biometric authentication, device registration with a cooling-off period and end-to-end encryption for all digital transactions.

These advancements have boosted customer confidence in online banking services, ensuring robust security and privacy for myABL Digital Banking users.

Bringing artificial intelligence (AI) to banking in Pakistan

A key next phase for ABL’s drive to transform its offering involves pioneering the use of generative AI – both for internal processes as well as services to customers.

By exploring and utilising generative AI, ABL aims to harness its potential to revolutionise processes from customer service to risk management, product offerings and beyond. As a strategic initiative, it will enable the bank to make a more informed and data-driven decisions with less turnaround time and to enhance the customer experience.

To achieve these objectives, ABL has started to develop a large language model using the proprietary OpenAI ChatGPT platform, incorporating Retrieval Augmented Generation (RAG) to create generative AI solutions for various use cases.

Putting this into practice has led to the first phase of a human resource model, via an AI chatbot, to provide employees with accurate and up-to-date information based on the bank’s internal circulars, HR policies, procedure manuals and related documents. Similar benefits are being seen in the form of a compliance model.

To target its customers more effectively, ABL’s generative AI initiative is helping the bank to capitalise on data analytics.

This model segments customers into unique personas based on their spending habits, online behaviour, financial goals, transaction history and use of banking services. It provides valuable analytics to understand their needs and preferences so the tailor services and products can be offered.

Banking at a new digital level

Various applications of generative AI highlight the potential of digital innovation more broadly to transform the banking landscape.

Going forward, the bank will remain committed to developing further use cases, including implementing LLM for AI-based chatbots to assist customers through WhatsApp conversations. Such functionality will help customers in real time and ultimately deliver the customised and enhanced experience that will make banking more user friendly.

ABL remains dedicated to achieving its vision and creating sustainable value through growth and efficiency with a focus on financial inclusion and enhancing the customer experience through digitally-led solutions.

More broadly, the bank is committed to promoting the advancement of a digital ecosystem in the financial sector in Pakistan – reflecting ABL’s ongoing commitment to innovation, inclusivity and excellence in serving and contributing to the broader financial community.

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