Bank of Montreal is deploying AI to improve customer experience and grow digital sales of its products to gain market share.
In its third fiscal quarter of 2024, which ended June 30, BMO reported that nearly 3 million AI-enabled customer interactions were performed by its AI-driven chatbot, BMO Assist, according to its Aug. 27 earnings report.
“Our strategic goals are firmly in place, and that’s because we’ve built a clear competitive advantage in a highly fragmented U.S. market by modernizing the digital capabilities of the bank for the future,” Chief Executive Officer Darryl White said during the earnings call on Aug. 27.
The $1.2 trillion bank also reported that more than 150 million AI-driven financial insights were provided to customers during the quarter to help them improve their financial health, the earnings report stated.
THE BIG PICTURE: The Montreal-based bank also reported that its retail digital banking usership increased by 1% year over year to 4.6 million users in the quarter.
Bank of America, JPMorgan Chase and Wells Fargo also reported an increase in digital mobile usership.
Bank of America reported that its digital banking usership increased 3% YoY to 47 million, while JPMorgan reported that its mobile users increased by 7% YoY to 55 million.
BY THE NUMBERS: In Q3, BMO reported:
- Revenue of $8.1 billion, up 2% YoY;
- Non-interest expenses of $4.6 billion, down 5% YoY; and
- Efficiency ratio of 57.3% compared to 60.3% in Q3 2023.
OF NOTE: The bank is improving its digital onboarding, deposit capabilities and branch productivity to increase penetration in the U.S. market and gain market share, White said.
Self-service transactions, which include ATM, mobile and online transactions, accounted for 90% of all transactions, according to the earnings report, while digital sales for products like checking, saving accounts and credit products increased by 25% YoY.
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