Artificial Intelligence (AI) is the future of the banking industry. AI has disrupted various industries and banking is one of those in which the maximum potential is found. A research on AI in banking says that AI in banking will save the banking industry more than $1 trillion by 2030.
AI in banking industry: The future is here
Present-day banking is a lot different from your traditional banking. There is a whole new range of banking products and financial services that can be availed by customers. We have been introduced to contemporary banking services such as money-transfer apps to mobile payments, trading, and investments to crowdfunding and peer-to-peer lending. The present generation wants all these services at a lightning fast speed - without sacrificing in simplicity, security and great user experience.
In order to make customers happy with the best and fastest service, banks are introducing AI in their banking processing. AI helps banks in many different aspects of the banking process. Here are a few ways how AI can extend a helping hand towards the banking industry.
5 ways AI is making banking easier
Credit Decisions with AI
Credit decisions are one of the crucial decisions in the banking sector. AI can help banks by providing a faster, more accurate assessment of a potential borrower. Using AI for credit assessment is a less expensive and better medium to check the creditworthiness of customers as AI can check a wider variety of factors, which leads to a better-informed, data-backed decision. AI helps banks/lenders to differentiate between high default risk applicants and low risk associated loan applicants.
Banks using AI in credit decisions can gain better results as credit risk is minimized to a great extent when AI checks creditworthiness. A United States based Automobile lending company has reported that they have cut losses by 23% annually after implementing AI in credit decisions.
Security is the other name of banking. Banks must be bankable so that security and swift transactions can be expected. AI can be programmed to detect frauds in the transactions with the help of predefined rules. Moreover, any suspicious activity in customer’s account can be tracked based on behavior analysis.
AI in banking is also helpful in protecting personal data of the customer. AI in banking can be used as a shield against cyber crimes which have become frequent in the past few years. In banking, AI has a vast scope in cyber security. AI-powered mobile apps can address fraudulent activities in customers accounts; making banking a lot more secure and seamless.
24X7 Customer Service
Customer service is at the heart of the banking industry. The AI smart assistants can help banks by providing effective and personalized customer care 24X7 in both, text and voice platforms.
AI Smart assistants can be used as answering machines, serving several customers at a time. Customers also gain better satisfaction as they don't need to wait even for a minute to get their queries solved.
There are a number of functions that can easily be handled by AI assistants. Direct and basic operations, including opening or closing an account, transfer of funds, requesting checkbooks, cancel cheques, requesting ATM card and so on. Most of the simple banking functions can be done with AI assistants and if there is any customer issue that your AI assistants cannot resolve, it redirects the call or message to the respective department.
Financial Advisory Services
AI can also be a part of the advisory committee of the bank. It is a revolutionary invention in the field of baking, a prime example of collaboration between man and machine; called a bionic advisory.
Neither man nor machine alone can make the best banking decisions individually. The best decisions require predictive analysis done by machines along with human insight to take the best banking decision and step forward.
Trading and Investment
AI plays a vital role in investment companies. Investment companies rely on computers and data scientists to determine the future of the market, spot trends and invest accordingly.
The predictive analysis feature of AI is used to predict the trends in the market. Machines can predict markets in a better way as a huge amount of past data can be processed in a short while. AI-enabled machines are trained to observe patterns in past data and predict how these patterns might repeat in the future.
AI helps when it comes to suggesting in investment plans, this is done depending on the risk appetite of an individual.
This disruptive and dynamic technology can also suggest individuals on when to buy, hold and sell stocks. Even people with a lower risk appetite can set AI in such a way that he/she can receive alerts for when the market is expected to fall. Such alerts help investors to make decisions about whether to stay invested in the market or to move out.
AI and Banking is all set to go far together
The banking industry has already started to adapt AI in various aspects. AI becomes an inseparable part of the leading banks like SBI, Yes Bank and TDECU. Introducing AI has helped these banks and credit unions to achieve tremendous growth in revenue, while cutting down the operational cost.
The AI assistants of all three banks are created and designed by interface.ai.
We, at interface build AI-powered Intelligent Virtual Assistants that can help banks in different ways. We build new age self-serve channels with Voice and Text compatibility to simplify customer experience with AI-powered Intelligent Virtual Assistants.
Be an industry leader for the banking industry by introducing AI. Request for a demo here and make the AI be your partner in your success journey.