Artificial Intelligence is rapidly changing and transforming the banking and other financial sectors. As a result, banks are known to be the leading edge at adopting innovative technologies to assist their front-end and back-end activities.
Today’s digitalized and fast-paced world demands high flexibility AI and machine learning in banking to help banks modernize their several customer-centric and other services to improve employee efficiency and increase revenue growth.
How has AI Transformed the Banking Industry?
AI in banking has completely changed the ways banks interact with customers and operate today. It has significantly automated several operations and offered customers many interactive and robust solutions.
Here are some ways through which the banking industry is transforming and changing the way it operates with the help of Artificial Intelligence (AI).
1. Fraud detection and risk management
The banking industry has always been concerned with online frauds, theft, and security risks, because of money and sensitive banking information and details. Therefore, to fight against and prevent such fraud and secure such massive customer data, banks require advanced and innovative solutions, such as AI (Artificial Intelligence).
AI in banking and financial services helps identify fraud and offers support to the investigation team for enhancing the security with its fraud prevention practices.
2. Enhanced customer service and personalized client experience
Offering exceptional customer and client service has always been the fundamental banking service. Though with the help of seamless management and complete online support, AI chatbots in banking offer a personalized and instant client communication process.
Machine learning and conversational AI understand customers’ behavior and offer personalized solutions and product recommendations, considering their past preferences and choices of products and services.
In addition, incorporation of AI in the banking industry also allows customers to perform seamless banking transactions and access their bank account from their mobile devices.
3. Biometric identification
Biometric technologies are increasingly used in a wide range of sectors and industries for face recognition, speech detection, fingerprint recognition, and more. For example, banks and other financial services use retinal scans for account access and other security purposes.
This application also allows customers to access their bank accounts through their mobile applications for much ease and convenience.
Chatbots and virtual assistants use conversational AI to work 24/7 to offer efficient customer service. They effectively handle daily routine tasks and help customers find relevant products or information easily, such as knowing their transaction details, learning about loans, and more.
Chatbots in banking also improves employee productivity, as AI handles and solves basic customer queries, allowing employees to focus on other better, crucial, and high-value tasks.
5. Credit assessment
AI in banking helps banks make a secure and prompt decision by getting a clear picture of the danger and risks involved and the possible return from each individual. Machine Learning (MI) and AI investigate customer’s or borrower’s accurate and elective information and data sources in advance to make unbiased and coherent decisions.
6. Portfolio management and wealth planning
AI has taken personal wealth planning to a whole new level. It is because, for every investment and purchase, customers receive help and guidance for their loan approval limits and proposed outlay based on their current income and expenditure.
Banks today heavily rely on machine learning and smart Artificial Intelligence solutions to take real-time and intelligent investment decisions on behalf of their investors or agents. This allows them to consider a diverse range of assets and experiment with different strategies.
7. Voice assistant
Customers can now use banking features and services with voice commands and touch screens with the help of an important AI application called voice assistant.
IVRS (Interactive Voice Response System) helps banks answer customer questions, process requests, offer required relevant information, connect users to banking services, and more with no human error risks or human effort involved.
8. Digital wallets
AI is changing the future of payment methods and technologies through digital wallets. Applications such as Google Pay, PayPal, Paytm, Apple, and more have encouraged and made cashless transactions more popular and convenient, giving a whole another meaning to the payment aspect.
9. Future prediction outcomes
AI has made it possible to predict future scenarios or future customer behavior by analyzing past customer preferences and transaction behaviors. This prediction helps banks detect anti-money laundering patterns, identify fraud, suggest or recommend service to customers, and effectively up-sell or cross-sell.
AI applies Robotic Process Automation (RPA) to transform and review processes. This application automates about 80% of repetitive tasks or work processes, reducing human effort and improving operational efficiency.
Banks today are successfully leveraging MI and AI for their banking operations.
Banking and AI are transforming banks by:
- Boosting bank’s efficiency levels.
- Detecting challenges or fraud activities.
- Making efficient and intelligent decisions.
- Improving performance and operational
- Offering enhanced customer service and more.
Artificial intelligence will not completely replace the existing physical agents or bankers but help them handle common tasks and make better and smarter decisions. If you wish to incorporate intelligent AI solutions into your banks, check out interface.ai. We offer advanced AI solutions such as call center automation to increase net revenue, employee productivity, automate costs, and enhance customer experience.
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