While the banking sector has long been technology-dependent and data-intensive, technological advancements have diode to exponential growth within the banking industry. As a result, the banking sector has become quicker, safer and reliable. To remain ahead in the competition particularly with the worldwide pandemic, digital disruption and new entrants developing with new technology, it’s become mission-critical for the prevailing players to drop the standard banking practices and adopt new measures.
AI technology has the aptitude to drive innovation more and faster than ever before. AI will facilitate improve efficiency, alter a growth agenda, boost differentiation, manage risk and regulative needs, and completely influence client experience.
How AI can help the banking sector grow ?
Automation hit investment banking as well as commercial banking and it hit hard. It’s important to mention that AI covers everything in banking from customer service to back, middle & front office operations. AI in banking will permanently shape the way banks operate, while helping the customer to have a more comprehensive financial experience.
By integrating AI into banking operations, banks will reduce the need for manual data entry and other human processes that can often lead to errors. This not only saves time for the individual and the bank but eliminates costly mistakes. Bank front workers can now focus on higher-value tasks, like deepening customer relationships and matching customers to the right services for their needs.
AI will provide a more personalized banking service based on the consumer data analysis which will guide the costumer to the right choices, needs, services & products. It will establish a trustful bank-customer relationship that will increase over the customer experience thanks to AI!
To conclude, AI in banking will be able to serve their customers faster, with more efficiency, and at all times of the day.
AI use cases in banking
AI can be the solution of a wide range of business banking problems. So, we’ve compiled a list of AI use cases and application areas in the banking industry:
1) Front Office Optimization:
· Banking Customer Care
Customer service is an essential aspect of banking, artificial intelligence helps understand the customers better. Applying Interactive Voice Response System (IVRS), Chatbots and Biometrics Identification in order to improve and automate customer service.
KYC(Know Your Customer), using emotions detection AI can also help banks save massive costs on human resources and large amounts of time needed to evaluate KYC.
2) Middle Office Optimization:
· Fraud Prevention and Security
Banking industry has a large number of Fraud and Money Laundering problems. Artificial intelligence systems have the ability to recognize unusual data pattern in order to detect any occurrence of fraud or questionable banking transactions.
In conclusion, AI has the ability to better detect fraud through behavioral analysis being integrated with cybersecurity systems, banks can now catch financial crimes much faster and with greater accuracy than humans.
3) Back Office Optimization:
· Wealth Management
AI not only benefit the banks but also helps the user to manage their wealth. AI can replace human decisions with more complete and accurate analyses and risk assessment, helping to ultimately maximize the value of the portfolio. Machine learning can help expand portfolios as well by scanning the global market for new investment opportunities, offering real-time data to inform decisions, and providing a quick sense of market sentiments around the globe. AI now can power systems that allow the banks to manage risk by analysing their plans, studying failures from previous strategies, and eliminating human errors.
Without forgetting AI’s ability to reduce the number of repetitive jobs Categorizing incoming emails, cash operations accounting processes and Constant portfolio evaluation using less time and less human energy.
At the end, AI is a functionality changing revolution that surely increase profits, with its so many advantages, the adoption of AI should be the priority of the banking sector!