The pace of digital transformation and the rate of adoption of digital technologies such as AI, ML, Big Data, etc. It has undergone incredible change in recent years, reshaping many industries, and banking is no exception. The use of AI in banking has made the industry more customer-centric and efficient than ever before.
Here are 10 reasons why banks and financial organizations should rethink investing in AI in today’s digital banking economy.
- Cyber Security and Fraud Detection
With such a large volume of digital transactions, the banking industry is increasingly forced to step up its cybersecurity and fraud detection efforts. This is where AI services and solutions come into the picture. Yes, AI can help banks reduce risk and track abnormal transactions and behavior. Artificial intelligence and machine learning can quickly detect fraudulent activity and notify both customers and banks. A trusted AI consulting firm can help you implement an AI-powered cybersecurity solution to help you quickly and intelligently identify and respond to threats. An AI-powered advanced threat detection (SIEM) solution can help with automatic investigation and security analysis, as well as provide intelligent threat intelligence to banks.
- Improved investment evaluation
Interest income is the most crucial source of income for banks and other financial institutions. AI-powered solutions can help clients and bankers identify the most appropriate investment recommendations. Furthermore, the decision to invest can be made simple and convenient with the help of the investment analysis program. A trusted AI solutions company can help you design and implement a robust solution that will help you get there.
- Improved customer experience
AI, with its ability to collect and evaluate customer data in real time, is helping to gain a better understanding of customer behavior and needs, thereby enriching the customer experience. With its 24-hour support and personalized service for live query resolution, customers enjoy a seamless banking experience. Convenience has brought customers many more benefits with the help of AI.
For example, you can now open a bank account or check details from the comfort of your home through a virtual assistant on a bank’s portal without needing to contact a real representative. Real-time customer authentication and identity verification with smart digital KYC features and a seamless onboarding process is an added benefit of AI technology that requires no human intervention.
- Reduced operational costs and risks
There are positive human interactions. However, the main negative aspects would be the likelihood of inaccuracy, which could have detrimental effects. A financial institution could be put at risk with just one wrong keystroke, damaging its reputation beyond repair.
As more people have access to various financial services without the risk of errors, you can anticipate greater accuracy with the adoption of AI in banking and finance organizations. For example, AI can help automate routine and repetitive administrative processes, thus reducing human error and data duplication, saving time and improving accuracy.
- Enhanced evaluation of loans and facilities
Lending organizations can assess a borrower’s loan eligibility with the help of their credit score. However, AI in this scenario can help a bank or financial organization make informed decisions. For example, even when a loan applicant or borrower provides little evidence, AI-based algorithms can propose credit approval or denial considering various factors based on pre-defined credit rules. Think of a banking app that can help a customer track their credit score and eligibility based on pre-defined rules.
- Monitoring of market trends
Artificial intelligence in banking can be used to help people when is the best time to invest in stocks. Because financial services use cutting-edge artificial intelligence techniques, banks are able to process vast amounts of data and forecast the latest market, currency, and stock movements thanks to artificial intelligence in financial services. Therefore, trading is a convenient decision-making procedure for both customers and the client due to the high data processing capacity. Advanced machine learning techniques offer investment suggestions and help gauge market sentiment. AI for banking also recommends when to buy shares and issues alerts when there is potential risk. This state-of-the-art technology also helps speed up decision-making and makes trading convenient for both banks and their clients due to its high data processing capacity.
- Data collection and analysis
Financial and banking institutions record millions of transactions almost every day. Often, it becomes cumbersome for bank employees to manually collect and process the same. It is almost impossible to structure, record and synchronize such a large amount of data completely free of errors. Artificial intelligence services and solutions can help in effective data collection and analysis in such a case. AI in data analytics can help you unlock insightful customer analytics, risk analysis, business intelligence, and much more.
- Process automation
Process automation helps reduce costs and increase operational efficiency. Furthermore, it allows the user to focus on a variety of complex operations that require human involvement. Automation in banking and finance provides a number of enhancements, such as application processing, fraud detection, and customer onboarding. A reputable AI consulting firm that offers exceptional automation services can help a bank go a long way when it comes to reducing operational and administrative costs.
Also read: How a leading banking organization saved $1 million with strategic RPA and AI services?
- chatbot
Chatbots play a vital role today to optimize operations in the banking sector and improve the customer experience. With 24/7 personalized support available to customers, especially during that time when calls to banks cannot be made, chatbots help well and answer all queries on behalf of physical attendees. Many simple customer service operations can be replaced and many processes can be automated as well. They even continue to proactively update customers on deals, special discounts, services, credit report updates, portfolio updates, and more.
See how Futurism’s AI chatbot services can help your bank take customer experience to new levels.
- Normative compliance
The banking industry is one of the most strictly regulated industries of all. Banks maintain an internal compliance team to handle these issues, but when done manually, these processes take much longer and cost a lot of money. Therefore, banks need to update their procedures and workflows to comply with compliance rules, especially compliances related to data privacy, which are frequently changed and strictly controlled. Artificial intelligence technology along with deep learning and natural language processing (NLP) can help interpret compliance standards for financial firms and speed up the compliance process to ensure optimal accuracy.
See how Futurism’s RBI-compliant security services can help UCBs adopt industry-leading threat intelligence
Carry
Seeing technology trends and the multiple benefits of AI and machine learning in the banking industry, most banking financial management experts expect to see positive change. Therefore, banking institutions should invest in AI services and solutions to deliver novel experiences and outstanding services to their customers.
The world has a progressive approach towards technological innovation and the way in which industries are welcoming technological advancement is commendable. AI is one of those technologies that keeps on innovating over time. Banks will be able to provide highly personalized and secure services by taking advantage of top-tier services toartificial intelligence services and solutions Getting all these advantages is no longer a distant goal. Banking industry leaders have already adapted AI and acted responsibly to reap these benefits, and the future of AI in banking looks to be getting brighter with time.
At Futurism we collaborate with banks and other financial organizations to develop unique models based on AI and ML that help various departments in a banking or financial organization to improve revenue, reduce costs and manage risk. Futurism is a leading global AI solutions company helping businesses leverage cutting-edge AI and business intelligence solutions for more than two decades.
Contact us if you are looking for a trusted AI consulting firm to help you develop and implement a long-term AI strategy and solutions roadmap for your bank.
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