The pace of digital transformation and adoption rate of digital technologies such as AI, ML, Big Data, etc. has undergone an incredible change in the recent years reshaping many industries, and banking is no exception. The use of AI in banking has made the sector greatly customer centric and efficient than ever.

Here are 10 reasons why banks and financial organizations ought to rethink about investing in AI in today’s digital-first banking economy.

• Cyber Security and Fraud Detection

With such large volume of digital transactions, the banking industry is increasingly required to step up its cybersecurity and fraud detection efforts. This is where artificial intelligence services and solutions come into the picture. Yes, AI can help banks in reducing risks and tracking abnormal transactions and behaviors. AI and machine learning can quickly spot fraudulent activity and notify both customers as well as the banks. A trusted AI consulting company can help you deploy AI-powered cybersecurity solution to help you identify and respond to threats in a quick and intelligent manner. An advanced threat detection solution (SIEM) powered by AI can help with automatic investigation and security analysis besides providing smart threat intelligence to banks.

• Improved Investment Evaluation

Interest income is the most crucial source of revenue for banks and other financial institutions. AI powered solutions can help customers and bankers identify the most apt investment recommendations. Additionally, the decision to invest can be made simple and convenient with the help of the investment analysis program. A credible AI solutions company can help you to engineer and deploy a robust solution that will help you achieve that.

• Enhanced Customer Experience

AI with its ability to gather and evaluate customer data in real-time, is helping receive a better understanding of customer behavior and needs hence enriching customers experience. With its round-the-clock assistance and personalized service for live query resolution, customers are enjoying an uninterrupted banking experience. Convenience has given clients many more other benefits with the assistance of AI.

For instance, one may now open a bank account or check for details from the comfort of their home through a virtual assistant on a bank’s portal without the need to get in touch with a real rep. Real time client authentication and ID verification with a 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

Positive human interactions exist. However, the main negatives would be the likelihood of inaccuracy, which could have detrimental effects. A financial institution might put themselves at risk with only one incorrect keystroke, harming their reputation beyond repair.

As more individuals have access to diverse financial services without the risk of errors, you may anticipate more accuracy with the adoption of AI in banking and financial organizations. For instance, AI can help automated routine and repetitive administrative processes thus, reducing human errors and data duplication and saving time besides improving accuracy.

• Improved Loan and Facility Evaluation

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 a financial organization make informed decisions. For instance, even when a loan applicant or borrower furnishes scant evidence, AI-based algorithms can propose approval or denial of the credit while considering several factors based on a predefined credit rules. Think of a banking app that can help a customer track his/her credit score and eligibility based on predefined rules. 

• Tracking Market Trends

Artificial intelligence in banking can be used to assist people when is the best moment to invest in stocks. Because financial services are using cutting-edge AI techniques, banks can process huge amounts of data and forecast the most recent market movements, currencies, and equities because of artificial intelligence in financial services. Hence trading is a convenient decision-making procedure for both the clients and the customer due to the high data processing capability. Advanced machine learning techniques offer investment suggestions and assist in evaluating market sentiment. AI for banking also recommends when to buy equities and issues alerts when there is a possible risk. This cutting-edge technology also aids to accelerate decision-making and makes trading convenient for both banks and their clients due to its high data processing capability.

• Data Collection and Analysis

Financial and banking institutions record millions of transactions almost every day. Often, it becomes cumbersome for employees of the banks to collect and process the same manually. It is quite impossible to structure, record and synchronize such a huge amount of data completely error free. Artificial intelligence services and solutions can aid in effective data collection and analysis in such a case. AI in data analytics can help you unlock insightful customer analytics, risk analytics, business intelligence and much more.

• Process Automation

Process automation helps in lowering costs and raising operational efficiency. Additionally, it enables the user to focus on a variety of intricate operations that demand human involvement. Automation in banking and finance provides a number of improvements such as application processing, fraud detection, and customer onboarding. A reputed AI consulting company that offers exceptional automation services can help a bank go a long way when it comes to cutting on operational and administrative costs.

Read also: How a leading banking organization saved $1M with strategic RPA and AI services?

• Chatbots

Chatbots play a vital role today in streamlining operations in banking sector and enhancing the experience of customers. With 24*7, availability for customers for personalized support, especially during that time when no call to banks can be done, chatbots assist well and answer all queries on the behalf of physical assistants. Many straightforward front office operations can be replaced and many processes can be automated as well. They even proactively keep updating customers about the offers, special discounts, services, credit report updates, portfolio updates and many more things.

See how Futurism’s AI chatbot services can help your bank drive customer experience to new levels.

• Regulatory Compliance

Banking industry is one of the most strictly regulated industries of all. Banks keep an internal compliance team to handle these issues, but when done manually, these processes take a lot longer and cost money abundantly. Banks thus require updating their procedures and workflows in order to comply with compliance rules especially, data privacy related compliances, which are frequently changed and stringently monitored. AI technology coupled with Deep learning and Natural Language Processing (NLP) can help interpret compliance standards for financial businesses and speed up the compliance process assuring optimum accuracy.

See how Futurism’s RBI Compliant Security Services can help UCBs adopt industry leading threat intelligence

Takeaway

Seeing the technological trends and multiple benefits of AI and machine learning in banking sector, a majority of banking experts of financial management expect to see a positive change. Thus, banking institutions ought to invest in artificial intelligence services and solutions to offer novel experiences and outstanding services to their customers.

World has a progressive approach towards technological innovation and the way industries are welcoming the tech-advancement is commendable. AI is one such technology that keeps innovating over time. Banks will be able to give highly personalized and secure services by leveraging top-notch artificial intelligence services and solutions. Achieving all of these advantages is no longer a distant goal. Leaders in the banking industry have already adapted AI and acted responsibly to gain these advantages and the future of AI in banking seems to be increasingly bright over time.

We at Futurism collaborate with banks and other financial organizations to develop unique AI and ML-based models that assist various departments in a banking or financial organizations to improve revenue, cut costs, and manage risks. Futurism is a leading global AI solutions company helping businesses leverage cutting-edge AI and business intelligence solutions for over two decades.

Contact us if you’re seeking for a trusted AI consulting company to assist you in developing and implementing a long-term AI strategy and solution roadmap for your bank.