The rise of Artificial Intelligence (AI) is being strongly felt as the years pass. AI has become to be one of the most sought-after technologies in digital marketing today as it transforms workflows, among others, that make businesses more efficient today. In the banking industry, most banks are aware of the potential benefits that AI can bring.
With that said, there are a large number of banks that use AI to improve their service delivery. So far, a huge percentage of banks with over $100 billion in assets are already implementing AI strategies. The most used AI technology in banks comes in the form of chatbots and anti-payments fraud.
Not only that, just like in other industries that deploy AI strategies, Banks use AI to enhance the customer experience by allowing 24/7 customer service.
AI Applications in Banking
There are three main channels where banks can utilize AI:
- Front office
- Middle office
- Back officer
More banks are using AI strategies on the front end because they find it useful for customer identification and authentication. The use of AI technology on this bank channel is through a chatbot that mimics live employees. Chatbots deployed by banks aim to deepen customer relationships and deliver personalized insights and recommendations to clients.
In the middle office channel, banks implement artificial intelligence to detect and prevent payment fraud. Additionally, AI helps improve the processes that involve Anti-Money Laundering (AML) and Know-Your-Customer (KYC) regulatory checks. As an example of real world use of AI within the finance environment, Bad Credit lender Credit Made Simple has been trialling the usage of a proprietary data matching AI system which can verify how likely their customers are at making repayments through previous behaviour datasets. This trial has been running for 12 months successfully and will now be rolled out as a standard assessment tool from July 2020.
With these AI strategies already deployed in most banks today, it merely highlights the need for a holistic artificial intelligence strategy that will extend across business lines, partnerships with external partners, and qualified employees.
Artificial Intelligence in the Future of Banking
Now that AI is widely used by most banks and it has proven to be extremely useful to help build more efficient processes, it’s no wonder that AI will continue to dominate the banking industry in the future.
For one, AI will dominate the area of digitization in the banking industry soon enough. Put simply, AI helps enhance customer experience, reduces human error, builds strong and loyal customers, helps in the movement of large cash inflow and outflow, etc. Therefore, it only makes sense for AI to remain present in the future of banking, as it will have significant contributions to the most valuable processes in banks.
AI can also help provide bank clients with more personalized financial guidance that will allow customers to make quick and easy financial decisions. Artificial intelligence can deliver up-to-date information on current market structures as well as provide suggestions on bonds and stocks that clients can invest in.
Needless to say, Ai in the banking industry is a sure thing. Artificial intelligence is a useful technology in all types of businesses today and in the world of finance, it can help improve processes and deliver more accurate results that can guarantee the success of every banking transaction.