AI and technologies like machine learning, cognitive learning, and natural language processing are rapidly transforming the banking sector. AI is not only changing the traditional way banks operate, but is also facilitating delivery of smart banking services for improving fraud detection, providing more personalized services to customers, enhancing automation and operational excellence, and making accurate market predictions.
Incidents like cyber fraud and cybercrime, which have the ability to impact the bottom line as well as damage a bank’s reputation, have always been a serious concern for the financial services industry. And today, with the rise of e-commerce and digital payments, these types of frauds have only increased. Hence, it is a necessity for banks to adopt more sophisticated anti-fraud protection measures than ones that are currently available. This is where AI brings real value to the financial industry. AI-powered solutions analyze large volumes of security data to identify fraudulent behavior. Machine learning algorithms detect fraudulent transactions based on patterns from historical behavior to identify possible fraud and flag it in real-time.
Banking processes have traditionally been both complex and time-consuming, with a lot of documentation and paperwork involved. But now, with AI, these processes have been automated and accelerated. AI enables to generate precise financial reports in a shorter period of time and with no errors, identify breaches in corporate policies and raise flags faster, and route documents and information more quickly around the organization. On the whole, the increased levels of automation in banking processes expedite service delivery time, reduce human errors and make operations much more efficient.
Today’s customers prefer to have more control over their experiences with a brand and hence have begun embracing self-service channels that allow them to do so. Rather than waiting in long queues to speak to a customer service advisor, today’s customers are increasingly opting to use automated interactive voice response (IVR) systems and chatbots. AI chatbots, when linked with a bank account, analyze income and spending patterns, and share useful analysis and insights with customers. They also act as personal digital accountants and offer relevant financial planning tips. AI chatbots are transforming the way customers interact with banks, making the overall banking service more personalized.