AI Sets Trends in Banking Source

Banking CIO Outlook | Thursday, October 18, 2018

Today, banks are one of the basic requirements in everyone’s day-to-day financial activities. But most of the people, especially the beginners, struggle to get an understanding about the various actions and processes required to get their work done at a bank. The new generation of customers expects more personalized or customized and 27/7 services in their banking activities, and banks need to be highly responsive to satisfy the customers.

Most of the dominant banks in the U.S. are investing hugely in imbuing their services with Artificial Intelligence (AI) and Machine learning (ML). These banks have already minimized their traditional way of manual banking in around 400 of their local branches in 2016 and today meet their margin thresholds through mobile banking combined with ML, and are able to achieve beyond their customers’ expectations. Five banks that are already using machine learning are JPMorgan Chase, Wells Fargo, Bank of America, Citibank, and U.S. Bank. These banks point that practicing banking with machine learning is one of the best practices.

According to global management consultancy Accenture, banks that invest in AI and human-machine association tools could increase their income by above one-third (34 percent) by 2022.

AI is measured as one of the best disruptive technologies for today’s banks, with a recent PwC survey stating that 72 percent of senior management considers AI and machine learning (ML) as a means of competitive advantage. The study also indicated that 52 percent of banks are already showcasing generous commitments to AI, with a projected 66 percent investment by 2020.

As James Duez, executive chairman and co-founder of the AI company Rainbird, says that the banking sector is under pressure to meet the needs of customers. Having a vital role in the financial sector, the banking industry should go further for providing customers with more technological and automated services. AI is ideally positioned to enable banks to address such customer needs. The application of AI in banking would be a stepping stone in showing improvements in various functions of a bank, not just regarding the quality of customer service but also reducing human workload, increasing efficiency and satisfying customers’ expectations.

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