bankingciooutlook

How AI Enhances Banking and Financial Services?

Banking CIO Outlook | Tuesday, February 09, 2021

The transformation of fintech and the introduction of AI in banking has opened the door to many opportunities. Chatbots and personal assistants save time and help find answers to some of the most commonly asked questions, so that there is no longer any need to engage in discussions with workers and visit a physical bank.

Fremont, CA: The convergence of finance and technology has led to the rise of a whole new sector – fintech. Driven by artificial intelligence and new technologies, fintech simplifies and automates financial operations. Consumers can handle their finances with only a few mobile taps. Understandably, existing banking institutions are becoming increasingly serious about the use of AI in the banking and financial sectors.

Customers gradually understand the benefits of fintech solutions. More than 61% of Americans are now using digital banking services, and the global volume of mobile payments is predicted to reach $1 trillion by the end of this year. However, AI banking opportunities are not limited exclusively to mobile services.

AI has the ability to disrupt just about any established industry, and it can fully unleash its revolutionary potential in the banking and financial sectors. Below is a list of several tangible benefits that AI applications can bring to the banking table.

Improved customer support

Millennials hate the banks! This is old news, but the findings of the survey came as a surprise back in 2014. Traditional banking has failed to fulfill almost all of today's youngest and most dynamic generation's expectations: the call for simplicity and fast time-to-value.

The transformation of fintech and the introduction of AI in banking has opened the door to many opportunities. Chatbots and personal assistants save time and help find answers to some of the most commonly asked questions so that there is no longer any need to engage in discussions with workers and visit a physical bank.

In addition, AI-based assistants help create individual financial plans and make personal finance management enjoyable and entertaining. There's no need to wait in the queues and try to decipher the fine print, for that matter.

Reduced workloads

Apart from the apparent transformation in customer service, a silent shift is taking place in back-office operations. Increasingly, robotic process automation (RPA), an important part of a broader AI concept, helps automate repetitive, rule-based procedures streamline tiresome and diligent routine operations, and prevents errors and flaws.

By eliminating the need to open new jobs, financial firms are optimizing their wage costs. Existing workers, on the other hand, will grow and evolve in a more innovative way.

Check out: Top Fintech Solution Companies

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