bankingciooutlook

How AI is Reshaping the Banking Sector

Banking CIO Outlook | Monday, September 06, 2021

Chatbots are similar to virtual assistants such as Siri or Alexa, except that when it comes to B2C, AI chatbots are likely to be constrained to a narrower set of parameters rather than the broad range of queries that Siri may handle.

Fremont, CA: As organizations have accelerated their digitalization journeys in recent years, artificial intelligence (AI) is one of the innovative technologies that is seeing widespread adoption across sectors, including AI transforming banking and financial services in multiple ways.

The significant change and improvement to processes that AI can impact in a sensitive space such as banking are some of the reasons why the finance industry cannot control out its role across departments and processes. There are many ways to skin a cat, and the applications of AI in banking are no exception.

AI Chatbots in Banking

Chatbots are similar to virtual assistants such as Siri or Alexa, except that when it comes to B2C, AI chatbots are likely to be constrained to a narrower set of parameters rather than the broad range of queries that Siri may handle.

AI chatbots are becoming an expected investment for banks of a certain size as they can communicate with customers without incurring ongoing costs beyond their initial implementation. This saves money and also saves time, with research indicating that financial institutions save about five minutes on average for each communication handled by the chatbot.

Data Collection and Analysis

Banks generate massive amounts of data based on millions of transactions performed every day, but the sheer volume would make informed analysis impossible for human employees. It is critical to structure the data into digestible amounts and patterns so that forward-thinking strategies and risk management approaches can be implemented.

Just as AI can process information to help in decision making in giving loans or identifying fraud, it can also collect and analyze data from multiple sources, including mobile apps, as well as arrange it in structured ways to aid in driving strategy.

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