How are Blockchain and AI Transforming Banking Industry?

Banking CIO Outlook | Thursday, June 27, 2019

Technologies such as AI and Blockchain are creating a risk-free environment and helping in increasing customer satisfaction.  

FREMONT, CA: Having seen and understood the technological advancements in the front office banking environment, one might overlook the transformation in the back office side. However, experts believe that the undetectability of a change makes the transition more effective and seamless.

As technological development keeps on changing the industrial landscape, the banking sector is transforming with the alteration. The move to reconstruct the entire industry with digital equipment is not only viable but also crucial. 

In the past five years, the financial sector has experienced rapid growth, which has elevated customers’ satisfaction. From age-old safety features to sluggish remote applications, the transformation has changed the entire interior and exterior of the traditional sector and provided a new sophisticated approach for upcoming enterprises. Two digitization outcomes that have revolutionized the face of the entire financial industry are blockchain and artificial intelligence (AI) technology.

Blockchain Technology

The decentralized financial data management platform based on blockchain technology has impacted the banking industry. Experts believe that by adopting blockchain, commercial enterprises are not only experiencing growth in establishing proper security systems but also helping the upcoming companies with cost-effective service protocols.  

As criminals become more tech-savvy, cyber risk and unauthorized entry have started to bug the safety and security of the banking industry. However, the new segregated ledger approach of blockchain technology is acting as a cryptic firewall, which in turn is making the transactional atmosphere fraud-free.

Artificial Intelligence (AI) in Finance and Banking

Initiation of the digital age has exploded the financial ecosystem with a massive influx of structured and unstructured data, and the mounting pressure has compelled the industry professionals to undertake AI as the last option. Commercial enterprises have gained access to infinite possibilities with AI-powered platforms.

With application ranging from back-office operations to risk analysis, the integration of AI in the banking sector has perfectly summarised all the inherent qualities needed for an efficient and robust banking system.    

See Also: Financial Services Review

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