How can AI Assist in Transforming Finance Industry

Banking CIO Outlook | Thursday, October 11, 2018

Artificial Intelligence (AI) has proven to be a beneficial investment mainly because of the valuable services offered under this technology. It is taking businesses to the next level, and industries are witnessing improvements in their business processes and work efficiencies due to the introduction of AI. Apart from providing real growth to business and leveraging machine learning, it is also simplifying human knowledge and helping in decision making as well.

The Insurance sector has already implemented AI in their industries whereas the banking and financial institutions are slow in the process of adoption. AI brings something different to the table, depending upon the need of the particular industry. Therefore, leaders need to carefully examine where and how they can implement AI in their field and how they can reap maximum benefits out of it.

AI is a perfect fit in this digital era. Banks are offering services through a digital medium which has increased online transactions, and growth in customers as AI can enhance the customer experience. Below mentioned are few areas wherein the banking sector can transform themselves because of the introduction of AI.

1. Real-Time Fraud Detection: The banking and financial sectors are more susceptible to frauds, and due to this it results in a global economic loss. But as the technology is advancing, banks are adopting and transforming new ways to encounter these threats and frauds. Big Data facilitates a smooth and effective movement as it provides the banks with deep insights into a customer's behavior patterns. When we discuss reducing the financial hazard, new solutions which are AI empowered and new advanced monetary models will enable banks to recognize fund flow analytics in real-time and discover deceitful transactions which can be stopped the minute they are found.

2. Chatbots Enhancing Customer Experience: Banks are moving towards providing excellent services to its customer. It has been proven to be a useful technology by few banks who are currently using this technology and stated that it had provided utmost customer satisfaction. Customers prefer talking to a Chatbot than calling or emailing a bank in case of any queries.

3. Improved Banking Product: AI analyzes a large amount of data through which it develops a more profound understanding regarding a customer's behavior and preferences. By understanding a customer's requirements, AI can serve them better with their improved services.

4. Enhanced Security: Whenever we are exposed to new technologies and innovations, it becomes essential to ensure that banks remain in compliance with industry regulations and protect their customer's data from data breach and frauds. The innovation will pair blockchain and AI-controlled algorithms which will offer various layers of present day and robust security which will reduce the danger of tampering with exchanges which results in losses. 

See Also: Financial Services Review

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