How AI can boost Banking services

Posted by Manohar Parakh on December 14th, 2020

Artificial Intelligence (AI) is taking businesses to the next level mainly because of the services offered under this technology. Every industry has started seeing improvements in their business processes, costs and work efficiencies due to the introduction of AI in their field. For every industry AI brings something different to the table. AI has helped decision makers to take quick accurate decisions which are backed by facts and helps implement suitable options. When we talk about the financial sector, the insurance industry has already implemented AI in their field. Until now 54 percent of insurance companies have started using AI for their processes but only 34 percent of banking and finance institutions have adopted AI. As AI is in full swing, leaders need to closely understand where and how they can implement AI in their field and how they can reap maximum benefits.

Financial services sector is a potential area where AI has a lot to offer as it is an exciting time for the banking sector. There is huge amount of data being generated in the Banking and Finance Industry (BFSI) and there are a lot of insights in those huge amounts of data which needs to be analyzed. AI can easily examine the data fed to it and provide outcomes which can be used to create more opportunities and understand the current scenarios.

According to Accenture’s recent Accenture Banking Technology Vision 2018 report, 83% of Indian bankers believe that AI will work alongside humans in the next two years — a higher than the global average of 79%

Banks now offer services through digital means which has resulted in increase of online transactions, growth in customers who are increasingly benefiting from digital initiatives of banks. Customer experience is one such area which can be enhanced through AI as quick support can be easily provided to the customer and he can even be offered tailored banking products according to his requirements.

Below are some of the areas in banking sector which are going to transform themselves because of the introduction of Artificial Intelligence:

• Real-Time Fraud Detection
  

  Financial sector has been at the receiving end of numerous frauds and according to a report released recently by McAfee, frauds in the financial sector all over the world has resulted in global economic loss of about 0 billion. But as the technology landscape changes, banks are rapidly transforming and adapting new ways to counter threats and frauds. Big Data also plays an important role in providing banks with deep insights about a customer’s data and behavior patterns. When we talk about mitigation of financial risk, new solutions which are AI enabled and new advanced financial models will help banks identify fund flow analytics in real time and discover fraudulent transactions which can be stopped the moment they are discovered.

• Chatbots for Customer Service

  Like any other business, it is important for banks too to acquire new customers and provide them with services they need along with excellent customer support. People no longer visit banks to obtain minor information like interest rates, loans or services which a bank has to offer because all the customer needs to do is visit the bank’s website and find out all the information they are looking for in minimum amount of time. Chatbots have been proved effective by certain banks who are currently making use of this technology stating that installation of chatbots have resulted in upmost customer satisfaction. People find it tedious to call or email a bank in case of a query but they find it very convenient to reply to a ‘Hello’ by a chatbot on the bank’s website. Efficient, systematic and accurate conversation leads to great customer service.

  Read More>>