Artificial intelligence is transforming the financial industry faster than any other technology in recent times and it is poised to bring a path-breaking shift. Banks strive to reduce costs, maintain margins, and exceed customer expectations through personalized service. In this blog, we talk about how Artificial Intelligence is changing Banking.
Banks and financial institutions are being given the ability to completely redefine their operations by incorporating AI into their business strategy. An important aspect of AI in banking is gaining insight into customer preferences and ensuring their satisfaction. By providing instant interactive solutions, AI technology has redefined the customer experience. Here’s how AI is bringing in change in the banking sector:
Management of Fraud and Risk
Online fraud and scams have always been a source of concern in banking, making it difficult for banks to combat. With its fraud prevention tactics, AI identifies fraud factors, assists investigation teams, and improves security.
Identification based on Biometrics
Biometric technologies are increasingly being used in data centers to support face recognition and speech detection. Retinal scans and other biometric technologies are used for security and access in the banking or financial services sector. These technologies improve security by authenticating access to internal clients. Clients can now easily access their banks via apps on their smartphones, so following a strict security protocol is critical.
Chatbots
Chatbots and virtual assistants, which are available 24 hours a day, are smart ways to provide efficient customer service. They assist in freeing up daily routine tasks and informing customers about their transaction details or any other information they require.
Trading and Securities
Banks use AI for over-the-counter derivatives reconciliations, forex transactions, target balancing, and information validation in the back office with trades enabled in the front office. Robotic process automation (RPA) aids in the review and transformation of processes by automating 80 percent of repetitive work processes and freeing up knowledge workers’ time for value-added operations that require a high level of human intervention.
Credibility Assessment
By analyzing the creditworthiness of individuals or businesses seeking loans, credit assessment AI assists banks in their most critical business of lending. AI can examine the borrower’s data sources to generate a coherent decision.
Digital Payments/ Wallets
Wallets in the Cloud AI has ushered in digital wallets, which are quickly becoming the payment technologies of the future. Apps such as Apple Pay, PayPal, Google Pay, Paytm, and others have increased the number of cashless transactions and given a whole new meaning to the concept of buying, selling, or paying.
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