Customers across all industries today demand high-performance technologies that can be easily incorporated into their various aspects. Mission-driven organizations are now using the latest technologies like AI, IoT, Robotics, and Cloud for their critical operations, which has given tremendous results. Digitization of key processes has proved to offer a competitive edge between the tech-enthusiastic enterprises and others. The Banking Industry is one of the several industries that has been leveraging advanced technologies and advanced computing for powering their digital banking & financial services. The most recent technology that is being utilized extensively by this industry is Artificial Intelligence or AI.

AI in Banking Services

In the early days of the industry, AI was being used in automated customer-facing chatbots that would respond to customers' common queries. With time, AI technology has made advancements, resulting in becoming more flexible and dynamic as per the customer needs. By encoding the capabilities of Artificial Intelligence in humans' place can boost a lot of interactions and carry out essential tasks in the banking ecosystem. Some of these tasks include- account management, transfer of funds, payments of bills, risk assessment, and automating the documentation process. Artificial Intelligence is not a new technology to the banking industry. The industry is already using Big Data analytics along with various machine learning algorithms in their core operational areas. AI-powered Chatbots are now offering financial assistance to banking customers without any human intervention.

AI in Banking Use Cases

AI has offered a significant contribution towards transforming the digital banking experience of users. Some prominent use cases include-

  • AI-Powered Chatbots for Better Customer Experience

The banking industry is utilizing AI-enabled chatbots to serve the basic needs of a customer. These basic requirements include inquiries related to core banking services, knowledge of services being offered, and other communication channels. Chatbots can also be used for promoting banks and their associated services across social media channels, where a significant portion of people are active.

  • A Game Changer for Core Operations

Banks usually tend to include routine and monotony of core operations. AI can be used for processing huge volumes of data and segregate them as per the requirement. With AI getting involved in such functional areas, it can reduce chances for any error and avoid losses caused due to human errors. With all, there will be increased productivity along with enhanced revenue for the banking industry.

  • Activity Automation

By using artificial intelligence technology, banks can overcome tedious & human-intrinsic tasks with ease. This technology offers a solution through programming machines and robotics for accomplishing tasks backed with the highest quality of outputs and results.

  • Reduced Processing Durations

Banking customers usually tend to avoid long lines and delays in getting their services. With AI being included in the core banking system, longer processing time concerns can be easily reduced. The very fundamental reason it gets reduced significantly is the faster and accurate information processing. Additionally, machines tend to learn relatively much faster as compared to their human counterparts.

  • Improved Security

Human handling of critical data can constantly be exposed to hacking, putting them at high risk at all times. Irrespective of his industry, any customer today considers the security of his data as the top priority. Tools using AI technology ensure that the customers are not compromised of any security breaches when backed by proper authentication mechanisms.

  • Becoming More Trustworthy

AI can be used for identifying any form of anomalies in the financial data by making it easier to comply with any fraud regulations. By identifying frauds, the banking industry can enhance its compliances, resulting in enhanced customer trust.

  • Using AI as a Differentiator

AI can be used as a key differentiator for gaining a competitive edge. Banks must identify their core business areas to make them intelligent and user-friendly at the earliest. The banking industry can implement its ideas through small prototypes and experiments by taking learning and adjusting for longer runs.

Concluding Remarks

AI is a significant technology disruptor for the banking industry with the intent to serve their customers in a better manner. By encashing on digitization & Artificial Intelligence will help the banks continue to offer relevant and several benefits through reduced operational costs & better customer relationships.