Emerging applications of artificial intelligence in the banking industry
Artificial Intelligence, simply put, is the future, revolutionizing banking by the day.
Dr. W.A. Wijewardena, a former chairman of IBSL, once said: “Banks should subsume technology before technology subsumes them.”
While technology use in industries such as health is more profound, banks and financial institutions are finally embracing the trend. Big banks, realizing what a goldmine the venture is, what with it having the potential to cut their operating costs by 22% according to The Financial Brand, have gone ahead to invest in and employ artificial intelligence in many of the services they offer.
The once rigid, branch and paper-based industry are now digitalized and network-based. AI has been used to make banking more convenient and efficient, reduce fraud, modernized accounting, redefine banking among many other perks and below is how.
Better Customer Service Thanks To Bots
When you call or text your bank for help, you may not know it but chances are you are talking to a robot. Chatbots or voice bots are customer service representatives powered by algorithms. They sound human, act human and are very capable of attending to all your needs just faster than a human would.
Some like Pepper can even recognize human emotions when conversing with a client and adapt accordingly. Over 2000 banks have invested in bots including Wells Fargo, Bank of America and SoftBank. Chatbots are said to save financial institutions about $450 billion. They should, however, be used together with humans not to entirely replace them.
Increased Convenience Through Digital Voice Assistants and Process Optimization
Virtual assistants, the likes of Alexa and Siri, are also being used in banking. Certain banks, like UBS, a Swiss bank, have partnered with Amazon Echo powered speakers to form an ‘Ask UBS’ feature. Through this feature, its clients can get definitions of financial jargon, advice on how to invest and better manage their money and analysis of global financial markets.
This means you can get all the information you need at the comfort of your home and carry on with appropriate transactions via online banking. Robots can also process high volumes of IT requests such as password resets within a short period of time. This creates a better and more convenient customer experience.
Heightened Security Thanks To Biometric Systems
Security is of extreme importance when it comes to banks and financial institutions. Cybercrime costs the global economy $600 billion annually according to McAfee. With theft and fraud cases increasing by the day, banks have embraced the use of biometric systems to try to eliminate this problem.
Instead of or in addition to pins and passwords, they use Artificial Intelligence, say, facial recognition, voice precognition, fingerprints, or cornea patterns to verify one’s identity before granting access to their account.
Halifax, a wristband that detects your unique heartbeat, has also been put in play for the same. This means only you can access your account or make any transactions. Additionally, content intelligence is now being used to curb fraud. Its ability to sift through massive amounts of data, draw patterns and detect anything suspicious helps in real-time fraud prevention. This has made banking personalized, discrete and secure.
Artificial Intelligence will save the banking industry 1 trillion by 2030. Increasing profits aside, it will also improve the quality of service banks offer their customers. Artificial Intelligence, simply put, is the future, revolutionizing banking by the day.