The Growing Importance of AI in Banking

Every industry has turned digital today. All services now fit right into our palms and are just a click away from us. The banking sector has especially witnessed tremendous growth with the advent of digital services and is currently one of the fastest-growing industries online.

The next big change being anticipated in banking is the use of Artificial Intelligence (AI). There has been a lot of speculation regarding the merger of banking with AI technology. While some people are concerned about the potential of AI to cut down countless number of jobs, others are anticipating smarter and more secure banking with AI.

Potential of AI in banking

AI has already proved its potential in a number of other industries and is slowly but surely becoming an integral part of banking and financial institutions as well. Some big names in banking are already implementing AI technology to their work.

AI is currently being used only to perform repetitive work, like analysing legal documents, responding to data requests from external auditors, and correcting data and formatting mistakes in fund transfer requests.

Attempts are being made, however, to utilize the potential of these AI systems to bring about bigger changes in the banking sector. For instance, AI combined with machine learning can be used for risk mitigation. These systems can reduce the risk of financial cybercrimes by using advanced fraud detection.

AI can also be used to aid customer service in banking. AI can gather data from a customer’s profile or app usage and can provide relevant information or introduce new schemes and services with the help of machine learning. Banks can even provide wealth management services online by integrating AI with banking apps.

Advantages of AI in banking

First and foremost, AI will substantially reduce the workload on bankers. Once AI is introduced into the online banking system, quite a few repetitive tasks will no longer require human intervention. The only human input would perhaps involve training the AI system.

In addition, AI can be used to collect and process useful data belonging to users in order to improve the overall banking experience. AI can even help in risk management by analysing relevant historical data of a prospective borrower and preventing fraudulent transactions. This is done by detecting any suspicious activity in a customer’s account.

The advent of AI in the banking sector is definitely a welcome change and has given rise to smarter and more efficient banking.

For more information on how AI can work alongside your customer service function, contact us on [email protected]