Artificial intelligence (AI) has come a long way since its mainstream integration in the early 1980s. While most people equate this technology to robots and other futuristic technology, AI’s uses stretch far beyond that. In fact, you’re most likely already immersed in it without even realising it — whether it’s through the apps on your phone or your own Google browser.
One industry that is certainly reaping the benefits of AI is none other than banking. Traditionally, the world of banking has had to deal with lots of paperwork and manual organisational tasks, but AI is now being used to streamline many of its processes and turn data into actionable insights.
So how else is AI changing banking?
In banking, digital transactions take place every second as customers transfer money, trade stocks, pay their bills, and more. If banks and customers aren’t careful, it could easily open up opportunities for theft, leaks, and other phishing schemes. For one, companies like Citi Ventures have begun investing in AI analysis tools to help detect fraudulent behaviour. On the other hand, there is also California-based Vectra, whose platform automates threat detection, helping to reveal hackers particularly targeting financial institutions. With 2019 shaping up to be the worst year for cybercrime yet, security is more important than ever.
24/7 Customer Service
Like most offices, brick-and-mortar banks typically operate within the traditional 9-to-5 windows. Fortunately, one of the biggest benefits to AI is convenience. Using chatbots and virtual assistants, there is always someone available to address customers’ urgent banking needs whatever time it is. In addition to answering enquiries and assisting transactions, chatbots are also good tools for directly sending personalised adverts, loan offers, and merchant services. That way, banking employees can spend more time performing meaningful tasks.
Banking is no longer just about crunching numbers – it’s about knowing how to give deeper meaning to them too. Maryville University’s feature on business analytics predicts a future driven by data, especially in the banking industry. After all, data is all about looking for trends, identifying opportunities, and reading complex information — all skills that are valuable to financial institutions. Banks can use this to create a more personalised experience for their customers, since it can read individual consumer data and monitor irregular patterns for protection. For example, Capital One’s AI assistant notifies its members if their card was charged twice for an expense or if they tipped an excessive amount at a restaurant. It’s these small, personalised details that keep consumers loyal.
For many years, most jobs in the financial industry were considered irreplaceable by AI due to the “high-level of critical thinking” it demands and fairly complex nature. But today, employees from Nasdaq estimate that 90,000 jobs in asset management may disappear by 2025, thanks to AI. Automating menial tasks could also save banks thousands of dollars, as well as reduce the costs and fees that consumers pay every year.
Services use technology to get ahead of their competition, and financial institutions are no different. That’s where AI comes in. Besides all the cutting-edge features we’ve discussed, AI can also be used in various creative ways. For example, to keep its auto loan business relevant, the Royal Bank of Canada is creating a forecasting tool for car dealers to predict demand for vehicle purchases based on customer data. As most banks offer the same services, this is something that helps them stand out from the rest.
AI is playing a vital role in the evolution of businesses and modern enterprises. Judging by the business trends even outside banking, the adoption of AI can only continue to grow from here.
5 Ways AI Is Changing Banking in 2019 & Beyond is written by Alicia Grant. Originally published on fernsoftware.com
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