Artificial Intelligence (AI) is a buzzword in every industry. But all of the advantages it offers, including faster data processing, pattern analysis, and the ability to trigger actions, come together in the banking sector. Here are three key ways artificial intelligence could change how banks reach out to wider audiences, even in areas with little to no access to banking.
Predictive analysis means banks can evaluate risk early on
Manual risk analysis, even for finance, relied on a few logical determinants. Credit scores, previous banking history, and pre-existing loans all tell a basic story about someone’s suitability for certain loan programs. But sometimes that information isn’t available. In areas with little to no access to banking and little in the way of standardised loan histories, there’s no data to analyse. Even when some or all of those factors are available from past records, it still doesn’t tell a complete story. Dozens of seemingly unrelated factors and trends can work together to give banks a more refined analysis before the application process begins or before payments start to slow. More and more banks are turning to artificial intelligence, and the systems early adopted tools are using will make future generations of technology stronger.
AI helps prevent risks to cybersecurity
Customers with outstanding loans aren’t the only risks that need to be managed. How customers use and operate their accounts can also be an invitation for theft, data leaks, and phishing schemes. Citi Ventures is investing in AI analysis tools that can even detect fraudulent behaviour patterns. AI can use extensive records of past behaviours, both those of a specific individual and those for general behavioural trends in different circumstances, to evaluate when more security checks are needed. Online authentication and ease of use need to strike a balance between convenience and security. AI can tell when security needs to be a more prominent priority.
AI tools can give customers the advice and education they need
Just like inbound marketing focuses on creating content for specific customer profiles and subscribers, banks can use AI to give customers targeted courses and financial advice. Chatbots that answer customer questions online, like HDFC’s chatbot Eva, also make specific banking tasks easier. Educating customers in bite-sized pieces of information that relate to their current financial situations doesn’t just help them. When bank customers know how to invest, save, and use financial resources, that reduces your risk, too.
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