What makes AI so desirable in the BFSI sector? That many organizations are now vying towards implementing process automation in their daily processes? It obviously goes beyond benefits such as improved customer experience, better security, and saving operational costs. Out of all the financial sectors, Artificial Intelligence seems to have made the most progress in Banking. And this is validated with a high success rate achieved through AI applications in banking sector.
Evolution of AI in Banking
Cognitive applications of AI in banking have increased tremendously with the advent of Artificial Intelligence Technologies. The latest AI tech now promises a seamless customer experience. Many financial companies are embracing online platforms for ease of carrying out their work processes. Moreover, a post-pandemic world in 2021 also demands working remotely with the aid of electronic and online mediums as much as possible. Thus, using automation solutions powered by Artificial Intelligence seems like a logical way to usher in transformation in the financial sector, especially in banking.
When AI first made a foray into this industry, it only had a few basic uses, majorly dealing with responding to customer inquiries. However, with time AI applications in finance and banking have become magnified immensely. Check out below the following applications of AI that are gathering steam in 2021.
Detection of Fraud and Privacy Management
Starting with this new decade, AI in banking is making leaps in terms of fraud detection. The earlier methods that mostly involved manual detection were not much effective and created several false positives, further hampering efficiency. The new-age AI can correct these false positives with accurate identity verification, transaction verification, and account validation in the mid-office section. The Artificial Intelligence programs designed for this application mainly monitor account behavior and deploy a long set of security protocols necessary to authenticate financial transactions. Not only do anti-fraud processes help secure banking actions and streamlines their flow but also helps effectively manage privacy details as anonymously as possible.
Making Customer Actions Smarter in Banking
One of the key 2021 AI trends noticeable recently has been the prediction of customer reaction to challenges and situations using Artificial Intelligence programs. This is expected to find more footing in the latter half of the year as banking all over the globe has predominantly gone online. More and more programs are being developed by chief Fintech market players that can tap into customer actions, analyze their intentions, and make valuable predictions for faster banking activities. With such smart banking procedures fuelled by a growing interest from third-party developers, personal banking is expected to become much better in the future.
Automating Customer Enquiries and Demands
A prime front-office issue faced by employees working in the front office section of banks is dealing with millions of customers that bring their problems and expectations to the desk every day. It is true that responding to many of these actions has now been automated with the help of Intelligent Process Automation in banking. Thus, specifically designed products and services integrated with the banking infrastructure are tasked with addressing customers regarding their grievances, inquiries about accounts, loans, credit cards, policies, and many other banking services. However, as physical banking now involves minimal contact between a customer and a bank employee behind a desk, such issues are expected to be handled at a much higher level with the help of new products and AI-powered solutions. This is expected to minimize downtime faced by customers to get answers and also improve customer satisfaction with better problem-solving actions.
What the Future Holds for AI in Banking
Over the upcoming years, the potential carried by AI will immensely encourage banks at the local levels especially in developing nations and third-world countries to embrace banking automation. Be it keeping up with the competition or dealing with cyber-security risks and threats, machine capabilities are bound to develop with time. This could very well enable complete automation for the banking and financial industries in this decade.
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