Advanced technology can bring an industry forward in ways that benefit its systems, shareholders, customers, and employees. And there’s nothing more exciting today than artificial intelligence (AI).

Artificial intelligence has been here for quite some time. The study of creating intelligent machines—robots that could replicate the cognitive capacities of the human mind, such as learning and problem-solving—was originally envisaged in 1955 as a branch of computer science. However, industries like the banking sector are just beginning to incorporate AI into their services and procedures.

Below are some of the most practical applications of artificial intelligence in banking.

Artificial Intelligence and Banking

Banks can use artificial intelligence to manage record-level, high-speed data and gain useful insights. Additionally, technologies like digital payments, AI bots, and biometric fraud detection systems contribute to high-quality services for a larger consumer base. Machine learning, natural language processing, expert systems, vision, speech, planning, robotics, and other technologies fall under the umbrella of artificial intelligence.

As a result of the COVID-19 epidemic, AI usage in many businesses has expanded. Since the pandemic swept the globe, AI’s potential value has skyrocketed. Now, more than ever, digital banking is preferred by many bank customers. The goal of AI adoption is to improve the efficiency and effectiveness of operations. As businesses automate their day-to-day operations and gain a better understanding of the COVID-19 databases, AI is becoming increasingly relevant.

AI’s Role in Efficient Customer Service

Chatbots have a significant return on investment in terms of cost reductions, making them one of the most widely deployed AI applications across industries, including banking. Most routinely used tasks—including balance enquiries, viewing micro statements and fund transfers—can be handled successfully by chatbots. This reduces the pressure on other channels like call centres, internet banking and so on.

AI and Automatic Banking Advice

How does automated guidance work in the financial services industry? By evaluating data supplied by customers as well as their financial history, an AI advisor tries to assess their financial health. The AI advisor will be able to provide appropriate investment suggestions in a certain product class, even down to a specific product or equity, based on this research and the client’s goals.

AI’s Capabilities for Predictive Analytics

General-purpose semantic and natural language applications as well as generally applicable predictive analytics are two of AI’s most prevalent use cases. AI can identify certain patterns and connections in data that traditional technology could not. These patterns can imply unrealised sales prospects, cross-sell chances or even operational data indicators—all of which could result in a direct revenue impact.

Using AI to Improve Cybersecurity

The banking industry is one of the primary victims of cyberattacks. By utilising data from previous threats, AI can greatly improve the effectiveness of cybersecurity systems. It also achieves such improvement by understanding patterns and signs that appear unrelated to the assaults. Apart from mitigating external risks, AI can also detect internal dangers or breaches and recommend corrective steps, preventing data theft or abuse.

Credit Score Checking Made Easy through AI

By evaluating data from a variety of standard and non-traditional data sources, AI can assist alternative lenders in determining a client’s creditworthiness. This enables lenders to create creative lending systems that are backed by a strong credit scoring model, even for persons with a low credit history.

Conclusion

Across the globe, organisations and governments are spending billions of dollars to fund AI research and pilot initiatives aimed at tackling real-world challenges that existing technology cannot solve. In comparison to what the internet did over the last two decades, AI is projected to have a massive impact on almost every sector. And the banking industry is quickly getting familiar with the advances artificial intelligence can do to its many services.

If you’re looking for specialists in banking solutions or business process re-engineering solutions, Informatics can cater to your specific needs. We focus on custom software development but also specialise in infrastructure solutions and services. With our years of experience and knowledge in the industry, you know you’re in good hands. Book a consultation with us today!

Written by Daniele Paoletti