Transforming Banking with Artificial Intelligence

The use of non-branch banking solutions has increased dramatically and especially in COVID times.  Before COVID-19, digital transformation was but a plan on paper, with only 15% of the major banks digitally transforming while for most banks and financial institutions things changed after the pandemic.

According to a recent survey by J.D. Power, only 46% of consumers will go back to “banking as usual.” The biggest change will be in the increased use of mobile banking (20%), increased use of online banking (17%), and decreased uses of branches (10%).

35% of consumers stated that they had increased the use of online banking (laptop or PC) since the COVID-19 crisis, with 17% stating they have used this capability much more.

Banks, credit unions, and financial institutions must use this time of disruption to consider reinventing themselves during this time of the pandemic. This is the right time to use data, AI, and technology to impact innovation and the digital delivery of services and solutions. Improved use of data and advanced analytics can provide meaningful insights that can improve customer engagement and experiences, streamline financial operations, and be a driver for digital transformation.

AI has remodeled banking vastly and can still do provided we tend to harness it properly. AI is empowering Banking and Financial institutions in fraud detection, credit risk scoring, Anti-money laundering (AML), and churn prediction.  BMO is the first Canadian bank where customers use mobile devices to open bank accounts. The Royal Bank of Canada provides a dynamic experience to employees from their first day on the job.

Customer support and the front workplace of banks are already chatbot enabled. Further, with the support of supported past interactions, AI develops a much better understanding of consumers and their behavior. Every client would favor a special methodology for treating their finances. With  AI, banks will customize monetary products and services by adding customized options and intuitive interactions to deliver meaningful client engagement and build sturdy relationships with their customers.

With its power to predict future eventualities by analyzing past behaviors, AI helps banks predict future outcomes and trends. This helps banks to spot anti-money wash patterns and create client recommendations. cash launderers, through a series of actions, portray that the supply of their hot cash is legal. With its power of Machine Learning, AI identifies these hidden actions and helps save millions for banks.  AI is additionally in a position to find suspicious information patterns among whopping volumes of information to hold out fraud management. With increasing online banking facilities this can be of utmost required.  Further, with its key recommendation engines, AI studies the past to predict the future behavior of information points that help banks to successfully up-sell and cross-sell their products.

About 32% of financial service providers are already using AI technologies like Predictive Analytics, Voice Recognition, among others. (Source: Wipro).  AI is integral to the bank’s processes and operations and keeps evolving and innovating with time.  AI can alter banks to leverage human and machine capabilities optimally to drive operational and price efficiencies, and deliver customized services. AI won’t solely empower banks by automating its data personnel, it’ll conjointly create the full method of automation intelligent enough to try to do away with cyber risks, stay in the competition, predict patterns and provide recommendations. Amazon has generated 35 percent of its revenue from its recommendation engine.3 Netflix saved $1 billion in customer retention using its recommendation engine.3 C

Conversational AI (CAI) systems can be rapidly deployed to give a service boost and better decision making during and after challenging times. Many banks have adopted CAI based processes with the use of chatbots. HSBC introduced the digital financial assistant Amy while Bank of America’s AI-powered digital assistant, Erica, has more than ten million users and completed 100 million client requests in the first 18 months since its introduction.  Banks can engage customers with two-way communication with the use of a chatbot or an interactive assistant powered by AI to intelligently respond to their queries other than routine questions to gain a competitive edge.  By adopting AI, leaders within the banking sector are already taking actions with due diligence to reap these advantages.

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