Over several decades, banks have continually adopted the latest technological innovations to offer seamless customer experiences. It’s no surprise that retail and corporate banks are increasingly adopting Artificial Intelligence (AI) to help in a variety of ways. From fraud detection to quick credit risk assessment, AI can enhance the precision, speed, and effectiveness of human efforts. All this translates to reduced costs, tremendous customer experiences, and an increase in revenue. In this blog, we’ll take you through the ways in which AI can benefit your banking operations.
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A study co-sponsored by EY shows that 85% of senior executives in the financial services industry globally have already implemented AI within their organizations, and expect to use AI for new use cases in the coming years.
Seamless Customer Experiences
AI develops a better understanding of customer behaviorbased on past interactions. This enables you to offer personalized financial products and services.
AI combats fraudulent transactions and improves compliance. By using AI, you can identify fraudulent banking transactions based on inconsistencies in customer behavior patterns.
Quick Credit Risk Assessment
AI-driven models are capable of facilitating immediate assessments for customers’ credit risk evaluation. When a customer applies for a loan, you can use AI to processes the customer’s data and give them faster access to credit.
Conversational AI (Chatbots)
An aspect of AI that’s redefining customer engagement is conversational AI. You can use chatbots — the AI-enabled conversational interfaces — to handle compelling conversations with customers on behalf of the bank, at low costs. As per a Global Banking & Finance Review report , the integration of conversational AI will be the next banking interface.
Robotic Process Automation (RPA)
By using AI, you can apply Robotic Process Automation (RPA) to automate a variety of costly manual and error-prone banking services. AI can automate about 80% of repetitive work processes — reducing costs and providing accurate results.
According to a Business Insider Intelligence report, the aggregate potential cost savings for banks from AI applications is estimated at US $447 billion by 2023.
As AI technologies become more accessible and affordable, AI-based solutions will be fundamental to the next wave of banking innovation.As per a McKinsey report , AI-based banks of the future will innovate rapidly — launching new features in days or weeks, instead of months. AI will also make the whole process of automation intelligent enough to combat fraud and competition from FinTech players.
The adoption of AI in retail and corporate banking is continuing to transform companies in the industry. Banks that use AI increase their return on investment (ROI) while providing great value to customers. AI uncovers previously unrealized opportunities based on the improved ability to process and generate insights from vast amounts of data. Banks that fail to make AI central to their core strategy and operations risk being outperformed by competitors and being deserted by customers.
What has driven the recent growth in the adoption of AI is how accessible and affordable it has become. To implement transformation technology such as AI, you need to get hold of the right team with the right expertise. Fortunately, Winjit Technologies can help you with your AI journey.Winjit’s stand-alone application,PredictSense, combined with your domain knowledge is all you need to get started. Contact us today, and we’ll offer you the best AI solution that suits your needs.