The Banking System in Bytes

Banking is one of the oldest and most traditional businesses in the world and yet one of the fastest in adopting new technologies. Banking began transcending from boxes to bytes as early as the post-war era. The 1960s were a lucrative period for banks as they adopted cards and ATMs, eventually moving on to digital networks in the early 1980s as the internet was emerging.

Today, banks are heavily reliant on technology, and new-age digital solutions have earned their place at the side of the greatest economic institutions that civilization has offered. Digital infrastructure now powers everything from transfers to settlements for banks, cutting across geographic and political boundaries.

The sector is now on the verge of integrating artificial intelligence (AI) systems into the banking infrastructure, and here we examine how the advent of AI will influence the future of the banking sector with a focus on digital transactions.

Transactions need AI

Bank transactions are meticulous functions that require careful observations before execution and depend on high levels of precision. Computers have enabled banks to virtually remove all margin for error through precision programming, eliminating human factors that were limitations to the system’s need for accuracy.

Artificial intelligence has now evolved to the point where functions of bankers can be replaced to further mitigate the risk of inaccuracies in authentication, inquiries, and payments. Highly complex operations that relied on human capabilities can now be entrusted to well-founded permanent systems. These smart systems rely on intelligence cultivated out of characteristics that are anchored into the structure of the solution.

Banking with Transactional Assistants

A transactional assistant is an unerring AI solution that can be deployed to perform various and simultaneous functions. A transaction assistant or transaction administrative assistant is an intuitive tool enabling banking institutions to create human-like transactional experiences for users.

Transaction assistants are essentially chatbots that leverage conversational AI technologies to coordinate transactions for users over the internet while managing back-end procedures in real-time. The virtual transaction coordinator can then be programmed to assimilate banking APIs and mechanisms that capacitate digital systems to authenticate transactions, send and receive balance inquiry requests and even perform intricate functions such as bill payments.

Transactional Security with AI

Security is indispensable to the banking sector; however, deploying a human talent pool large enough to analyze all banking activity in real-time to identify threats is practically impossible. AI can be deployed within the banking infrastructure, helping banks identity and neutralize threats as and when they appear.

AI has the ability to be programmed to analyze, identify and report suspicious activity within banks through a centralized system using pre-defined parameters that can be used to filter out criminal or mala fide activities. Through interpretation of the criterion mentioned in the program of an AI tool, it can help prevent fraud, data breach, and even theft.

Consumer Experience with AI

Banks engage with nearly every household in society, and unsurprisingly human talent alone is incapable of delivering on services expected from banks. The amount of information that banks generate cannot be consumed by a workforce, and this is where AI systems help banks perform without distress.

Tools developed through AI can account for capabilities otherwise unachievable, and consumer satisfaction can be developed without requiring human assistance. For instance, using an AI voice assistant to help customers understand products on offer better or perhaps deploying AI chatbots in banking institutions to facilitate transactions through the use of conversational forms.

Value with AI

Banks work on thin margins and deal with the volatility of markets while managing the cost of operations which is often a limiting factor to scale and profitability. Banks perform tasks that require endless work hours and a large pool of resources, often paying an opportunity cost. AI solutions help banks automate operations, shifting the focus of resources in a direction that can yield high value.

AI also helps improve retention and conversion rates for banks through interactive customer service tools that prevent drop-offs by ensuring superior consumer experiences, further supplementing revenue growth.

Banking with AI

Banks already leveraged technology and went digital as soon as they could; however, a new frontier approaches banks that promises unparalleled efficiency and accuracy that can help mitigate risk and prepare for contingencies through a data-assisted approach. AI in digital banking is bringing excellence through systems that are capable of learning and not limited by fatigue. Through advanced integrations, AI can be used to enhance the banking experience for both industry and consumer.

We at Interface work with exciting new AI solutions tailored for financial institutions. Our solutions help banks, credit unions, and other financial enterprises eliminate inefficiencies and accommodate automation capabilities into their infrastructure to improve productivity and performance.

Visit us as interface.ai to know more about our products.