How AI In banking is taking over and what to do about it

Artificial Intelligence (AI) is the future of the banking industry. AI has disrupted various industries, and banking is one of those in which the maximum potential is found. Research  on AI in banking says that AI in banking will save the banking industry more than $1 trillion by 2030.

AI in banking industry: The future is here

Present-day banking is a lot different from your traditional banking. There is a whole new  range of banking products and financial services that can be availed by  customers. We have been introduced to contemporary banking services such as  money-transfer apps to mobile payments, trading, and investments to  crowdfunding and peer-to-peer lending. The present generation wants all these  services at a lightning fast speed – without sacrificing simplicity,  security and great user experience.

In order to make  customers happy with the best and fastest service, banks are introducing AI in  their banking processing. AI helps banks in many different aspects of the  banking process. Here are a few ways how AI can extend a helping hand towards  the banking industry.

5 ways AI is making banking  easier

Credit Decisions with AI

Credit decisions  are one of the crucial decisions in the banking sector. AI can help banks by  providing a faster, more accurate assessment of a potential borrower. Using AI  for credit assessment is a less expensive and better medium to check the  creditworthiness of customers as AI can check a wider variety of factors,  which leads to a better-informed, data-backed decision. AI helps banks/lenders  to differentiate between high default risk applicants and low risk associated  loan applicants.

Banks using AI in credit decisions can gain better results as credit risk is minimized to a great extent when AI checks creditworthiness. A United States based Automobile lending company has reported that they have cut losses by 23% annually after implementing AI in credit decisions.

Prevent frauds

Security is the other  name of banking. Banks must be bankable so that security and swift  transactions can be expected. AI can be programmed to detect frauds in the  transactions with the help of predefined rules. Moreover, any suspicious  activity in a customer’s account can be tracked based on behavior analysis.

AI in banking is  also helpful in protecting personal data of the customer. AI in banking can be  used as a shield against cyber crimes which have become frequent in the past  few years. In banking, AI has a vast scope in cyber security. AI-powered mobile  apps can address fraudulent activities in customers accounts; making banking a  lot more secure and seamless.

24X7 Customer Service

Customer service  is at the heart of the banking industry. The AI smart assistants can help  banks by providing effective and personalized customer care 24 X 7 in both text  and voice platforms.

AI Smart assistants can be used as answering machines, serving several customers at a  time. Customers also gain better satisfaction as they don’t need to wait even  for a minute to get their queries solved.

There are a number  of functions that can easily be handled by AI assistants. Direct and basic  operations, including opening or closing an account, transfer of funds,  requesting checkbooks, cancelling cheques, requesting ATM cards and so on. Most of  the simple banking functions can be done with AI assistants and if there is  any customer issue that your AI assistants cannot resolve, it redirects the  call or message to the respective department.

Financial Advisory Services

AI can also be a  part of the advisory committee of the bank. It is a revolutionary invention in  the field of baking, a prime example of collaboration between man and machine;  called a bionic advisory.

Neither man nor  machine alone can make the best banking decisions individually. The best  decisions require predictive analysis done by machines along with human  insight to take the best banking decision and step forward.

Trading and Investment

AI plays a vital  role in investment companies. Investment companies rely on computers and data  scientists to determine the future of the market, spot trends and invest accordingly.

The predictive analysis feature of AI is used to predict the trends in the market. Machines  can predict markets in a better way as a huge amount of past data can be  processed in a short while. AI-enabled machines are trained to observe patterns  in past data and predict how these patterns might repeat in the future.

AI helps when it  comes to suggesting in investment plans, this is done depending on the risk  appetite of an individual.

This disruptive and  dynamic technology can also suggest individuals on when to buy, hold and sell  stocks. Even people with a lower risk appetite can set AI in such a way that  he/she can receive alerts for when the market is expected to fall. Such alerts  help investors to make decisions about whether to stay invested in the market  or to move out.

AI and Banking is all set to go  far together

The banking  industry has already started to adapt AI in various aspects. AI has become an  inseparable part of the leading banks like SBI, Yes Bank and TDECU. Introducing AI has helped these banks  and credit unions to achieve tremendous growth in revenue, while cutting down  the operational cost.

The AI assistants  of all three banks are created and designed by interface.ai.

We, at interface, build AI-powered Intelligent Virtual Assistants that can help banks in different ways and help bring closer banking and AI. We build new  age self-serve channels with Voice and Text compatibility to simplify customer  experience with AI-powered Intelligent Virtual Assistants that encourage use of AI in financial services.

Be an industry  leader for the banking industry by introducing AI. Request for a  demo here and make the AI be your partner in your success  journey.