Artificial intelligence (AI) is a branch of computer science that deals with the creation of human-like and intelligent machines. This technology is shaping lots of industries and the banking industry seems to be one of the most beneficial. Banking industry leaders are already considering the use of artificial intelligence to create solutions for various problems plaguing the industry. In reality, Voice Recognition, Predictive Analytics, and other AI technologies are currently being explored by FinTech players as well as financial institutions to improve banking services.
By 2030, artificial intelligence would have helped the banking industry to save over $1 trillion. Not only will this advanced technology help the banking industry to save lots of money, but it will also shape the industry in a lot of ways. Consider the following effects of artificial intelligence on the banking industry:
For many years, one of the most prominent concerns of banking industry players and customers is financial fraud. The financial losses from many financial fraudulent activities often have severe effects on the affected people. Nevertheless, AI is already changing this situation as it detects and reduces the occurrence of financial frauds. Also, this technology makes it possible for financial institutions to provide quick, seamless, and effective responses to any detected data and security breaches.
Cognitive Process Automation
Process automation has already taken off, but it still promises to develop into what is known as cognitive process automation in the next few years. Cognitive process automation allows banking institutions to automate several error-prone and highly demanding services. Artificial intelligence will be at the forefront of the integration of this technology across various platforms. Similarly, AI will help financial institutions to reduce business running costs, improve timely delivery of many services, and get better returns on their investments.
Artificial intelligence will equip banking institutions with chatbots which are super-intelligent bots that can read and understand emotions and context of text chat. The chatbots will have the cognitive ability to provide smart and appropriate responses to the inquiries of bank customers. With the help of these bots, the efficiency, reliability, and timeliness of the customer services of financial institutions will improve significantly.
The invention of AI has delivered digital wallets to the world of finance. Although digital wallets are still at their budding stage, they have shown what they are capable of doing when it comes to promoting digital money. As time goes on, customers will get a seamless experience when carrying out cashless transactions, buying items online and executing other tasks.
Improved Customer Experience
In addition to the other benefits of AI in the banking industry, there will be a better understanding of the behaviors and needs of the customers. Therefore, financial institutions will be able to serve these customers better and have long-lasting relationships with them. All these will cumulate into an improved customer experience.
In conclusion, it may take a while before artificial intelligence takes its course in the banking industry; however, it is certain that this technology will offer several benefits to the industry.