Artificial Intelligence or commonly known as AI is such an innovative technological advancement that has spread its magic in almost every industry. For example, online gambling, education, business intelligence, manufacturing, healthcare, cybersecurity, cloud computing, and retail. It is a very broad term that has drastically changed the way a specific industry works on an everyday and long-term basis. It is hard to find the industry that remains untouched by AI. Just like all other fields, the banking and finance sector is also experiencing a tremendous transformation by artificial intelligence.
Positive Changes AI Is Bringing In The Banking Industry
The finance and banking sector have become the active adapter of artificial intelligence over the last few years. The worldwide investment in this technology has reached $41.1 billion in the year 2018. According to the reports, global spending in AI is expected to touch $300 billion by 2030. This rapid growth is proof that AI has become the most useful and efficient source for implementation in the finance sector. But the key here is to find the ways artificial intelligence is transforming the finance and banking industry.
Banks are widely using chatbots for increased efficiency of services and reduced expenditure on human resource capital. According to the sources, chatbots will be improved in the coming years to announce new offers for the customers.
Intelligent Character Recognition System
This system is widely used by foreign banks to identify and obtain vital information from previous loan applications, lease agreements and put it in the central database for easier and quick access by everyone.
Improved Customer Experience
With the help of artificial intelligence, finance institutions can ensure a detailed and better understanding of their customers’ behavior and investment patterns. Based on the data pool of past customer experience, banks can customize their products and services with more personalized and improved features for better customer engagement.
How AI Can Benefit Banking & Finance Sector?
By facilitating a better understanding of customer’s behavior and enabling banks to customize the products and services, AI is providing many benefits in the finance industry. It ensures the fastest growth of business at a much rapid rate by offering the following advantages –
Financial institutions and businesses are creating precise predictive models by making the best use of DataRobot. These models ease the decision-making process of several things such as digital wealth management and blockchain just to name a few.
– Improved Security
The security measures have been improved by a significant percentage with AI that helps in credit card fraud prevention. AI-based fraud detection systems ensure the highest level of security by analyzing the customers’ buying behavior and location. This system will activate the advanced security mechanism if anything is not performed in the established spending pattern.
There is no room for risks in the banking industry no matter how small or big it is. Artificial Intelligence reduces the risk possibilities by identifying the latest trends, potential risks, preserving manpower, and ensuring accurate forecasts predictions.