Artificial Intelligence in Banking Reshaping the Customer Experience

access_time January 2, 2020
by   TechmavenitAdmin
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Artificial Intelligence technology in banking is being assiduously employed by most major banks as it brings in a host of benefits for both the banks and customers. The availability of data, open source software, cloud computing, and fast processing speeds are contributing to the widespread adoption of AI technology in the banking industry. As per the “Accenture Technology Vision 2017” report, artificial intelligence will become the primary way banks interact with their customers within the next three years. This report was prepared after Accenture surveyed more than 600 top bankers and consulted tech industry experts and academics. The adoption of artificial intelligence technology by banks and financial institutions is presently confined to the areas of predictive analytics, online behavior, voice, text and image recognition, recommendation engines etc. Banks increasingly realize that using artificial intelligence technology will enhance the customer experience and help stay in tune with technology advancements. Let us now go through some of the major benefits that banks and financial institutions have derived due to employing artificial intelligence technology in their operations. Productivity Increase Artificial intelligence has enhanced the productivity levels of banks and financial institutions. AI seeks to confine human labor to tasks that require creativity and innovation and leave jobs that are repetitive in nature to intelligent machines. This enhances productivity levels and cuts down wasteful expenditure. Robots will soon automate 80% of repetitive tasks currently being done by people and increase productivity levels. Research by Vanson Bourne has shown that organizations that adopt AI technologies expect their revenues to increase by 39% and costs to drop by 37% by 2020- a great increase in productivity levels. Voice Assisted Banking AI enables banks to adopt voice assisted banking practices. Customers only need to issue voice commands and the intelligent machines will serve up their demands without the need to use a touch screen or press a button. The NLP- natural language processing technology can process queries and answer all information asked for by customers in addition to helping them connect with the several other banking services. Advising Personalized communications and advice using artificial intelligence technology can be provided to customers by robots. Such advice replaces the services offered by customer service executives. AI technology has reached a stage where robots are able to offer all wealth related advice that are presently being handled by customer service executives in banks and financial institutions. Fraud Detection Fraud detection was one of the primary aims of the use of artificial intelligence in banks. Artificial intelligence has not only managed to improve the monitoring processes but also respond in real time to all forms of fraud. It has reached a stage where it is able to read all the data inputs that help differentiate good transactions from bad and discern whether a customer is genuine or fraudster. Processing Volume Data Business enterprises are flooded with vast amount of data on a daily basis. This vast data is collected, analyzed and leveraged to make business decisions that will help companies run operations more profitably. Managers are able to make more informed decisions based on this crucial data input. Artificial intelligence helps enterprises collect this data more efficiently, analyze it better and use it to drive company’s commercial growth Personalized Reminders Banks and financial institutions use artificial intelligence mechanism to send personal reminders regarding monthly loan repayments, pending bill settlements etc. This will help in redeploying human resources to areas  that require more innovation and creativity.  

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