Article

Ana-Maria Sanders
Ana-Maria Sanders 10 January 2020

How Artificial Intelligence Will Shape The Banking Industry

Artificial intelligence is known as a rising star in the world of technology. This article will discuss how artificial intelligence affects the banking industry as well as its scope and application.

Benefits of AI in Banking

Customer Satisfaction

The primary factor in any bank is customer satisfaction, where the company provides an efficient and personalised service to every client. The use of AI helps to increase revenue, and results in a better customer relationship and faster decision-making. AI not only ensures customer happiness but also facilitates systematic maintenance of the back office.

Chatbots

The term bot is a short version of robot; this program through automated chat follows a predetermined path or runs automatically. The chatbot is a channel of using AI in a robotics banking form. This is highly beneficial to the banking industry since individuals can’t be physically present all the time. Bots can be used when the bank is closed and or on the weekend or later hours. Anytime and anywhere, money is always required; this is where chatbots become handy as they can be accessed 24/7.

Detecting Fraud

One of the most fearful issues in the banking industry is fraud where affected people find it hard to recover or cope up with financial losses. Yet, the great news is that the banking authorities can easily handle the incident is a more organised manner as long as the fraud notice reaches the bank’s attention immediately. This can help the banks in building customers’ trust and loyalty.

The Future of Artificial Intelligence in the Banking industry

Everyday, the improvement in the field of technology is getting smarter, providing the assurance that AI will become even stronger in helping clients to undertake a more secure banking experience. Here are some avenues where artificial intelligence can dominate in the future.

Digitization

Using the technology’s support in transforming data in a digital format is called digitization. This has a lot of advantages in the industry of banking:

  • Enhances the experience of the customers.
  • Saves time both the bank and the customers.
  • Reduces the human error.
  • Build loyal and strong clients.
  • Helps the cash flow movement (inflow and outflow).
  • Deals with transactions that are cashless anytime anywhere.

 Application of AI in Banking

When AI is being installed in banks, systems need to examine the database, in order to mak it easier for the bank to forecast, recommend and execute customised financial advice to clients. With these applications, it is feasible to gather information quicly on financial methods, the future progress of the markets and the loan rates like when a business is involved in blockchain lending.

Personalised Financial Guidance

The use of AI in the area of finance lies in the ability to make easy and quick decisions, giving information that is up to date on the present structure of the market as well as provide suggestions on the bonds and stocks where users can invest.

Digital Wallets

The innovation of digital wallets has boosted digital money to a higher level. The benefits of these wallets are the ability to let the customers purchase items online through their computer and or mobile phone through cashless forms of transactions.

IVRS or Interactive Voice Response Systems

This automated voice system assists in routing calls and interacting with customers to the right banking departments. At the same time, it helps in addressing certain questions. This feature ensures the customer has a pleasant experience with their bank.

Conclusion

To conclude, the popularity of artificial intelligence is gaining ground day-by-day and the banks are continually implementing and exploring this tool by modifying the way it that it assists customers.

AI has a bright future in the banking sector, making it easier for customers to transact anytime and anywhere without the need to queue up at the bank. Hence, the goal of AI is to deliver a  high quality experience through personaliwed customer satisfaction and time-saving service efficiency.

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