Impact of AI on the banking sector

Banking Industry CIO Perspectives | Tuesday 09 August 2022

AI-enabled tools allow the banking industry to grow rapidly by providing enhanced services and cybersecurity to their customers.

FREMONT, Calif.: The banking industry has evolved since the inclusion of innovative technologies such as artificial intelligence (AI), machine learning (ML), data analytics, and blockchain in various banking processes. AI has had a tremendous impact on the banking industry, enabling the banking industry to adopt better and innovative solutions to optimize its banking services and effectively build strong customer relationships. Business processes in banking are also being improved through the adoption of AI-based tools in areas such as customer relationship management, automated financial processes, and forecasting business trends and outcomes.

Let’s take a look at the different applications of AI in banking:

Enriched customer experience: Banking is a customer-centric business that relies heavily on customer relationships and engagement. AI enables banks to build strong relationships with their customers by collecting and analyzing chat data from previous customers, studying customer reviews, providing them with transaction details and mini-statements, and by facilitating them with online banking services.

Realistic interactive interfaces like chatbots can immediately respond to customer queries, saving banks time and money. These cognitive devices help banks increase their efficiency and accuracy in delivering information to their valued customers.

Robo-Advisors: Banks offer personalized solutions based on the health and financial situation of customers through robo-advisors. Personalized financial offers and plans help customers manage their situation easily and maintain their confidence in banks.

Predictive analysis: AI has replaced conventional methods of financial forecasting with its innovative and skilled data analysis models. It provides accurate and precise financial forecasts allowing banks to effectively make future operational and financial decisions. It can be applied to any financial sector, such as sales opportunities, operational data and revenue generation strategies.

Cyber ​​security: Technological innovations have also opened up new avenues for security breaches. The banking industry is highly dependent on robust cybersecurity for data protection and to prevent financial fraud due to several cyber frauds. AI plays a vital role in retrieving old flight data, analyzing it and providing robust solutions against cyber threats. AI also helps track security vulnerabilities and provide remediation within the organization.

AI will empower the banking industry with automated processes and cybersecurity protections, helping them grow and optimize banking services.

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