As a revolutionary transformation in the banking industry takes place, banks and financial institutions are turning to Artificial Intelligence to redefine their products, processes and the strategies - disrupting the industry and adding value and ROI to both traditional banks and emerging fintech solutions.
The financial services industry is depending on AI to drive banking forward into the new digital age and implementing it into every facet of banking from customer facing interaction to the back office to analytics and projections.
Artificial Intelligence processes enormous amount of data very quickly, allowing financial institutions to provide improved, enhance, targeted and personalized service to account holders and investors. Chatbots are becoming a common way to interact with customers, and real time notifications and mobile banking provide the convenience of a branch without the limitations of brick and mortar, 9-5 locations. Fingerprint ID and facial or voice recognition can further increase security and convenience (ATMs may soon provide facial recognition access.)
Risk and Credit Assessment
AI also provides rapid insight and increased accuracy when gauging risks for personal loans, auto loans, or mortgage approvals. Credit assessment can be swiftly accomplished, a customer profile built and amended with any new data, and a recommendation made as to the level of risk. Financial investments can likewise be analyzed and assigned levels of risk.
Smart Wallet and Digital Currency
AI enabled smart wallets can provide for alerts to be sent to a customer directly to highlight the need for a money deposit or transfer, confirm a payment, and even provide conversion rates and cryptocurrency information in real time. Smart wallets can also simplify online only banking for formerly unbanked or underbanked individuals, and steer new banking customers in in the direction of responsible spending habits.
AI can detect if a customer is preparing to switch their products or services, and trigger the offering of an upgrade, or a different product or service to help retain the customer by incentivizing their account. Feedback can also be gathered and customer actions or inactions analyzed to provide a deeper understanding of what makes them stay with their current bank or leave to seek new financial assistance.
AI will continue to disrupt the world of banking and finance, and traditional banks must continually pursue the latest advances in order to withstand the onslaught of competition being presented by fintech.