The Emergence of AI In Finance and Banking Sectors

Starting from Machine Learning to Neural Networks, AI host plethora of technologies. AI is one of those terms that has hit multiple industries by storm and this time it's the banking sectors. Undeniably, AI is a broad term and has made its place in our day to day lives. Whether it's the Facebook or Instagram, the Maps or Google, AI embraces all. And by all, we mean all. AI is expected to grow more than what it is anticipated today. 

AI Will Stay Longer

AI as of now augments human work and help them to perform calculations faster, add value driven activities thereby making them more efficient. And all that AI has done or is currently doing is the result of the technological advancement. Machine Learning and Neural Language Processing are the two helping AI evolution.

The effect of AI is incredible. Deploying technology in humanitarian area propel countries to faucet life-threatening the area and explore plentitude of resources. Many times it so happens that few countries own pool of natural resources but owing to its presence in inaccessible zones hinder their exposure.

In such cases, AI has turned tables. Robots or virtual assistants help in outreaching such areas and leverage the wealth and productivity of the local community in any country.

But this was all about AI on a whole. The current banking sector is seen to incorporate traits and technological patterns that form the base of Fintech startups.

The global banking sector today takes all the necessary steps to stand by the pace of the digital world. Innovations using Data Science is the future of banking and finance sector. How this technology lays it impacts on the banking sector is our topic of discussion today.

Benefits Of Banking System

Digitization has moved the banking sector from piles of paper of PDF folders. They now innate strategy oriented and technology-centric ways to interact with users. This transformation deems the traditional banks as digital banks.

Let's have a quick look at what are the benefits of AI in the sector.

• Cost Reduction

AI is all about automating tasks. Shifting them from human-centric to technology-driven, AI speeds up the total process time and surprise humans with the induced changes cutting on the time required to prepare manual reports.

Several banks are already up with the technology with the incorporation of automated computers. Several bots are used to perform the task automatically, auto respond to the data request and format data request as required.

• Curb Associated Risk

Inducing automated machines help bank professional to cut down risk associated with loan underwriting, criminal risks, detect fraudulent acts, leverage the compliance quality and causes a decline in the operational risks. Additionally, AI betters the accuracy of producing documents and building transcripts. Along with this, banks also use AI to see through the potential threats a user has with respect to criminal activities.

• Boost Customer Service

One of the most prominent and much-anticipated benefits of incorporating AI in the finance and banking sector is improved the effectiveness of employee targeting customers. It becomes easy to reach out to users via cold emails and few others with the help of data analytics.

Using speed analytics bank professional can outreach users that seek human attention and therefore leverage sales. Several banks have incorporated solutions that segregate customers response in significant categories so that they can be effectively addressed and at the right time.

• Personalized Payments

AI is expected to provide a customized experience to users when it comes to initiating payments. AI-driven apps allow segment users choice and mirror the preferred choice of payment at the next payment window. This works by analyzing and assessing past experiences as exposed by the customer.

• Optimize Productivity

And the last in our list is the ability of AI to enhance the overall productivity. Providing users a personalized experience leverages customer experience and this has an impeccable impact on the overall economy. Banks can now have access to huge data reflecting users preferences and corresponding choices.

Automating back-end work has enhanced users experience and likewise the outcome. According to a research it is expected that the overall economy would rise by $1 trillion by the end of 2035. Seeing such a massive rise, nearly 36% of the total financial institutions have already delved into incorporating AI.

Applications Of AI in Banking & Finance

Undeniably, AI has a pool of opportunities for both the banks and the users to drive benefit from. Several banks have stepped into the era of the digital bank and here we list out the application of AI:

1. ATMs could use face recognition using advanced features of AI. Further, deep learning helps the detection of crimes and fraudulent activities.
   
   

2. Using digital methods for anomaly detection prevents money laundering activities.
   
   

3. Chatbots have been incorporated to provide an enhanced way to support customer and leverage the efficiency of customer interactions.
   
   

4. Robotic Process Automation includes various techniques that act as
   virtual assistants and help perform repetitive tasks automatically.
   
   

5. Using NLG, bank professionals are saved from the task of generating reports manually. Effective segregation and synthesizing huge data sets act as an add-on.

Summing up all that has been said, AI is all set to create a difference. From Robo advisors to AI driven chatbots, AI is helpful in providing users with value-driven services. Also, it has the ability to expand services beyond boundaries. Though this transformation voices reducing human resources, it will definitely lead to the evolution of a digitized world.

Author:

Vishal Virani is a Founder and CEO of Coruscate Solutions, a leading iPhone app development company. He enjoys writing about the vital role of mobile apps for different industries, custom web development and latest technology trends.