Artificial Intelligence is said to be the future of banking as it brings the power of advanced data analytics to combat fraudulent transactions and improve compliance. AI algorithms accomplish anti-money laundering activities in a few seconds, which otherwise take hours and days, added a report by Wipro.
The report further added that AI also helps the banks in managing huge volumes of data at record speed to derive valuable insights from it. Features such as AI bots, digital payment advisers, and biometric fraud detection mechanisms lead to a higher quality of services to a wider customer base.
According to an India ai report IDC has predicted that the India AI software market will grow from USD 2,767.5 million in 2020 to USS 6,358.8 million in 2025, at a CAGR of 18.1 per cent.
“Application of AI within the banking industry has enabled us to offer more personalised and efficient customer service and the same has also helped to understand customers’ preference and expectation from banks,” said Amit Jaokar, CDO & CISO, NKGSB Bank.
Some common uses of AI in banks include improving customer experience through introducing chatbots and automated help desks. Automation not only helps banks to understand the customers fast and at deeper levels but also helps to respond to their concerns or issues rapidly. The use of AI and ML reduces the cost of customer interactions.
Further automation in the banking sector will certainly help in better business outcomes by trust, enabling reliability and cost-efficiency.
He further explained that with the help of AI and ML fraud transactions can be identified effortlessly and instantly will alert the customers as well as the banks. In the coming decade, AI will improve efficiency, services and productivity. In simple terms “AI and ML in the financial sector should be added to spot and stop the Fraud”. Deploying AI in the banking sector will enhance the capabilities of the compliance department, improve fraud detection and overall banking regulations.
The use of AI will reduce operational costs and risk in the coming years. Robotic process automation (RPA) is the ideal process that eliminates human intervention and removes the friction between digitalisation as well as complex processes involving multiple applications for the end-users.
“Personalised loans, credits and portfolios can be managed by Bot Advisors for clients. AI will help in risk assessment by determining how the borrower will pay back their loan amount; it will also help in streamlining tedious processes and greatly improve customer experience. Implementing AI will reduce less human intervention in monitoring the database,” added Jaokar.
He further pointed out that AI will open up new opportunities in loan and credit policies which will improve efficiency; moreover, it will help to satisfy the customers through smart credit processes.
Investment Automation has been enhanced with measurable results. It helps in saving costs and efficiency. This doesn’t simply just replace humans but eliminates repetitive work with high accuracy and faster processing, eventually this helps to mitigate any potential damages and enhance trust and greater customer satisfaction.