Artificial intelligence is the trending technology for almost all the companies around the world or we can say AI is the rising star. Now, if artificial intelligence is the hot subject and people around the world are talking about it. In this article we will discuss about how artificial intelligence is especially used in the banking sector, the application and the scope of artificial intelligence in banking and finance sector.
Banks play vital role in the development of financial life of the modern society. In today’s world economy, it handles cash, credits and other financial transactions. Banks help customers or motivates them to save money and earn interest for a safe future.
Since, the banking industry plays an important role to maintains or in development of world's economy. For each and every financial transaction it is important to maintain proper documentation and to do this banks firstly use computers, where they have detailed record of the customers in their database.
There are various channels that banks use for their operations are through ATM’s, mails, telephone banking, online banking and mobile banking and the entire banking system is connected so well that each and every transaction can be tracked and any exchange of information can be done just by connecting to these networks. This is possible because of Artificial Intelligence.
The primary aim of having Artificial Intelligence in the banking industry is to ensure that the customers are happy with the services provided by the banks and help the customers to do more expectations from the banks.
Benefits of Artificial Intelligence in Banking :
Customer Satisfaction :
Customer satisfaction is the first most important factor of any bank. The banks provides more efficient services to each and every individual customer. Artificial intelligence helps in increasing revenue, faster decision making and having a good relationship with the customers. Having Artificial intelligence not only ensures that the customers are happy with services provided through banks but it also helps the banks to maintain and have a well organized back office.
Chatbots :
Chatbot is an automated chat program that is run automatically or follows a pre-determined path. It is a way of using Artificial Intelligence in banking by means of robotics. This tool is very helpful in the banking industry because people are busy in their daily jobs that it becomes very difficult for them to be physically present at the bank. Chatbots are a smart way of providing efficient customer service to the customers and it helps customers to know their transaction details and also additional services that they are eligible to receive. By using this chatbots, banks are able to understand each customer’s requirements and give them the right offers or even reward them.
Fraud Detection :
Banking related fraud is one of the concerns among the people and the banking industry. Whenever there is a fraud transaction noticed in a bank statement and if it is immediately brought to the attention of the bank, then the bank authorities immediately take necessary action to handle the incident in a very organized manner with this smarter Artificial Intelligence, banks are able to detect fraud and protect security breaches.
Application of AI in Banking :
Artificial intelligence is the future of banking because it brings the power of sophisticated data analytics to deal with fraudulent transactions and aware customers about it.
AI allows banks to manage record-level high-speed data. Features such as AI bots, digital payment advisors and biometric fraud detection systems lead to high-quality services for the customers. All these increased revenues, reduce costs and increase profits.
Improved Customer Experience:
AI builds a better understanding of customers and their behavior. It enables banks to customize financial products and services by adding personalized features and intuitive interactions to provide meaningful customer engagement and establish strong relationships with their customers.
Predicting Future Results and Trends:
AI helps banks to predict future outcomes and trends by analyzing past behaviors, with the power to predict future scenarios. This allows banks to detect frauds and make customer recommendations. With the power of machine learning and knowledge, AI can identify these hidden actions and save millions for banks. Similarly, AI can detect suspicious data patterns in enormous data to help manage fraud.
Personalized Financial Guidance:
Artificial Intelligence in finance will help customers to make easy and quick financial decisions. It will give up to date information on the current market structure as well as provide suggestions on stocks and bonds in which customers can invest.
Digital Wallets:
The invention of digital wallets has helped in boosting the level of digital money to the higher level. The best part of these wallets is that customers can purchase any item online either with a mobile phone or a computer and they can do this through cashless transactions.
Interactive voice response systems :
This is an automated voice system that helps in interacting with customers and routing calls to appropriate banking departments. This voice assistance also helps in answering certain questions. This feature adds in giving a pleasant experience to customers with their banks.
Conclusion :
Artificial Intelligence is gaining popularity day by day and banks are exploring and implementing this technology in transforming the way customers are assisted. So, the future of Artificial Intelligence in banking sector is very bright and with the introduction of Artificial Intelligence, it makes it even easier for a customer to do transactions from any place and at any time without waiting in long queues at the bank. Hence, the aim of Artificial Intelligence is to provide personalized and high quality customer satisfaction along with efficient and time saving services.
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