How AI can boost Banking services

Artificial Intelligence (AI) is taking businesses to the next level mainly because of the services offered under this technology. Every industry has started seeing improvements in their business processes, costs and work efficiencies due to the introduction of AI in their field. For every industry AI brings something different to the table. AI has helped decision makers to take quick accurate decisions which are backed by facts and helps implement suitable options. When we talk about the financial sector, the insurance industry has already implemented AI in their field. Until now 54 percent of insurance companies have started using AI for their processes but only 34 percent of banking and finance institutions have adopted AI. As AI is in full swing, leaders need to closely understand where and how they can implement AI in their field and how they can reap maximum benefits. 

Financial services sector is a potential area where AI has a lot to offer as it is an exciting time for the banking sector. There is huge amount of data being generated in the Banking and Finance Industry (BFSI) and there are a lot of insights in those huge amounts of data which needs to be analyzed. AI can easily examine the data fed to it and provide outcomes which can be used to create more opportunities and understand the current scenarios.

According to Accenture’s recent Accenture Banking Technology Vision 2018 report, 83% of Indian bankers believe that AI will work alongside humans in the next two years — a higher than the global average of 79%

Banks now offer services through digital means which has resulted in increase of online transactions, growth in customers who are increasingly benefitting from digital initiatives of banks. Customer experience is one such area which can be enhanced through AI as quick support can be easily provided to the customer and he can even be offered tailored banking products according to his requirements.

Below are some of the areas in banking sector which are going to transform themselves because of the introduction of AI:

1.      Real-Time Fraud Detection

Financial sector has been at the receiving end of numerous frauds and according to a report released recently by McAfee, frauds in the financial sector all over the world has resulted in global economic loss of about $600 billion. But as the technology landscape changes, banks are rapidly transforming and adapting new ways to counter threats and frauds. Big Data also plays an important role in providing banks with deep insights about a customer’s data and behavior patterns. When we talk about mitigation of financial risk, new solutions which are AI enabled and new advanced financial models will help banks identify fund flow analytics in real time and discover fraudulent transactions which can be stopped the moment they are discovered.

2.      Chatbots for Customer Service

Like any other business, it is important for banks too to acquire new customers and provide them with services they need along with excellent customer support. People no longer visit banks to obtain minor information like interest rates, loans or services which a bank has to offer because all the customer needs to do is visit the bank’s website and find out all the information they are looking for in minimum amount of time. Chatbots have been proved effective by certain banks who are currently making use of this technology stating that installation of chatbots have resulted in upmost customer satisfaction. People find it tedious to call or email a bank in case of a query but they find it very convenient to reply to a ‘Hello’ by a chatbot on the bank’s website. Efficient, systematic and accurate conversation leads to great customer service.

3.      Improved Banking Products

AI can analyze various types of data and through that it is able to obtain great insights on customer’s behavior and preferences. By understanding customer’s requirements, AI will be able to serve them better with best possible banking services. Historical data plays an integral role in unearthing customer’s buying patterns which are necessary for providing expected banking products and services.

4.      Improved Security

Whenever we adopt new technology, there are always new challenges that we face and thus in this case it is important to ensure that banks remain in compliance with industry regulations and protect customer’s private data from losses, frauds and security breaches.  The new technology will pair block chain and AI-powered algorithms which will offer multiple layers of modern and robust security which will reduce the risk of tampering with transactions which results in losses.

Conclusion

As banks are taking steps towards adopting AI, they are willing to change their traditional methods along with current processes so that AI can contribute in new generation transformation which will enhance the financial industry.

The Future of Artificial Intelligence and what will it look like

Artificial intelligence has come a long way from being just a science fiction dream to a reality which we see today. The world is evolving at a rapid pace and with it the technologies are being upgraded and are getting better too. Today we have more power in our pocket than we had in our homes in the 1990s. Not long ago, holograms and smartphones were just science concepts but now the smartphones can check our health as the technology is evolving. Some of the application areas of artificial intelligence are health, education, entertainment, services, security and many other domains but these fields are specifically the most to benefit from this technology. People are beginning to explore the benefits of AI and how it can ease their life. Artificial Intelligence and Machine Learning go hand-in-hand so that machines can learn about critical programs to gain knowledge and respond to demands to perform similar human-like tasks. Artificial Intelligence enables a machine to self-learn from experiences and human intervention which finally provides us human like capabilities for interaction and problem solving potential. From chess-playing computers to self-driving cars, AI is present in many areas which we not might have thought of. AI makes use of Deep Learning and Natural Language Processing (NLP) to accomplish tasks like these which drives automation and intelligent processes.

Recently the most progressed fields are Augmented Reality, Virtual Reality, Voice Assistance and Artificial Intelligence, and people are beginning to wonder what the future might be like with this kind of technology. To explain these technologies in 2 lines I would like to start with Augmented Reality, which combines virtual objects with the real world which gives an interactive experience by computer generated perceptual information. Another one is the Virtual Reality which is a computer generated simulation of a 3D image which can be interacted in a real or physical way through an electronic device which has sensors. Last but not the least is the Voice assistance which has been with us for many years now but the enhancements in AI has provided more room for improvement in voice assisted technology.

There are many examples of AR which are being used by individuals and industries like; IKEA uses the application Place, which they have recently released so that customers can check how different types of furniture look in their home which simplifies purchase decisions for the customers. Niantic’s Pokemon Go, an Augmented Reality based smartphone game, enables the player to catch Pokemon on real time locations. Automaker Company Ford, uses Microsoft’s HOLO LENS to design cars and experiment with new designs. Other automakers, Audi and Cadillac use Virtual Reality to enhance the customer experience so that the buyers can see the car model and the features. So in short what I mean to say is that now-a-days industry giants have started implementing technologies like AR and VR in their fields and are experiencing a much better way to run their business. Examples for Voice assistance technology are Apple’s Siri, Samsung’s S Voice, Microsoft’s Cortona and Google Assistant. A lot of development has been made in the field of AI in the last few years which has motivated developers and companies to create more products and services around it.

These are some of the points which suggest why Artificial Intelligence is important:

1. Repetitive Learning though data

AI carries out continuous computerized tasks which are high volume and automated. Through Deep Learning, AI seeks to get in depth information about a problem or a query raised by an individual. Human enquiry is still important to ask the right question so that the learning is in the right direction.

2. Adding Intelligence

Products which are already in use are improved through the integration of AI capabilities. Different types of components like automation, learning bots and conversational platform can be merged together along with huge amounts of data to improve the product or the service through AI.

3. Adapting to newer algorithms

AI continuously learns newer algorithms through structured data available to it where a new skill is acquired in order to provide newer experiences. An algorithm is important solve a certain case or a problem. When new models are introduced, AI automatically learns through training and added data.

4. Deeper Insights

More and more analysis of data leads to deeper understanding of the database available to AI and through neural networks many hidden layers can be uncovered. With highest compute power, various models can be trained to go deep into data to get more relevant out of it.

5. Incredible Accuracy

The most appropriate example to define this point will be Google search and Google photos which gets better as we continuously use them. Through deep neural networks, AI achieves higher accuracy to dive deep in data and select patterns of the users which can be helpful in providing similar results.

6. Proper utilization of data

The algorithms are self-learning and the data is used appropriately and excessively by AI which helps bring out best results out of the big data. Since the data is important now than ever before, it creates a competitive advantage because many newer techniques or solutions and be uncovered through proper analysis.

Conclusion

Artificial Intelligence can benefit lives of each and every individual because it has the potential to offer a technology which can be implemented in day-to-day life and would make their lives easier. There are multiple areas which can benefit from AI and this will result in reduction of human efforts, costs and labour. Industries and Enterprises are already using AI in their business processes and have started seeing the difference through high efficiency, lower operating costs and faster decision making.

The Effect of Artificial Intelligence on the Finance Industry

Evolving technologies have always had a great impact on businesses because of how they can improve the existing process. Certain technologies offer great scope to take your business to the next level because they have the capacity to change the way you do your business. Artificial Intelligence is currently the most trending topic due to the opportunity it offers to benefit from its use. There is no other industry except the financial industry who is trying their best to adopt Artificial Intelligence for speed, accuracy and efficiency in business. Artificial Intelligence and Machine Learning offer a great deal in the finance industry through algorithms in the financial services. At the heart of the Artificial Intelligence are some of the algorithms which are self-learning and can help the finance industry if fed the right data. There are multiple fields in finance which can eventually benefit from the implementation of Artificial Intelligence and could prove to be of great value to the customer and the financial organization too.

Let’s have a look at the areas in finance which will benefit from the introduction of Artificial Intelligence;

Customized Financial Services

Artificial Intelligence has expanded the range of offerings under the finance segment based on the customer preferences for financial spending. Data accumulated by AI suggests that there should be various customizations in finance based products and services because the spending pattern of customers differs in many ways. There are some customers who look for specific offerings from a bank and he/she should receive the optimum package based on the need and want.

Reduction of cost in Finance through Artificial Intelligence

We can all agree on this because AI has definitely brought the costs down in finance by providing multiple services at an affordable price. Now-a-days the services offered by banks are comparatively low on price which is good for a customer because there are various preferences when it comes to availing a certain service. AI has made is extremely convenient for the public to make use of the financial services.

Fraud Detection

Artificial Intelligence can proactively detect if a fraud is going to take place in a financial system or not. AI makes it a point to keep all things secure and take steps towards safety before any chances of fraud. Fraud detection through AI can help bankers to follow the policies and regulations while providing a financial service to an individual. AI is expanding the financial products portfolio by continuously understanding the human psychology.

Less Human Intervention in Management

There is no longer a need for specific personnel to answer questions about financial services which are being offered and how it can help the customer. Now AI processes data to solve queries and suggest the best service or solution for an individual. Human opinions are no longer needed to forecast the demand of financial services.

Automation

Important decisions in finance cannot be inaccurate and thus AI learns and studies huge amounts of data before automating certain feature to provide a customer with accurate information. AI safeguards all the areas of automation to deliver the best results to the customer by keeping their trust.

Voice Assistance

This feature allows the user to use banking services based on voice commands rather than touching your mobile phone or any other device. Through voice based banking feature, many queries of a customer can be answered by AI with maximum ease along with transactions and other information.

Greater Insights

AI can dig deeper to get better insights into the existing data and newer data to look for trends and patterns leading to delivery of a service to a customer. With ever increasing data, AI can efficiently look into the raw data to excavate important information.

The Future

Artificial Intelligence in finance is able to continuously learn and re-learn the existing data, patterns which affect the finance industry. AI provides a great scope in developing the current products and services and also provides an opportunity to develop these existing products in the portfolio. Artificial Intelligence can regularly study the market to know what the consumers are looking for and can provide them those services before anyone in the market.