We see artificial intelligence’s everyday usage within payments, money management and for robo-advice, in the area of intelligent digital assistance that handle customer service inquiries and tasks. Artificial intelligence (AI) processes “big data” more efficiently than humans do and can identify speech, images, text, patterns of online behavior and many more.
We can say that by definition AI is the power of machines to interact and learn to complete tasks previously done by humans. The learning process and the interaction with humans and other machines lead to improvement of natural language as well as faster and more accurate decisions.
In financial services there are many factors that are leading the industry to implementation of innovative approaches based on AI. Some of them are the massive growth of structured and unstructured data, the availability of new technologies such as cloud computing and machine learning algorithms, pressure brought by the competition and of course the development of new regulations and the escalation of consumer expectations.
We can find many of the benefits of AI for the banking sector in back office operations, product delivery, customer experience, compliance, marketing and risk management.
Customer Advise and Personalization
2017 Retail Banking Trends and Predictions report states that the focus nowadays is on the customer experience, and the need of personalized communication and advice. Here AI comes in the form of robo-advisers, which are online wealth management services that provide automated, algorithm-based portfolio management advice without the help of a human counterpart. These automated financial advisers and planners can guide users in decision making, also make recommendations related to buying or selling stock and bonds. It is believed that custom marketing and solution development to improve the customer experience will be the primary use case for financial organizations.
Customer Support
The continuous update needed to compliance requirements, customer informational documentation and FAQ (Frequently Asked Questions) is another very important application of AI in the banking sector.
Fraud Detection
For many years AI has done far more than just improving the monitoring process, but is now able to respond in real time to potential fraud. Tools which learn and monitor users’ behavioral patterns to identify anomalies and warning signs of fraud attempts are now available. In addition to these tools, a collection of evidence necessary for conviction are both used to fight crime.
Personal Finance
Companies that provide financial services are now embracing personal finance management such as smart wallets that monitor and learn users’ habits and needs, alert and coach users, when appropriate, in order to show restraint and to alter their personal finance spending and saving behaviors.
Voice Banking
This new technology allows customers to use voice commands for banking services. The natural language technology can process queries to answer questions, find information, and connect users with various banking services. The financial services company – Barclays is now developing a technology that will allow users to make money transfers by talking to a robot computer system.
By far most of the financial services organizations use AI solutions to increase workforce productivity, but there are many other that identify opportunities in data which would be otherwise missed. The third most common reason the financial sector is adopting artificial intelligence is that it improves their ability to compete with peers.
We live in a technological era, and probably there is no turning back, so banking and financial services organizations need to pay attention and be prepared for technological developments such as AI and plan ahead for what is coming, including how they will address the changes.
However, it is very important to ensure that these intelligent applications are developed in a way that they would provide the desired benefit and that the user could trust the advice and services provided
ORIGINAL ARTICLE BY THE ONELIFE TEAM
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