The Future Of Artificial Intelligence In Banks
BANKING FINANCE|September 2021
As per the World Economic Forum's latest research, artificial intelligence is already changing the way financial institutions provide more contextualized services to their customers and banking is no exception.
Rajeev Shankar

Future customer experiences will be centered on AI. Where every financial institution is competing for the diversity of data, managing partnerships with competitors and potential competitors will be critical and will require careful handling.

The Rise of AI in Banking

Strong and speedy process, the advent of mobile technology, data accessibility, and the spread of open-source software offer AI a huge opportunity in the banking sector. Though AI has been deployed in banking for many years; it remained unnoticed. In the intense app-driven world, the banking sector is eyes on leveraging with the assistance of mobile app development companies.

Digital personal assistants and chatbots have transformed the customer services and business communication. From aiding individuals in carrying out daily tasks and giving them a customized experience, virtual assistants and chatbots have many applications. Taking a view of the banking sector, mobile app development services can integrate AI technology for enhancing services.

Data regarding the financial transactions can help the bank understand the collection & expenditure pattern of the customer. The bank can come up with a customized plan accordingly and assist the customers with budgeting and other treasury functions including Credit facilities, Fund Management & Supply Chain Finance. What's an additional thing bank can send the notification about the advice for keeping a check on the expenses and investments based on the data.

Artificial Intelligence-based report generation can be used as a tool for better monitoring of transactions by the company's management. Special reports can be generated based on customers' general payment pattern, which will highlight unusual transactions in terms of amount, beneficiary, payment schedule etc. These reports can be used by Top Management of the company to take informed decision.

The use of artificial intelligence (AI) has been gathering momentum in the Banking sector. Even in 2010, Spanish Banking group Santander had introduced autonomous robots for customer assistance. Another recent example is UAE-based Emirates NBD, which announced AI robots to interact with customers.

In one of the leading banks, cheque authentication today is mostly done not by a human teller, but by an artificial intelligence (AI) system. It has multiple advantages. When someone tries to forge a signature, there are minute fissures, blots or anomalies that may not be visible to the human eye but will become glaringly obvious to a trained bot (software robot). And if the account holder signs in hurry and it's not quite the same as in the bank's system, the bot understands it's actually a genuine signature. Only in instances wherever old age or disability has altered a person's signature significantly does the bot pass on the query to others.

These days, Indian banks are prominently deploying chatbots. SBI has also deployed SIA (SBI Intelligent Assistant), artificial intelligence-powered software that has the capability to respond to 850 million queries a day, making it the largest-financial sector AI solution in the world. SIA is a multilingual chatbot which can respond in 14 languages in speech or text. It will enhance the level of customer service by several notches.

ICICI Bank's AI-powered virtual personal assistant iPal, today addresses over 1.5 million queries a month. The bot answers questions, can also pay bills, do fund transfers or recharge your mobile on your behalf. The bot can also handle complex queries on GST, government digital initiatives, service requests, ATM locations, branch details, and IFSC codes.

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