AI-Driven Banking to Increasing Operational Efficiencies

By CIOReview | Thursday, June 6, 2019

FREMONT, CA: In the days ahead, the banking and finance sectors will see the growing implementation of artificial intelligence to make internal activities more efficient and create delightful customer experiences. As companies gather more information, it is growing in significance to need alternatives that drive real value from that information. AI can offer the baseline value in combination with big data and analytics and go beyond traditional options to discover more in-depth perspectives.

Banks are moving quickly in this direction and implementing AI-powered chatbots to achieve better insights into the usage habits of their clients, deliver customized products, detect fraudulent transactions, and improve operational efficiency amongst others. It is highly helpful to push the government to convert public data systems and move banks toward more open frameworks. The applicability of AI was seen mainly in the front office, moving across sub-segments within the financial industry. Leading banks and other commercial organizations have introduced several utilitarian instances in sales and distribution, client front-end activities such as chat bots and product customizations. AI has seen many fruitful attempts in fields of the back office like fraud detection, fraud and investigations into AML (Anti Money Laundering), anomaly prediction, and portfolio investigation.

For businesses processing significant quantities of information and sharing information across various geographies, data privacy laws, and regulations comparable to GDPR could present stringent compliance requirements in the future. Plugging AI into financial services apps, in addition to enhanced compliance, comes with its own set of difficulties for solution suppliers.

Financial service organizations plan a well-designed and secure system for collecting, organizing, and archiving the correct information to create robust and meaningful AI offerings. Collaboration with ecosystem partners is needed to complement current products and provide a validation platform for nascent alternatives in exchange. This can demonstrate to be a small, high-return investment initiative for a big financial institution that may not be agile enough to construct and offer such a solution.

Although AI-led capacities are well-recognized by banks and economic institutions, they must shift beyond fragmented attempts toward a continuous program to inherit AI in their goods, services, and operations. Using case-driven concept evidence is an excellent way to begin this voyage with data-driven results.