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AI-The Accepted Path to Drive Innovation and Growth in Banks

By CIOReview | Thursday, April 26, 2018

The banking space is undergoing a lot of significant changes lately, thanks to the growing IT advancements and innovative approaches in business strategies. With that being said, innovation is the major factor that is introducing future-driven objectives into the banking space per se, which involves the value chain, regardless of whether they are retail banks or globally recognized financial institutions. In this context, the only technology that has been capable of driving innovation in the financial space is artificial intelligence (AI). Almost all reports regarding the technology enhancements in the banking and finance space have been brought in by the advantages of AI. This might be because the benefits of AI have already been prevalent in all the other business verticals.

According to Oliver Wyman, the renowned management consultancy firm, automation is the factor that is mostly driving changing the financial services sector (FS). In a recent study, it has been predicted that automation will help in cost-cutting and lead to increase in revenue in FS landscape by almost 15 percent.

However, the most critical question that has been in the discussions is whether AI can cast a positive influence on the profitability, revenue generation as well as the growth of the enterprise. Interestingly, most entrepreneurs and AI service providers have agreed on this fact that AI will bring a positive impact on the revenue and profits. In fact, companies have already started implementing AI in their infrastructure and are experiencing almost 17 percent increase in the average revenue generation. It can be foretold that AI will render more advantages to the banking and FS arena in the later years to come.