AI-the Next Breakthrough in Banking
One innovation above all is shaping the future of the financial industry—Artificial Intelligence (AI). The data-rich sector presents huge opportunities for AI adoption and harnessing the technology will help banking institutions gain a competitive advantage. There is one area in which banks are arguably adopting AI faster—the management of unstructured data. This cluster of unstructured data can either be from emails, news articles, legal documents, or recorded telephone conversations. For instance, JPMorgan Chase, an American multinational investment bank and financial services company, recently introduced a platform known as Contract Intelligence (COiN). The usual process of manually reviewing annual commercial credit agreements was time-consuming. However, by implementing the COiN platform—which runs on a machine learning system powered by a private cloud network that banks use—the documents could be analyzed and reviewed in a matter of seconds. This helps cut down costs, reduce manpower, and save valuable hours.
Additionally, AI also has the potential to make banks ‘smarter.’ It can enable better delivery of customer insights and intelligence, thereby leading to superior customer experience—something that is the key to a bank’s uniqueness, growth, and increased profits. Another advantage is, AI can study and learn the behaviors of financial market participants, who can either be buyers, sellers, or investors. It can also analyze risk assessments better and improve a bank’s customer service in several ways. For example, AI has the ability to aggregate all information about a customer, which include their account details, transactions, and more; so that it ‘knows’ the customer, and then tailors its interactions accordingly. AI can also go beyond changing business processes to changing the entire business model, thereby enabling banks to meet their customers’ needs and set themselves apart. And, beyond any doubt, investing in the right AI technology can have a major impact on an organization’s operational efficiency.