How AI and ML Gives a High-Tech Makeover to the Banking Industry

By CIOReview | Wednesday, June 12, 2019

FREMONT, CA: The emergence and adoption of new technology have been changing the banking experience for the better in recent times. The banking industry is one of the more traditional, but it is on the verge of transformation, thanks to technologies like artificial intelligence and machine learning. AI and ML help banks deliver services in a much-improved manner and reduce dependence on human experts. The technologies can impact many aspects of the functioning in the banking industries at many levels, but some of the critical improvements can be seen in the following areas.

• Making Credit Decisions

By handing over the credit decisions to AI-driven systems, banks make the process more sophisticated and accurate. AI can make assess potential borrowers faster than human counterparts and make decisions without any bias. Hence, the risks associated with lending become lesser with AI. Data scientists can train machines using customer data and develop credit scoring systems that grow more accurate over time.

• Management of Risks

AI involved systems require minimum human intervention, thereby ensuring human errors to be ruled out from the decision making processes. Apart from that, AI can also forecast risks by taking the help of record of risks and analyzing them within short durations of time. This helps the banks to mitigate threats.

• Prevention of Scams

Financial institutions always face the danger of frauds. AI-driven tools can help strengthen the system against frauds by effectively assessing each process and every customer interaction. Through machine learning, systems can flag anomalies and reduce the chances of fraudulent transactions and malicious activities.

• Customized Approach and Better Customer Satisfaction

The banking industry is becoming more and more, and the banks can leverage the power of technology to fulfil customer expectations. AI-powered chatbots which provide round the clock assistance, personalized platforms where consumers can learn about the services offered and robust security are some of the use cases which help banks provide support to consumers.

With all the betterments that AI has to offer, banks are increasingly adopting it. AI and ML have many things to offer to the banking industry, and banks should make the most of it.