How do Banks use AI?

Banks play a vital role in the development of the financial life of modern society. One can even consider it as the lifeblood of today’s world economy as the banking industry deals with cash, credits, and other financial transactions. Banks are responsible for tracking the expenditures (Consumer’s) over savings and also motivating their consumers in putting aside savings for the future. Since the banking industry is a major pillar for the development of the world’s economy, every financial transaction must be properly documented. To deal with such an immeasurable task, banks have detailed records in their databases. There are various channels whether this information can be accessed such as ATMs, mails, telephone banking, online banking, and mobile banking. The entire banking system is truly a wonder as it is so well connected that every transaction and exchange of information can be traced from any part of the world just by connecting to these networks. Of course, manually dealing with such immeasurable amounts of data and directly affects the teams by making their workload insane and providing opportunities for errors to pop up. Therefore, to deal with such an issue banking operations are often integrated with Artificial intelligence. AI has a profound impact on consumers especially when backed up by a machine learning model to encourage the consumers according to their financial status to grow their money. Integrating Artificial Intelligence in the banking industry brings insight into the customer’s preferences, to ensure that they are happy with the services they are given and also assist in understanding the expectations of customers from the bank.

AI Improving the Banking Industry

Customer Satisfaction

Customer satisfaction is essential for any industry to strive but this is especially true for the banking industry. The banks provide personalized and more efficient services to every individual customer. Artificial intelligence assists not only in increasing revenue, faster decision making but also in having a good customer relationship. Integrating Artificial Intelligence in the banking industry not only improves customer satisfaction but also assists in making the whole operation more efficient. 

Chatbots

The Bot, short for robot, is an automated chat program that is either run automatically or follows a pre-determined path. AN AI-integrated chatbot is very useful in the banking industry. Chatbots are extremely helpful assistants as usually people are caught up in their daily jobs so physically reaching the bank becomes an impossibility. This issue arises as usually, people are generally freer either in the evenings or weekends, both times banks are closed. Money is a kind of commodity that can be required at any point in time. Chatbots are a smart way of providing efficient customer service that is available 24/7. Chatbots are responsible for assisting customers in knowing their transaction history or if they require or are eligible for any additional services. Chatbots have paved the way for several industries to understand their customer base much better and also provide the right offers or even reward them.

Detecting Fraud

When one hears the word fraud, alarms bells start ringing in the head. In the unfortunate case of fraud, the affected individual feels completely in over their head due to financial losses. However, due to the anti-fraud measures set in place, the system gets to know immediately that something is wrong and is immediately brought to the attention of the bank, then the bank authorities take the necessary steps to handle the incident in a very organized manner. This quick response is essential as it helps build trust and reliability of the ban so more customers more to us and the retainability to a customer increases

Conclusion

AI-powered systems have a common knowledge in today’s day and age, especially after Covid. AI brings the opportunity to more efficiently and address the workload of agents by segregating and making sense of the data. With the power of AI, one can expect:

• An improved customer experience
• Saves time both for the customer as well as for the bank.
• Reduces human error
• Builds a strong and loyal customer
• The movement of large cash inflow and outflow. 
• Deals with cashless transactions from any place and at any time

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