Artificial intelligence and machine learning are set to transform the banking industry. According to the McKinsey Global Institute, the use of these technologies to improve decision making, tailor services and enhance risk management will generate more than $250 billion in value across the sector.
In fact, risk management is one of the functions likely to reap the greatest benefits, especially in fraud prevention and credit underwriting. In leveraging these emerging technologies, banks can make use of all available client data, predict their changing needs and determine what services will benefit them most.
Below, we unpack how these technologies are transforming banking and finance businesses across the globe.
With machine learning and AI banks can evaluate risk factors for individual consumers with greater accuracy. This is because the information they are using to make decisions is based on a much broader digital footprint. With greater access to data that is relevant, banks are far better informed when interacting with their customers.
In recent years, the banking sector has been hit by numerous, highly publicised scams. Financial institutions and banks around the world keep looking for better or more efficient ways to ensure that their platforms remain secure. Machine learning and AI are now being used to analyse thousands of transactions in real-time so that security professionals can quickly and accurately check for any potentially fraudulent activity.
Handling customer queries
Chatbots effectively clone human conversations. This technology makes it possible for banks to serve customers efficiently and handle their queries in a matter of hours. According to a study by Juniper Research, every query handled by a chatbot saves banks around four minutes of human staff’s time.
Modern customers demand experiences that are customised according to their preferences. Effective data analysis allows banks to track past customer behaviour and then use this data to make predications and target campaigns in the future.
Machine learning and AI create opportunities for the banking sector to better understand their operations and their entire consumer base. Want to read more about all things digital transformation and emerging technology? If the answer is ‘yes’, you need to subscribe to our monthly newsletter. Simply complete the form below and you’re all set.