The increasing invasion of AI and the resultant impact is palpable in almost every industry and the banking industry, too, can ill afford to ignore its application. The banking sector is seeing increased adoption of automation in various business processes as it offers a multitude of benefits including enhanced productivity. Artificial intelligence proves effective where the industry is strong on processes, has good data, established rationales and rules. AI is driving banks to focus on digitization and move to zero touch banking with cashless transactions and digital payments.
Areas in banking transformation that AI impacts
Artificial Intelligence is transforming the banking industry.
The banking and financial sector thrives on data - large unstructured as well as structured ones - through KYC. Deep learning deals with unstructured data, making it ideal for analytics based on customers’ demographics, banking patterns, and current trends. The cognitive technologies refine the unstructured data for providing relevant, contextualized and meaningful engagement and services to customers & stakeholders with superior banking experience.
The social media data with predictive analytics provides avenues for monetizing opportunities for merchandise and cross-selling products based on customer preferences.
AI-powered VR/AR and new emerging technologies provide a smart ecosystem for zero touch banking while AI-powered virtual assistants enable filtering of customer queries & requests, provide current and latest updates for products, services, changing policy, government regulations and controls. Chatbots, through cognitive AI processes, update information and provide augmented decisions to customers based on the past data & trends, saving time for the customer as well as the banks.
Automation bots, based on cognitive process automation simplify and automate the manual processes, improve process efficiency for financial reconciliations, reduce operational cost, average time and efforts. Predictive assistance and maintenance is critical to zero-downtime banking operations.
The Robotics Process Automation helps manage large volume of data like KYC, brings in speed and accuracy by automating manual processes with built-in intelligent workflows and approval system. This helps in reducing the processing time to near zero, increasing operational, functional efficiency and credibility of financial systems along with process standardization.
Legal documents, tenders, contracts and agreements are integral to banking and financial institutions and govern the cross-functional internal and external processes and stakeholders. AI-powered contract intelligence and anomaly detection help banks with solutions with regard to credibility.
AI solutions for banking