If there is one innovation that has dramatically shaped the future of the financial services industry throughout the entire value chain, it is artificial intelligence (AI). The technology has spread rapidly across the financial sector and has greatly revolutionised banking.
Let’s look at five ways AI is already transforming the banking industry:
1. Customer service
Customer service is an integral part of banking and will remain vital in the foreseeable future. Many banks have already incorporated machine learning to help them deliver a more efficient and memorable experience to their customers. From humanoids to chatbots, most large banks are investing in artificial intelligence in some capacity to supplement their CRM by handling customer issues quicker, improving customer service, boosting loyalty and increasing their bottom line.
2. Mobile banking
Mobile banking helps offer customers a 24/7 service while freeing up customer support staff to focus on more complex tasks. AI in mobile banking is significantly reshaping the customer experience through the use of simple user interfaces that encourage a greater uptake from a range of customers, as well as chatbots that help customers to check their account balances, answer bank-related queries, and provide reminders regarding pending bills. Greater uptake in digital software results in more data that can be used to improve services in the future.
3. Security and fraud detection
The security of customer accounts is, of course, a top priority for financial institutions. As technology evolves and transactions increase over time, security threats are also growing. The ability of AI to sift through enormous volumes of data and discover patterns that might be overlooked by human staff is one of its greatest strengths. AI helps to counter any security threats by using algorithms to determine any suspicious activities and flagging them accordingly. Moreover, it can also provide improved user authentication to limit any unauthorised access to customers’ funds.
4. Algorithmic trading
The human brain can only analyse minimal information at a particular time. However, with machine learning, thousands of pieces of data can be analysed simultaneously by using algorithms. The application of machine learning in the banking industry has helped banks to evaluate the potential returns and risks of certain customers or trading positions to facilitate more accurate decision making.
Banks are a repository of customer data, including customer transaction records, demographics and website analytics. By using machine learning to amalgamate and analyse the information provided from multiple databases, the institutions can have a 360-degree customer view that will enable them to personalise products and services to deliver a more competitive, tailored service.
It makes sense then that the AQOVIA A1 platform is ideal for banks which want to get the most from their data. The intelligence management platform can help banks to leverage the best insights from their data repository to understand the ROI of their data investments. To find out more, CONTACT today.