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A large customer base encourages banks to constantly innovate to better serve their users. Artificial intelligence (AI) comes to the rescue, offering financial companies various ways to improve products and services.
According to an OpenText survey, 75% of surveyed banks with assets of more than $ 100 billion are already implementing AI strategies and 46% - with assets below this amount.
One of the most common uses for advanced banking technology is through AI - powered chatbots. For example, the WeChat messaging app allows users in China to make a payment in a chat window. In general, in many large banks, such as Bank of America, AI-enabled chatbots make it possible to interact with customers 24/7.
AI is helping to improve mobile banking services by automating the management of credit and debit cards. In addition, by taking AI to a higher level of analysis of borrower behavior, the likelihood of fraud can be reduced.
For example, the USAA, a company that offers banking and insurance services to individuals and families who serve or have served in the US military, has decided to invest in AI for this very purpose. By using technology, the company understands how customers use its programs, their typical behavior, which makes it possible to prevent potential fraud.
The USAA assures that by using such fraud prevention methods, they save on average about $ 100 million a year. However, other studies also show the benefits of advanced technology for budget optimization. So, according to McKinsey's calculations, thanks to AI, banks can potentially save about $ 447 billion by 2023.
AI-powered solutions help banks and lenders make smart underwriting decisions. After all, AI, based on a number of factors, more accurately evaluates borrowers.
For example, the Indian company Agtech Cropin uses machine learning to analyze data on crop productivity, land use to develop underwriting models. Thus, it is possible to predict the client's creditworthiness much more accurately than using traditional risk models. And ZestFinance, the manufacturer of the ZAML platform, offers AI-based solutions that help financial companies evaluate borrowers - without a credit history at all.
In addition, AI models in banking are used to analyze the sentiment of a variety of financial markets. Using machine learning techniques, AI technologies can predict market conditions and provide insight into market trends. For this reason, AI is widely used in hedge fund management.
According to a Gartner study, by 2025, 75% of venture capitalists will use AI to make early investment decisions. Thus, pitching or financial performance will play an increasingly smaller role in investor decisions about whether to invest in a particular company.
COVID Reality Challenges
The coronavirus has fundamentally changed the way banks, employees and customers interact on a daily basis. The pandemic has raised consumer service to a strategic goal. By knowing the habits of their customers, banks can more quickly predict behavior and offer new products and services that meet specific needs. For example, AI technology allows a bank to make insurance offers based on where the customer lives.
Due to the distancing requirements dictated by the pandemic, the role of chatbots has increased. AI conversational platforms that can answer questions from thousands of topics look indispensable in post-covid reality.
In addition, the pandemic has highlighted fraud vulnerabilities in the financial system. Thus, the relevance of technologies continues to grow, including those based on AI, to prevent fraud.
In the future, AI will be widely used in digital payments to create a neural network that intuitively knows how a person wants to spend their money before they do. This will be facilitated by geofencing technology, which will track when a person enters a store, save a debit / credit card on file for easy automated checkout, and eliminate the need for checkout counters and point-of-sale systems (POS).
According to an OpenText survey, 75% of surveyed banks with assets of more than $ 100 billion are already implementing AI strategies and 46% - with assets below this amount.
One of the most common uses for advanced banking technology is through AI - powered chatbots. For example, the WeChat messaging app allows users in China to make a payment in a chat window. In general, in many large banks, such as Bank of America, AI-enabled chatbots make it possible to interact with customers 24/7.
AI is helping to improve mobile banking services by automating the management of credit and debit cards. In addition, by taking AI to a higher level of analysis of borrower behavior, the likelihood of fraud can be reduced.
For example, the USAA, a company that offers banking and insurance services to individuals and families who serve or have served in the US military, has decided to invest in AI for this very purpose. By using technology, the company understands how customers use its programs, their typical behavior, which makes it possible to prevent potential fraud.
The USAA assures that by using such fraud prevention methods, they save on average about $ 100 million a year. However, other studies also show the benefits of advanced technology for budget optimization. So, according to McKinsey's calculations, thanks to AI, banks can potentially save about $ 447 billion by 2023.
AI-powered solutions help banks and lenders make smart underwriting decisions. After all, AI, based on a number of factors, more accurately evaluates borrowers.
For example, the Indian company Agtech Cropin uses machine learning to analyze data on crop productivity, land use to develop underwriting models. Thus, it is possible to predict the client's creditworthiness much more accurately than using traditional risk models. And ZestFinance, the manufacturer of the ZAML platform, offers AI-based solutions that help financial companies evaluate borrowers - without a credit history at all.
In addition, AI models in banking are used to analyze the sentiment of a variety of financial markets. Using machine learning techniques, AI technologies can predict market conditions and provide insight into market trends. For this reason, AI is widely used in hedge fund management.
According to a Gartner study, by 2025, 75% of venture capitalists will use AI to make early investment decisions. Thus, pitching or financial performance will play an increasingly smaller role in investor decisions about whether to invest in a particular company.
COVID Reality Challenges
The coronavirus has fundamentally changed the way banks, employees and customers interact on a daily basis. The pandemic has raised consumer service to a strategic goal. By knowing the habits of their customers, banks can more quickly predict behavior and offer new products and services that meet specific needs. For example, AI technology allows a bank to make insurance offers based on where the customer lives.
Due to the distancing requirements dictated by the pandemic, the role of chatbots has increased. AI conversational platforms that can answer questions from thousands of topics look indispensable in post-covid reality.
In addition, the pandemic has highlighted fraud vulnerabilities in the financial system. Thus, the relevance of technologies continues to grow, including those based on AI, to prevent fraud.
In the future, AI will be widely used in digital payments to create a neural network that intuitively knows how a person wants to spend their money before they do. This will be facilitated by geofencing technology, which will track when a person enters a store, save a debit / credit card on file for easy automated checkout, and eliminate the need for checkout counters and point-of-sale systems (POS).
