Since the development of Artificial Intelligence in the 1950s, there has been no looking back. Slowly but surely we have incorporated A.I. in almost every aspect of our lives. And the banking and finance industry is no exception.
For example, imagine going to the bank and talking to a robot instead of a human. Taking care of your transactions and businesses based on the suggestions of an artificially intelligent machine. A system that has extensively studied savings goals and risk capacities. Well, these are not science fiction anymore. With the world evolving at an alarming pace, artificial intelligence is the next “Big Thing”.
Here are five ways A.I. is changing the banking industry.
One of the biggest problems of the current banking systems are the limited hours. It seems that the banks are always closed when you need them the most. Well, with A.I. we can solve this problem. Automating financial services that don’t necessarily require any human interactions.
Recently The Bank of America, one of the largest banking firms in the world, launched their artificially intelligent virtual assistant Erica. Providing service for about 25 million of its mobile clients.
Back in 2016, JPMorgan Chase invested over$9.5 billion in technology. With $3 billion dedicated toward new initiatives. And $600 million for emerging fintech solutions. Lately, the firm implemented an A.I. based computation system named COiN to analyze legal documents. COiN can analyze documents that would take hundreds and thousands of human hours, in seconds.
The government of any country imposes many strict rules and regulations on banks. As they can be a site of fraudulence and money laundering. So, banks have to be extra careful about these matters.
Machine Learning and Deep Learning, which are a derivatives of A.I. are being used by many banks. Banks such as Citi Bank, Bank of America, Wells Fargo and many more. Here ML and DL are being used to analyze huge amounts of data and case studies. Later using this data to predict the likeliness of a transaction being fraudulent.
Elsewhere, firms such as Swiss-based UBS and Netherlands-based ING have AI systems that explore the market. These A.I. systems find legitimate investments opportunities for these banks. As a result, these systems model and optimize themselves in such fashion that they can reach levels of efficiency that we as humans just cannot.
IMPROVE CUSTOMER EXPERIENCE
Applications embedded in user end devices can provide the user with financial advice. And can also forecast their investments. These systems can incorporate huge amounts of data to calculate a customized investments plan for any particular user and also track it for them.
Also, with these AI systems, we are breaking down linguistic barriers. And making the user experience a lot smoother. These language technologies can process queries to answer questions and find information. Connect users with various banking services. This, reduces human error and increases efficiency.
REDUCE COSTS FOR THE BANK
Even though we are digitalizing exponentially, there are a lot of jobs that are repetitive in nature and are performed by humans. A lot of these jobs require tons of paperwork. And are thus prone to a lot of errors.
By implementing these language processing technologies and handwriting recognition technology and many more, we are automating a lot of the workflows. Reducing much of the human involvements in these matters. As a result, it helps us create many more jobs that help to improve the user experience. And provide many more additional services. Lately, according to Accenture, banks are expecting about 20-25% savings in their operations by implementing intelligent assistants and AI-based systems.
With the introduction digtal wallets such as Google Pay, PayPal, Apple Pay and many more the user preferences of payment methods are slowly changing. These eliminate the need for any physical cash. And are thus greatly expanding the reach of money. Therefore, it’s not too far that physical cash becomes a thing of the past. And, with the introduction of Blockchain technology, that provides the facility of real-time processing the experience is becoming faster and smoother.
Now, we can see how jobs that were almost entirely dependent on human interactions and excessive paperwork like banking, are also slowly but surely reaping the benefits of technology. It is working towards providing a much more pleasant and smooth user experience for all of us. People may accuse technology of stealing jobs, but the truth is it creates opportunities for new ones.