In the digital age we are living in, the technology that is recognized as the most effective and prominent for many businesses, is still AI technology. The rise and impact of using AI in the banking sector have been phenomenal, and it has completely redefined the way banks operate, unlocking the potential of banking services for customers, and how they take the customer experience to the next level. As consumers' behavior and expectations have drastically changed, they seem to prefer quick responses and personalized services. In this article, we will take a look at a few ways of how AI is transforming the banking industry and digitizing their processes to meet customers’ demands efficiently.
There are rising numbers of banking businesses adopting AI technology to improve their financial services due to its capabilities and benefits that can serve customers' expectations and change their behaviors, especially for those who want to access their accounts and make any transactions 24 hours a day in real time and in a safe manner. The main capabilities of AI that support banking services include Customer Service Systems such as Robo Advisor, which operates as a digital financial advisor that automatically builds and manages customers’ portfolios based on their investment preferences and patterns. Also a chatbot, which allows customers to get the assistance they need in real time through automatic chat using NLP (Natural Language Processing), has been developed with the ability to understand human language to be able to provide information and answers to individual customers accurately and quickly. Next is Service System Optimization, which increases the ability and eases the workload of staff to verify the accuracy of information in customers’ documents before processing to the next step. Also, customers are able to verify themselves through the NDID system, which allows them to experience digital service through their mobile devices when they need to open bank accounts, stock accounts, apply for loans, and other financial transactions without having to visit the branch. Lastly, AI can be a game-changer in Risk Management since it can analyze a large set of data and is able to identify malicious activities such as money laundering and identity theft from customers’ patterns of using online banking. AI can help predict and prevent credit risks and identify individuals and businesses who might default on their loans. Moreover, AI has proven to be very efficient in battling fraud and other cybercrimes in the banking industry. Previously, we have heard about Neobank, which refers to the digital-only banking platform that operates solely online to mainly provide a payment gateway for both domestic and international transactions and a digital loan service. Even in the near future, Augmented Reality (AR) and Virtual Reality (VR) will be deployed to be used as part of banking customer services to offer a new experience of communication and assistance to the next generation of customers through Metaverse. This could possibly be the next big thing in the future where customers will be allowed to access the bank more conveniently in a seamless banking experience while the bank can extend their services in a new dimension with more convenience.
We can see that the AI technology empowers banks to leverage human abilities to ease staff repetitive workload in every step of the operations. From managing and analyzing vast amounts of customer data to minimizing errors in each step and helping reduce costs in the long run, AI offers great opportunities for banking institutions to grow. From the customers' side, they look for secured financial transactions, which is why banks need to accelerate their services in every aspect with the help of AI to meet the needs of customers and build confidence in them so they will become more loyal customers in the end.