Banks are investing in AI technology, a move that will shape the future of their industry for decades to come.
There have been many reports that spending on AI across the globe has reached an all-time high - with no sign of slowing down. And it’s no secret that AI is impacting the way business is handled in the financial world.
For banks, AI is proving to have a positive impact. Let’s take a look at how this is being done.
Boost Customer Experience
Implementing AI technology can change how customers interact with their banking system online or through apps on their phones and tablets. It gives them access to a more personalized experience.
With the use of Natural Language Processing (NLP), a branch of AI, computers can better understand the spoken and written words of humans, thus making the interaction between them more effective. It allows machines to understand and interpret what a human is saying so that the customer can more quickly and efficiently be assisted. As a result, banks use computers to handle more mundane tasks, leaving live agents to handle more complicated matters, leading to cost savings without sacrificing customer satisfaction.
Improve Operational Efficiency
When AI programs are used to handle everyday operational tasks, there is a noticeable improvement in efficiency. Technology moves at a steady pace and is not impacted by human traits. This means loans and other banking documents can be processed in a more automated manner. It also allows a greater volume to be processed within a specific time frame with fewer errors.
As a result, more loans and other applications can be processed quickly, leading to an overall improvement in efficiency. Because more is getting done in a shorter amount of time with fewer errors, banks will notice a bonus - an increase in cost savings.
At Cognistx, we applied AI to the loan application process for RISE Miami-Dade. Our algorithm helped Community Development Corporations (CDC) in the greater Miami area process applications for business assistance quickly. By automating part of the process, loan officers could focus on working with approved applicants and supporting their efforts to grow their business.
Make Better-Informed Business Decisions
Banks have a lot of business decisions to make, including those involving equities trading, transaction costs, loan decisions, and more. AI technology is highly effective in predicting the market and its impact. This, in turn, helps banks to make financial decisions that will shape their institutions and their interactions with customers.
Reduce Fraudulent Activity
Fraudulent actions are never-ending - and those that engage in them are finding more and more clever ways to make them happen. But banks are finding ways to get the upper hand and protect customers from such activity, including online scams.
The response to these issues must be swift. And, with AI, fraud can be detected faster and can be more accurate so that false alerts can be avoided.
AI technology is always evolving. By embracing it and finding ways to implement it into the industry, banks can keep a forward progression in their growth and maintain a positive customer experience.