How Artificial Intelligence Is Changing The Banking Sector

How Artificial Intelligence Is Changing The Banking Sector

By Ram Punamaraju, CEO, Yitsol Technologies

Technology is the core of almost every task we undertake even on a minutelevel,and industries are taking up the cause of automation. This relegates technology’s positionfrom being just an enabler into a disruptor of traditional ways, which cannot be overlooked. Transformational strategies require to be molded around the benefits of technology, to leverage maximum profitability. Sector-wise, technology is riding the horse of fortune and guiding companies to prolific growth, with ease.

If one talks about the banking sector, the adoption has been gradual, when compared to other sectors.  This can be due to the fact that banking is still a manpower-led sector, with operations that require human involvement. Yet, technology is wily compatriot that is steadily seeping into the ranks, efficiently cutting down on redundant tasks. This makes the operations more hassle-free and impactful, creating a leaner system to work on. AI, cloud computing, mobile-first and digital dashboards are already the norm, as new technologies are being adopted.

These are some of the areas of Artificial Intelligence technology in Banking and Finance:

Personalized Financial Services:

Personalized connect will reach new heights as automated financial advisors and planners provide expertise in making financial decisions. They analyze market temperamentagainst the user’s financial goals and personal portfolio, and offer recommendation regarding stocks and bonds.

Smart Wallets:

Digital wallets are touted as the future of real-world payment technologies, with major players like Google, Apple, Paypal and others, jumping on the bandwagon and developing their own payment gateways. This decreases the dependence on physical cash, thereby expanding the reach of money to greater levels.

Underwriting:

The insurance sector is also coming up with a storm as they are moving towards congruent automation. By utilizing AI systems that automate the underwriting process, the organizations come armed with more granular information to empower their decisions.

Voice Assisted Banking:

Physical presence is slowly fading away as technology empowers customers to use banking services with voice commands and touch screens. The natural language technology can process queries to answer questions, find information, and connect users with various banking services. This reduces human error, systemizing the efficiency.

Data-driven AI applications for lending decisions:

Applications embedded in end-user devices, personal robots, and financial institution servers are capable of analyzing a huge volume of data, providing customized financial advice, calculations and forecasts. These applications can also develop financial plans and strategies through research, regarding various customized investment opportunities, loans, rates, fees, etc and track the progress.

Customer support:

As speech processing and natural language processing technologies mature, we are drawing closer to the day, when computers could handle most customer service queries. This would mark an end to waiting in line and hence result in happier customers.

 Digitalization instead of branch lines:

Banking is a lengthy process, with past records of long queues and sluggish response marring the productivity. Even opening a bank account was viewed in negative terms as harried consumers would run pillar to post, while getting the necessary documentation complete.  Digitization of documentation eases that pain and creates a comprehensive platform, where the consumers and providers connect.

Blockchain hastening payments:

The customer base that banks serve is going through a major shift in terms of buying behaviors and preferences, driven by the digital revolution, particularly social media and mobile.  An increased demand for more choice and control in how they interact with a bank is on a rise. Sluggish payment processes will be a thing of the past as Blockchain is set to inculcate the advantage of real-time payment process, hastening up the procedure of payment, thereby increasing support and satisfaction.

Conclusion:

A digital boom is certainly taking place across all segments of banking and we are eagerly awaiting the other bracing changes that this segment would bestow upon us. The factors may differ from bank to bank yet the crux of the motion would remain skewered towards technology at large.

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