Global spending on artificial intelligence is set to increase dramatically by 2024. Leaders in all industries, including banking and financial services, are rapidly discovering the incredible value of AI. By leveraging this technology, financial institutions can better manage privacy and fraud, increase cost savings, and improve the overall customer experience.
According to a study by the Organization for Economic Co-operation and Development, global spending on artificial intelligence will increase from $50 billion in 2020 to $110 billion by 2024. It’s not hard to see why: think about the usefulness of customer service bots or how optimizations can reduce operating expenses. Financial institutions have noticed this and are adopting AI at a rapid pace.
Machine learning, computer vision, and natural language processing are just a few of the AI technologies that banks and financial institutions can use to gain a competitive advantage. Almost 60% of major financial institutions have at least one built-in AI capability, reports McKinsey & Company. But how can you benefit from this ever-evolving technology? Here are three ways to use AI to power your business:
- Better manage confidentiality and fraud.
A recent study revealed that a significant amount of Paycheck Protection Program Loans in the Age of the Pandemic were potentially fraudulent. And when regulators like the Bank of England drown in 65 billion data every year, it is difficult to tackle the problem. Fortunately, recent advancements in AI help you filter data, find patterns, and detect fraud in real time.
“As a CFO, protect your business and its customers from fraud and privacy breaches while complying with ever-changing regulations can be a full time jobsays Beverley McCarthy, program manager for strategic insights at MindBridge, the world’s first and only AI-powered auditing solution that protects others by addressing the human need to understand critical business data. . “AI can help support this burden because it uses advanced pattern recognition to identify any anomalies in a dataset, making AI tools much better at detecting fraud and mitigating potential risks.” Don’t overload your team members with too much data. By leveraging AI, you can better control privacy and fraud. - Increase your savings.
AI is estimated to save the banking sector $447 billion by 2023. How? Robotic process automation software, optical character recognition, and other artificial intelligence technologies lighten the load on human workers, allowing you to do more with less. With AI, Accenture believes you can process between two and five times the volume of interactions or transactions with the same number of team members.
“The banking sector is largely digital in operation, but it’s still riddled with human processes that are sometimes cumbersome with paperwork,” says Ronald Schmelzer of Cognilytica. “In these processes, banks face significant operational cost and risk issues due to the potential for human error.”
By investing in AI, you can help your staff be more productive without sacrificing quality. In fact, the quality of your facility’s work could improve through fewer manual errors. - Improve your customer experience.
According to McKinsey & Company“Banks that leverage AI and analytics to deliver intelligent services and superior experiences are likely to increase customer satisfaction and loyalty. Research shows that the stronger the experience, the more the customer is satisfied, the more likely it is that the bank will generate higher revenues.”
Traditional banking experiences simply aren’t enough to satisfy today’s customers. For example, long customer service wait times and limited hours may cause people to consider competitors. Fortunately, AI relieves these problems. Chatbots are always available and are becoming more sophisticated every day. Not only are they able to access accounts and resolve common payment issues, but they can also effectively sell to customers without involving human staff.
However, commercial chatbots are rudimentary compared to recent breakthroughs in modern natural language generation. An advanced AI chatbot even has a former scientist at Google believe he is sensitive. If you invest in AI technology and perfect it for your institution, you can personalize the entire customer journey and increase customer lifetime value.
AI is not new to banking; he has been part of both industry and financial regulation for decades. However, it begins to grow at a rapid pace, drawing a line between haves and have-nots. If you want to stay ahead of the competition and reap the benefits of better privacy and fraud control, increased cost savings and better customer experience, you need to take advantage of the modern AI capabilities as soon as possible.
Written by Rhett Power.
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