Applications of AI in the Banking Sector

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Day by day the importance and need of Artificial Intelligence in businesses, such as security, healthcare, financial sectors, etc are increasing. The use of Artificial Intelligence (AI) and Machine Learning (ML) in the banking sector is becoming a need. Cutting-edge technologies have been an aid for banking space to increase efficiency, attain higher accuracy, and solve resource-intensive tasks, that are otherwise completed by humans.

The implementation of artificial intelligence (AI) in the banking sector has helped in the financial activities of banks and greater accuracy in the financial operations of the bank. It plays a vital role in data collection and in analyzing the data to make very crucial decisions. AI can also be used in checking customer creditworthiness, document verification needs analysis, segmentation, and also in the secured transaction.

When an AI deployment happens, both the customer and banks benefit from it. AI creates a win-win situation for both. An AI-driven bank is considered to be cost-effective, accurate, customer-friendly, and fast. Artificial intelligence helps banks to analyze large data very quickly which results in credit scoring policies that have the potential to handle the credit inputs, assessment of credit risk at a lower cost for individuals, and increasing the number of individuals for whom credit risk can be measured.

As said earlier, today artificial intelligence is becoming a need for businesses in fields such as security, healthcare, transportation, retail, and financial sectors. Reports of Intel India show that by 2020 almost 70 % of organizations would be working with the help of Artificial Intelligence.

There are challenges in implementing artificial intelligence in banks. One of the biggest challenges is the scarcity of trained human resources, existing resources may not be trained or familiar with the latest tools and applications. The second challenge is, AI is a threat to redundant employees in the banking sector. Large adoption of artificial intelligence in the bank sector may lead to the unemployment problem in the banking sector.

CEO of Finway Capital Rachit Chawla says that the company is India’s first NBFC that ensures 24X7 of Turn Around Time (TAT). Simple documentation process and instant approvals through the fastest online gateways enable Finway Capital to ensure the borrowers with easier and quicker access to funds. He also added that Finway Capital is a technology-friendly company that uses AI and blockchain as an alternative to CIBIL. Through this, he intended to say the role of the company in the implementation and adoption of AI in the banking or finance sector.

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