Artificial Intelligence (AI) is the backbone of all emerging sectors. In a time like this, the banking sector is trying to provide a head start to the growth of the AI revolution. The financial services sector is appealing to join the AI market to reap the privilege of reliable data and investment. Technology assists banks with enhanced customer care, fraud prevention, cost-management mitigation, and quick decision-making through AI technology. Customers have standards that cannot be ignored. Expectations for jobs to be completed quicker and with minimal mistakes. The only way to resolve the issue is the usage of AI in the regular banking business.
Indian banks are taking small measures to integrate AI technologies into their day-to-day banking network. One aspect the industry must consider is that safety and data protection in the country is always at risk. The Reserve Bank of India (RBI) ought to have a long-standing resolution to this issue by applying rules on productive technology to ensure maximum data protection and privacy.
Like many other sectors, banking also has to make major market improvements to survive in the changing market sector. This would be of no concern to anybody if the banks were to adopt the old conservative banking model today. Nonetheless, problems relating to the existing scheme, lack of data management, and rising costs have forced the banks to implement AI technologies. The banking industry relies on certain main factors to produce a successful result.
The chatbots recognize the concerns of the customers and responds most acceptably. Many of the well-known AI Chatbots in India are SBI Intelligent Assistance (SIA) from State Bank of India, which helps customers with day-to-day banking tasks such as a bank assistant, HDFC bank’s Electronic Virtual Assistant (EVA) where customers can chat with the AI device and iPal from ICICI Bank, which answers questions from Amazon Alexa and Google Assistant. Chatbots boost consumer service and render banking simpler.
AI can easily detect suspicious behaviors and transactions in the decade of widespread cyber-attacks. According to RBI’s annual report for 2019, losses owing to banking fraud have risen by 73.8% amid policy attempts to reduce them. The most surprising news is that the banks have taken about 22 months to identify the scam since it happened.
As a result of the growing innovation, fraudulence is equally emergent and is targeting various customers. Banks will implement content-sensitive AI technologies to advance surveillance. Content-sensitive AI recognizes financial abuse, senses anti-money laundering trends, and provides suggestions to the consumer.
A research study predicts that banks might save an additional US$ 447 billion by 2023 if they move to the AI banking framework. Enforcement of AI in banking eliminates the time expended by bankers on digitizing, finding, and embedding text models. It also minimizes the error rate and decreases the expense of record digitization, which, according to IBM, corresponds to more than $100 million for a single agency.
The expanded form of mobile banking and monitoring systems allows users to avoid standing in line and renders easy banking facilities. It also captures additional data on consumer purchasing trends and allows suggestions on expenditure and risk profiles. Another such program is the ‘Know Your Customer’ scheme, which keeps actual records and authentication procedures and reduces human interference. AI-based computing systems verifies documents; utilizes Optical / Intelligent Character Recognition (OCR / ICR) technologies to digitize scanned documents, and Natural Language Processing (NLP) technologies makes logical sense of them in the KYC service.
AI has lot of stronger memory than the men which supports the financial industry supports when it comes to an objective diagnosis. AI will forecast the future with observations from previously organized and unstructured data. It will even recommend the right time to be in contact with the consumer to market goods and more.
AI in the banking sector will provide higher assistance and will improve the service facilities for people. The banking sector will also help the officials to get relevant data about their customers and will help them enhance the overall experience for the customers. Data privacy, which is one of the major concerns for the financial sector can be mitigated through AI. Hence, it provides overall assistance to its users.