Almost every industry, including banking and finance, has been severely impacted by artificial intelligence. The industry is now more customer-centric and technologically relevant thanks to the use of AI in banking apps and services.
According to a Business Insider research, around 80% of banks are aware of the potential advantages AI could bring to their industry. Another report suggest that banks are expected to save $447 billion by using AI apps by the end of 2023. These figures show that the banking and finance industry is moving quickly toward AI in order to increase production, decrease expenses, and improve efficiency.
Banks are competing to be the first in AI, and for good reason. Banks must start considering how to better serve their customers as their primary focus has shifted to them. Consumers today demand that banks be accessible whenever they need them, which implies doing it on a massive scale and being accessible twenty-four hours a day, seven days a week. Banks can accomplish this using AI.
AI can assist banks in reducing risks, tracking system flaws, and improving the security of online financial transactions. AI and machine learning can quickly spot fraudulent activity and alert both the customers and banks.
In order to make better, safer, and more profitable loan and credit choices, banks have begun implementing AI-based solutions. Customers with little credit history can use an AI-based loan and credit system to analyze their patterns of behavior to assess their creditworthy. Additionally, the technology notifies banks of certain actions that can raise the risk of default. In short, these technologies are significantly altering the way that consumer lending will be done in the future.
As we can see, due to the numerous advantages that this technology provides, banking and AI go hand in hand. Forbes reports that 65% of senior finance management expects AI and machine learning to improve banking. To provide consumers with innovative experiences and top-notch services, all banking institutions must invest in AI technologies.