Five reasons the banking industry should embrace AI

From the use of pneumatic capsule transportation in 1836 to the launch of Bitcoin in 2009, the banking industry has always closely aligned itself with the latest technology. Little wonder then that artificial intelligence (AI) is being increasingly rolled out to help banks improve their operations, save time and money, and better serve customers.

The technology clearly has almost limitless potential and fresh ideas will continue to emerge from ongoing research and analysis. Let’s look at five key areas where AI can benefit the banking industry.

1. Improved customer service

Most customers will now be familiar with some form of AI-powered chatbots, either running out of hours services, or acting as a first step of security and identification.

2. Enhanced fraud detection

3. Streamlining the underwriting process

4. Greater operational efficiency

By improving operational efficiencies, businesses in the banking sector can improve their compliance risk, accuracy and the speed of their processes.

5. Personalised services

Customers increasingly require a tailored product or service that matches their individual needs. In fact, the latest Zendesk CX Trends Report shows that 72% of banking customers rate personalisation as ‘highly important’ for financial services. The same report shows that 77% of business leaders recognised that better personalisation leads to increased customer retention and lower acquisition costs.

AI can be hugely beneficial in this area — being deployed to analyse customer data, identify customer needs and preferences. This can provide valuable information for banks to act on, improving customer satisfaction and loyalty while increasing retention and driving revenue.

Whether it’s improving customer service, enhancing fraud detection, or increasing operational efficiency, AI technology is providing viable solutions to the challenges the banking sector faces.

A great place to look for the future of AI is the start-up world, where innovative entrepreneurs are continuing to develop unique and viable products that push the capabilities of the technology. As AI continues to evolve, those that keep themselves at the forefront of developments will be better positioned to compete in an increasingly competitive marketplace.

How do you think AI will impact the banking sector over the coming 12 months?

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