The global lockdown in 2020 ushered in a new era for banking. Contactless payments, mobile banking, and virtual banks are driven by the innovations of artificial intelligence (AI) for fintech. AI in banking welcomes next-level customer support and process automation while boosting overall growth.
80% of financial institutions report being aware of the potential of adopting artificial intelligence in banking and managing finances, with 61% anticipating AI to be at the forefront of fintech. Only 45% of the institutions are adopting AI solutions for everyday banking, partly due to AI still being in its early development stages and the general lack of understanding of how artificial intelligence and machine learning can be incorporated into the workflow.
Do Banks Need AI?
As individuals spend more time interacting with the digital world, it only makes sense for banks to establish their digital footprint. Aside from expanding access across brick-and-mortar and digital banks, AI also enhances customer support and automates processes to cut down workload.
Leading figures in banking and finance are taking the leap in collaborating with experts for AI solutions. JPMorgan Chase, for example, embraced the potential contributions of artificial intelligence, cryptography, and machine learning in the industry.
How AI Makes Sense of Business Data for Banks
In a survey conducted by PricewaterhouseCoopers (PwC), a meager 37% of financial institutions refer to data and insights for their next business decision. AI can relieve human agents of the tiresome process of managing databases and analyzing customer behavior. With AI, you are capable of unlocking valuable insights from data, both old and new.
AI-driven analytics saves you time and money on sorting through data of varying structures. These data are central to predicting your customers’ behavior and optimizing workflow across departments.
What Is the Value of AI in Banking and Fintech?
67% of the fintech market anticipates AI to take over the industry in the near future. Leveraging artificial intelligence allows financial institutions to redistribute resources, streamline customer service operations, and enhance the automation of processes. While a full AI-powered banking experience has yet to debut, various institutions are enhancing their existing AI solutions.
Artificial Intelligence in Front Office Banking
Aside from exceptional customer service, customers are also on the lookout for personalized solutions. In the United Kingdom, 56% of customers report that they have no access to expert advice in managing their finances. Robo advisors, a cost-effective and efficient AI solution, address this issue by assessing an individual’s financial health and tailoring a plan to grow their investment portfolio.
Artificial Intelligence in Middle Office Banking
Detecting suspicious activity is the main role of AI in the middle office. Every year, at least US$800 billion is lost to money laundering. With the help of AI’s smart detection, banks can improve their regulatory processes as needed.
Lead With the Power of AI
Financial institutions are taking interest in AI as it not only cuts down operational costs but also reduces the likeliness of errors. Explore how your company can reap the benefits of AI solutions with BBI today.