Nowadays, it hardly seems a day or week goes by without taking the name of a company that joins the rank of organizations using their own virtual assistants. From news agencies to normal stores, each is getting driven by some kind of artificial intelligence. So, it is not surprising to see the baking sector whose traditional call centers are getting replaced by AI assistants.
AI Fundamentally New To Banking Sector
Despite the obviousness of the trend, the introduction of robotics in the banking industry will have a great financial effect on other fields of apps. This is what expert analyst of the banking sector feel. Now sometimes the AI in banking can be something that is fundamentally new for various industries.
However, to the banking sector, it isn’t. Various analysts and researchers feel that banks were the primary industry who were using this robotic process automation in banking; where the first neural network for automatic lending came into the industry about twenty years ago.
In addition, it might be important to note that the latest technology in artificial intelligence is evolving in an unprecedented way. The interim actions of this particular banking transformation can be quite impressive.
Various reports suggest that about 80% of the banking sector representatives feel that technology will surely advance where to an extent AI in banking will work in the financial organization along with having living individuals as employees as well as reliable advisors.
Benefits Of AI
Various industry experts feel that the benefits of large-scale introduction of robotics in the banking industry will really be fruitful for banks and companies in the financial sector. As per the research which was conducted in the field of financial technologies, in the USA along, latest technology in artificial intelligence will provide financial institutions and banks with a huge amount of savings, i.e. about 30% till 2030 or somewhat more than $1trillion.
Here, the components of the impressive figure will show how much effective the latest technology in artificial intelligence is. Various reports suggest that the amount of saving in the front-office will be about $480 billion. This is somewhat half of the aforesaid sum, which is possible due to the reduction in the amount of specialist present insecurity, cash operations, retail banking network, and various other staff.
In addition, another $400 billion will be saved by using the robotic process automation in banking for most of the middle-office related works like technologies used for identifying customers and verification like AML/KYC along with other forms of data processing. Lastly, the AI in banking for the back office which is related to accounting and regulatory units will simply lower the expenses that bank incurs to roughly about $200 billion.
Impact Of AI In Banking
1. Personalized Financial Services
AI will expand the gamut of financial services. This is possible by the means of consumer financial services. Nowadays, consumer financial services will keep the consumers as well as their unique demands right at the core of their best-optimized offerings.
Moreover, robotics in banking industry makes it quite possible to provide consumers with a good amount of personal financial concierge. Now this will automatically allow them to decide and find out the suitable style of spending, making saving as well as investing which is simply based on their personal goals and habits.
The presence of the latest technology in artificial intelligence for finance will make it very much possible to create intelligent products. And most importantly these products will help you to learn from the customer’s financial data as well as determine what might work for them, what won’t and even assist them to track their financial activities in a much better way.
2. Reducing Cost & Finance
This can be something that most of us experience and sometimes agree with. The robotic process automation in banking for the financial sector has now become an automated process. Even it has drastically lowered the cost of the serving customers. So, besides making the financial services cheap (i.e. by reducing the cost of the financial services), it has even made it quite convenient to avail too.
Now through many digital servicing channels, AI is simply proving its efficiency in attracting a huge section of the population towards the best financial services. This is quite helpful especially for those services which were found to be cumbersome, time-consuming and expensive.
3. Latest Management Styles
The best part of the AI in banking is that it is opening up brand new avenues for banking as well as insurance leaders who want to seek a good amount of advice. No more are the major financial expertise limited to the opinions of humans, especially with regard to making forecasts and recommendations. With the emergence of robotics in the banking industry and finance, financial leaders and experts can ask questions which are pertinent to their business. Also, these machines can even analyze data and assist them to make all kinds of data-driven management decisions.
4. Wealth Management For Clients
One of the major banking areas where there is a huge amount of investment in the latest technology in artificial intelligence is wealth management. Here both newcomers and incumbents are able to know that the digital shift occurring in the banking space will simply affect this sector. Industry heavyweights have started to acquire tech start-ups using special focus on automated analysis of huge amounts of unstructured data.
Here, the purpose is to find out the typical behavioral patterns. Experts are hoping to create robotic process automation in banking that can easily provide insights on servicing their high-net-worth clients. Frankly, by automating huge parts of the wealth management process, they can easily provide tax-optimized and personalized investments to clients, having less in investable assets compared to what they usually qualify for professional wealth management.
5. Fraud Scenarios
Using AI, one can easily simulate the umpteen situations whenever there are any cybercrimes or fraud activities taking place. One important thing to note is that AI in banking and finance follows somewhat a proactive approach in making the financial services breach-proof as well as environmentally safe.
Previously, designers of the financial service system had to wait for the incidence of fraud to occur. But now the waiting period is destroyed. AI is providing extensive assistance in the field of finance for securing its products and services through a continuous understanding of human psychology.
Frankly, AI in banking and finance is all about continuous learning as well as re-learning of data, patterns, and developments present in the financial world. The best part of using the latest technology in artificial intelligence is that it provides flexibility in creating the current line or system of financial products as well as services.
So, it means that one doesn’t need to begin from scratch. Also, there can be an improvised way of making the offering better over time. Once robotics in the banking industry is introduced, it will ensure that the financial services are updated and ready for facing the market. So, no doubt, AI in banking and finance invaluably contribute to the financial industry. So, over time, AI will not only revolutionize the financial and banking sector but will become the industry itself.