2. Artificial intelligence
The simulation of human intelligence processes by
machines.
Intelligence demonstrated by computers.
AI refers to computational tools that are able to
substitute for human intelligence in the
performance of certain tasks
3. History of AI in Banking
The first bank in the world to adopt Al (Artificial
Intelligence) can be traced back to the 1980s. The Bank of
Scotland implemented an Al-based system called "Fraud
Detection System" in 1985 to detect potential fraudulent
transactions. This system utilized a neural network to analyze
patterns and identify suspicious activities, marking an early
application of Al technology in the banking sector
4. Scope of AI
The main aim of AI in the banking industry is to assist the
customers by keeping their preferences a priority.
Additionally, AI plays an essential role in assuring that
customers are happy with the services offered by the bank.
It also plays a crucial role in risk management by preventing
fraud and fighting money laundering in real-time.
1: Process optimization-In claims processing-In mortgage
processing-In customer service-In operations-
2: Credit risk management
3: Fraud and money laundering-In fraud-In money laundering
4: Trading and wealth management-Robo advisors-Trade
channel optimization-Stockmarkets
5: Marketing
6: Security and compliance-Security-Compliance
5. APPLICATIONS OF AI IN
BANKING
CYBERSECURITY AND FRAUD DETECTION REGULATORY
COMPLIANCE
CHATBOTS AND CUSTOMER SERVICE PREDICTIVE ANALYTICS
LOAN AND CREDIT DECISIONS DATA COLLECTION AND
ANALYSIS
8. Initialization
Credit scoring
Clerical
automation
General
Digitization
Continuation
Offer+Pricing
Optimization
Introducing
Upcoming
Advanced
Recommenders
Full ABA Decisioning
Automated Portfolio
Management
9. CHALLENGES FACED BY BANK USING AI
1.Data quality and availability
2.Data privacy and security
3.Regulatory compliance
4.Explainatory and transparency
5.Talent and expertise
6.Ethical consideration
7.Change management and cultural
shift
10. Why must banking sector embrace AI-FIRST
1.Enhanced efficiency
2.Improved customer experience
3.Fraud detection and prevention
4.Risk assessment and credit scoring
5.Predict analysis and investment strategies
