Artificial intelligence technologies aim to revolutionize banking by providing 24/7 customer service through chatbots, improving customer experiences and increasing operational efficiency. Chatbots allow customers to access services anytime without human banking hours limitations. AI also helps banks comply with regulations by monitoring transactions and customer behaviors to detect fraud and money laundering. Machine learning algorithms further aid regulatory compliance by identifying patterns instead of following specific rules, enabling banks to minimize risks.

1. 11/30/2020 LinkedIn
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Benefits of AI in the banking
industry-1
The banking industry is primarily a world of computers and networks. It’s
boggling that the bulk of the world’s wealth is stored in databases, and
transactions are simply the exchanges of information over networks.
As impressive — or scary — as that might sound, artificial
intelligence technologies aim to further revolutionize the way banking is
done and the relationships between banks and their customers’ experience.
Always-on chatbot sidesteps banking hours
There’s a reason why people deride banking hours. Banks never seem to be
open when you need them most, such as later in the day or on holidays and
weekends. Our money doesn’t sleep, so why should the banks?
Fortunately, AI in banking is one of the most impactful applications of
artificial intelligence through the use of conversational assistants, or
chatbots, to engage customers 24/7.
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2. 11/30/2020 LinkedIn
https://www.linkedin.com/post/edit/6739048211362783232/ 2/3
Customers are increasingly comfortable with chatbots handling many things,
even private conversations regarding bank transactions, bank services, and
other tasks that don’t necessarily require human intervention. For example,
Bank of America introduced Erica as a virtual assistant to help with
customer transactions, and that has shown significant positive ROI. Many
banks have quickly followed suit, although some with mixed results.
In addition to fielding customer service inquiries and conversations about
individual transactions, banks have been finding good results in using
chatbots to make their customers aware of additional services and offerings.
For example, business customers might not be aware of merchant services
and loan offerings that can help resolve payment or credit issues. AI-based
assistants aware of customer patterns can engage the customer at appropriate
times, such as when they are on the bank site or mobile app for more
successful conversions and customer experiences.
Furthermore, banks can now segment customers individually, rather than the
traditional generalized customer buckets. By using AI-based pattern
matching and behavioral analysis, banks are able to make the right offer or
suggestion to the right customer, reward their best customers, and respond to
immediate finance-related customer service needs.
AI in banking aids regulatory compliance
Banking is one of the most highly regulated sectors of the economy, both in
the United States and worldwide. Governments use their regulatory authority
to make sure banks have acceptable risk profiles to avoid large-scale
defaults, as well as to make sure banking customers are not using banks to
perpetrate financial crimes like fraud and money laundering. As such, banks
have to comply with myriad regulations requiring them to know their
customers, prevent money laundering, uphold customer privacy, monitor
wire transfers, and comply with a stack of additional regulations.
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3. 11/30/2020 LinkedIn
https://www.linkedin.com/post/edit/6739048211362783232/ 3/3
Banking regulatory compliance has significant cost and even higher liability
if not followed. As a result, banks are looking to smart, AI virtual assistants
to monitor transactions, keep an eye on customer behaviors, and audit and
log information to various compliance and regulatory systems.
Big-data-enhanced fraud prevention is already making a significant impact
on credit card and loan underwriting processes, and the addition of machine
learning algorithms and cognitive technologies is helping those systems stay
ahead of the game, as the nature of fraud continues to evolve. By looking at
customer behaviors and patterns instead of specific rules, AI-based systems
help banks stay on top of their regulatory compliance while minimizing
overall risk.
Using AI in customer support channels boosts operational efficiency.
To be Contd…
WRITTEN BY
Venkat vajradhar
We USM Business provide unique edge solutions related to AI
services, Ml Services, Data Quality Solutions, & Permanent
staffing solutions.https://www.usmsystems
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