Artificial Intelligence is a disruptive technology that is already used in various fields like trading, healthcare, finance, production, and others. AI significantly changes the way these areas operate in a fast-developing high-tech world. The banking sector is not an exception. In fact, digital transformation in banking is rapidly developing with the golden age of smartphones, wide data flow, and acceleration of the pace of life. World-leading research and consulting companies report that Artificial Intelligence expenses in banking will amount to approximately 5.6 billion dollars by 2022, and in 15 years, the value it will add to the banking industry will exceed one trillion dollars.
Various forms of AI have already been implemented in banking, from digital wallets to voice recognition. AI is used in front-end operations such as working with customers, chatbots, applications, etc. When it comes to exchanging large amounts of data during payments and transactions, AI back-end operations take place. All these solutions have proved themselves to be cost-effective and attractive to customers. So what are the aspects of the banking sphere that AI influences the most today?
With banking app development, banks face a growing demand for flawless fraud protection. Online transactions, digital debit/credit card payments, and Forex trading become easy targets for cyber pirates. Based on the client’s location and payment history, AI detects suspicious transactions like withdrawals of unusually big amounts of money or transfers from foreign countries and blocks them until the owner of the account verifies the action.
Interaction with clients via mobile banking apps
AI makes customer services faster and more convenient. Previously, clients had to spend quite some time to find the necessary information on the bank’s website, and now this can be solved within minutes with the help of AI in mobile banking apps. Such convenience helps clients to stay connected with services offered by banks, making them available any time and in any place.
AI makes clients’ communication with banks effective with the help of chatbots. Now customers can instantly receive information on their accounts, history of payments, and other relevant data without standing in line to ask a question. Chatbots are available 24/7 and allow bank officers to pay more attention to specific customer issues thus providing better services.
Advertising to clients
With the help of AI, customers’ preferences can be noted and used for upselling and cross-selling. Thus, clients come across ads that are related to their interests. Banking apps also send information about customers’ habits to bank assistants so that they can come up with offers that are profitable for their clients.
Market tendency tracking
AI helps banks to process huge amounts of data and make forecasts regarding market tendencies, stocks, and foreign currencies. It tells market players when the best time to invest in stocks is and warns them when there is a risk. As a result, AI makes trading convenient and beneficial for clients.
Customers may have access to the best credit offers if using assessments made by AI-based systems. These systems analyze credit risks and provide customers with favorably priced solutions.
Effective use of labor force
Banking software development contributes to saving costs on the labor force. AI enables the banking sector to process increasing amounts of customers’ inquiries more rapidly, even without clients’ interaction with bank employees. Thus, the latter can fully concentrate on more difficult tasks, and their performance increases.
Clients’ identification & public opinion analysis
AI brings users of banking mobile apps another level of theft protection using voice biometrics. This technology qualitatively differs from traditional methods of identification as it recognizes the unique features of people’s voices. Additionally, AI allows the banking industry to analyze public opinion on banks to compare it with customer experience and hence predict future performances of stocks.
Credit worthiness evaluation
AI-based systems are much more precise than humans when it comes to decision-making on whether clients are creditworthy or not. Special algorithms analyze customers’ behavior based on their previous transactions and credit history. This helps banks to understand when it is safe to grant credit.
Digital payments and compliance with regulations
Nowadays, more and more payments are made online. AI is applied in digital wallets like Google Pay, which are widely used to buy goods and pay for services. AI is also useful when it comes to analyzing regulations and legislation documents to assure customers’ compliance with the laws.
The above-mentioned approaches are just a few examples of how AI influences the banking industry, making it more efficient and attractive to customers. That is why AI is worth implementing into processes when it comes to banking software development. The best way to do this is to involve software outsourcing developers like Andersen. We will help your company apply modern technologies to make greater profits.
My name is Denis; I am the Head of the FinTech department at Andersen. We are engaged in the development of IT solutions for banks, as well as investment, insurance, and FinTech companies.
If you have any questions, please contact me: firstname.lastname@example.org