Life is all about keeping pace with time and evolving and changing yourself with the passage of time. If your footsteps match to that of the times’, you’re in; and if they don’t, you’re out. Following the mantra of “Change is the only constant,” Banks in India are now warming up to the idea of Artificial Intelligence and are discovering the kind of potential it holds for bettering consumer experience in the financial sector.
So, what exactly is Artificial Intelligence and what is the hype about?
One of the founders of Artificial Intelligence (AI), John McCarthy, defines AI as the science and engineering of inventing intelligent machines, specially intelligent computer programmes. In simpler words, it is a technology which involves making the machines learn from the users’ actions over a period of time and make their lives easier by taking decisions for them. That is, the machines will be able to do the designated task without any manual human intervention whatsoever.
AI in financial services- Why now?
Even though AI has been around the block for quite sometime now, it’s potential in the financial services has been recently realised. A variety of factors are contributing towards introducing AI into the financial sector. The current digital wave in the banking sector, the fintech’ sectors’ strategy towards low-cost products, and the open source system and it’s accessibility are some of the main factors contributing towards the adoption of AI in financial services.
AI in financial services
Even though the technology has just taken its baby steps in the Indian financial services sector; globally, it is being considered to be used for risk management, compliance, liquidity risk and anti-money laundering etc. For instance, selling derivatives to senior citizens in India is a huge task as a majority of them are very conservative. Here, the machine can help in telling which product is ideal for whom.
AI can be of a major help in bettering customer service. For example, currently, a lot of airports in Europe have virtual customer assistance at their gates. In this, the 3D holographic images of security people help the passengers in passing through security, and the international arrival gates and the UK border.
In fact, a number of fintech companies are developing mobile applications based around Artificial Intelligence. Experts suggest that there are various user content that one can build an Artificial Intelligence chat app on or just to search for information.
AI and banking
AI has a lot of potential when it comes to banking. Banks can make use of Artificial Intelligence for authenticating transactions, access to special rooms, floors or buildings, virtual personal teller assistants, surveillance in locations such as ATMs and security for public safety etc.
Banks are making use of AI in Virtual customer assistance for engaging with them in speech or text in their normal-language, learning from their activities/interactions, providing suggestions fit to them and understanding the their behaviour and taking action accordingly.
Singapore-headquartered DBS Bank Ltd. April launched Digibank app makes use of Artificial Intelligence for virtual assistance via speech and text in order to reply to the queries of the users.
In addition to all this, banks can also make use of the AI for virtual personal assistants. The machine will be responsible for studying behaviour and content, create and maintain data models (which it can use as a reference for drawing conclusions about contexts), people and content, predict the needs of the user, and then act on the behalf of the user. Currently, data analytics is used by companies for the above stated purpose. With the adoption of Artificial intelligence, the machine will be responsible for doing a job from start to end. As far as payments are concerned, it can also certainly used to complete the transactions. In fact, many fintech companies are currently working with various banks to make this available.
The future holds a lot of collaborations between AI and the banking sector. AI has the potential of completely transforming the way in which the interactive voice response (IVR) works for banking.
One of the best benefits that AI is capable of providing to banking is personalised and extremely intuitive customer experience.
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