Artificial intelligence is one of the most hot-button topics these days. Countless industries are beginning to utilize AI tools in the interest of becoming more agile and responding to market demands more quickly and efficiently – and the finance realm is no different.
In fact, AI is becoming a major buzzword in the financial services industry. Banks are beginning to utilize these kinds of technologies to make sense of all the customer data flowing into their organizations, which helps to capitalize on key insights and create better business practices by addressing industry concerns as they come up. It's becoming clear that banks will need to create even stronger AI strategies in the near future in order to deal with the rapidly changing regulatory environment and customer demand.
"Banks are already heading in the direction of AI with quite a lot of success."
The role of AI in banking today
Future-focused banking institutions need to get on board with AI sooner rather than later, as the industry moves to embrace smart technologies and customer bases become more familiar with these tools. Many banks are already heading in that direction, with a great deal of success. According to Banking Technology, as of June 2016, Sweden's national bank utilized an application that handled more than 30,000 customer conversations per month, with the ability to understand more than 350 different queries – and it resolved issues 78 percent of the time.
Co-publisher of The Financial Brand Jim Marous noted in early January 2017 that artificial intelligence was set to explode in the coming year, and the numbers seem to corroborate that claim. A survey conducted by Narrative Science and the National Business Research Institute found that 32 percent of financial services executives were using AI technologies within their operations – tools like predictive analytics, recommendation engines, and voice recognition and response.
In other words, AI technologies are increasingly important for today's banking institutions. To keep up with customer demand, solve issues more quickly, price loans more efficiently and maintain compliance with a range of national and international regulations, it's critical that organizations use their data in the most effective way. Artificial intelligence tools are making that possible.
Keeping pace with innovation has never been an easy task, and the banking industry has its work cut out for it as the world continues on its path toward more automation and AI tools. American Banker contributor Christine Duhaime noted that AI and robotic banking are set to disrupt the industry. The emergence and continual growth of big data has created greater and growing demand for solutions that can help organizations make sense of that information via predictive and prescriptive analytics strategies.
"Banks need to have the right tools to help them make sense of their data."
"The promises of AI and robotic banking are impressive," Duhaime wrote. "The ability to have core banking functions run entirely by machines that automate functions and learn to self-improve will transform bank back offices and systems. If combined with the ability to interact with customers – including learning their typologies and meeting their banking needs – the potential is incredibly powerful and lucrative."
In addition to keeping up with the current trends in AI and making sure they're collecting all the data they can, banks need to have the right tools to help them make sense of that data. DealPoint from Brilliance Financial Technology combines data analytics with intuitive insights in order to drive increased margins and ensure regulatory compliance, along with better pricing transparency across banking products. It allows the pricing and approval process to take advantage of automation, providing banks with the tools they need to embrace a digital transformation strategy and remain competitive in the steadily more automated banking world.
Get in touch with the banking technology experts at Brilliance today for more information about DealPoint.