Artificial intelligence is a technology breakthrough that is part of an average person's everyday life. Our smartphones use AI for their digital assistants like Siri and Cortana. Amazon is using AI to predict what products you need or may be interested in when you shop. Listen to Pandora? The music you are hearing is based on an AI algorithm. And Facebook is using AI facial recognition to suggest "tags" when you upload a picture. Every industry and consumer is going to be impacted by AI, and banking is no exception.
In a previous piece, we discussed the role of artificial intelligence in the banking industry as it stands today. Here, we delve into the future of banking and see how AI will impact the industry in the coming years.
Artificial intelligence now…
The banking world is using AI technologies in myriad ways. For instance, banks are using AI to enhance fraud detection activities on credit cards. AI tools dramatically reducing error rates, as well as cut down on the time employees must dedicate to these
In addition, AI is having a key impact on how banks interact with and gain insights from their customers. Intelligent digital assistants can process big data much more quickly and extract the information necessary to better serve clients, accurately assess risk and assign interest rates. What's more, AI-based keyword recognition and speech analytics capabilities to guide client interactions and improve the customer experience.
"Smart machines and technology can turn data into customer insights and enhance service provisions, bringing the digital experience closer to the human interaction for consumers," stated Banking Tech contributor Gideon Hyde.
AI in the future
Bank Innovation contributor Philip Ryan proclaimed that 2017 would be the year of AI in banking, and for good reason. AI can help improve the customer experience without compromising privacy, for one. Being able to accurately assess customer data is also helping banks with fraud risk management activities.
"There is a series of disruptive changes taking place now that is dramatically reducing the fraud rate," Arif Ahmed, senior vice president of payments innovation for U.S. Bank, told Ryan.
Forbes contributor Steve Culp noted that AI is already becoming a major disruptive force in the finance departments of the banking world. In the coming years, as well, AI will be able to transform central functions in finance, like intercompany reconciliations, and help banks with strategic functions like financial analysis, asset allocation and forecasting, thanks to the speed and accuracy with which AI tools can assess portfolios.
It's going to be critical for banks to get ready for the emergence of AI. Investing in technology and innovation is one of the most important aspects of running a successful financial services operation in today's world, and keeping eyes and ears open when it comes to these kinds of artificial intelligence solutions is key.
Counts to have the right tools
The future of AI in banking is bright, and thanks to tools like DealPoint, banks and fintechs alike can take the big data being gathered and transform it into key business insights. Gone are the days when bank managers had to consult pages and pages of Excel documents and trudge through mountains of data – with DealPoint, analysis happens quickly and effectively so loans can be accurately assigned.
No matter how banks decide to utilize AI technology in the coming years, one thing is certain: AI tools will be a part of the industry, because consumers and banking professionals alike are becoming more excited about this technology as it grows more useful for their everyday and professional lives.
For more information about how fintech and banking intersect and to talk about how tools like DealPoint will make a difference in the coming years, contact the experts at Brilliance Financial Technology today.