Financial institutions have now started to explore the way in which artificial intelligence could be used to reduce fraud, decrease costs, enhance revenue, and improve the overall customer experience. While there do exist a lot of challenges, organizations of all sizes should already start to invest, partner with experts, and learn about Artificial Intelligence. This will allow organizations to reap the most benefits.
The business implications of Artificial Intelligence is something that is widely being talked of nowadays. Credit unions and banks, on the other hand, are becoming aware of the fact that Artificial Intelligence technology carries great potential. As a result of this, they have already started exploring the way in which Artificial Intelligence could be used to streamline the operations, enhance the customer experience, and to improve the products.
Today, Artificial Intelligence can be said to have three primary domains of applications. These include cognitive engagement, cognitive insight, and cognitive automation.
Cognitive automation: Machine learning, robotics process automation, and natural language processing are the primary domain of application.
Cognitive engagement: The next level of Artificial Intelligence involves cognitive systems that make use of cognitive artificial intelligence technology in order to engage. These systems unlock the true power of unstructured data and offer a personalized tool for engagement between customers and banks. As a result of this, new revenue streams also get unlocked.
Cognitive insights: The other domain is of cognitive insights. This domain refers to the concept extraction and extraction of relationships from different streams of data in order to generate relevant and personalized answers that are hidden in a large amount of unstructured and structured data. Using cognitive insights, relationships between masses of data can be understood and key patterns can be detected in real time.
Financial service organizations typically tend to have a large number of data sets, with a lot of experience of using analytical tools. As a result of this, they seem to have a natural head-start with artificial intelligence applications. These organizations now seem to realize this already.
This is because credit unions and banks all over the globe are making use of Artificial Intelligence-based algorithms, in order to find assistance with a number of customer-facing and internal processes.
At the same time, customers also seem to be cooperating a lot, as many are willing to share their personal insights in case a value trade-off exists. According to a survey, more than 67% of people will allow banks to access more personal data. However, 63% of people want rather tailored advice. These people, often ask for priority services that include monetary benefits such as competitive pricing, or expedited loan approvals in return of the information shared with the bank.
There are a wide number of applications that Artificial Intelligence has in the banking sector. These applications include:
Detection of fraud
Meeting regulatory requirements
Lowering the costs and increasing the revenue
Improved customer experience
Boost up the customer engagement
While the use of Artificial Intelligence in the finance industry is not free from strategic challenges, it does certainly carry great potential.