How Financial Institutions Leverage AI to Stay Ahead of the Competition

Worldwide spending on artificial intelligence is expected to increase significantly by 2024. Leaders in every industry, including banking and financial services, are quickly discovering the incredible value of AI. By utilizing this technology, Financial institutions can better manage privacy and fraud, increase cost efficiency and improve the overall customer experience.

According to research from the Organization for Economic Co-operation and Development, worldwide spending on artificial intelligence technology will jump from $50 billion by 2020. $110 billion by 2024. It’s not hard to see why: consider how helpful customer service bots can be or how optimization can reduce operating costs. Financial institutions are aware of the rapid adoption of AI.

machine learning; Computer vision and natural language processing are just some of the AI ​​technologies that banks and financial institutions can use to gain a competitive advantage. Almost 60% of top financial institutions A report by McKinsey & Company included at least one AI capability. But how exactly can you benefit from this evolving technology? Here are three ways you can use AI to improve your business.

  1. Better manage privacy and fraud.
    A recent study found a significant amount. Pandemic Paycheck Protection Program loans Potential fraud. When competitors like the Bank of England are sinking 65 billion pieces of data Every year it is difficult to solve this issue. Fortunately, Recent advances in AI have enabled us to filter data; It helps you spot patterns and detect fraud in real time.
    “When you’re a finance director, protecting your company and its customers from fraud and privacy breaches is subject to ever-changing regulations. It can be a full-time job.Beverley McCarthy, program manager for strategic insights at MindBridge, said the world’s first and only AI-powered auditing solution protects others by meeting the human need to understand business data. “AI can help with the workload as it uses advanced pattern recognition to identify anomalies in a dataset, and AI tools can help detect fraud and mitigate potential risks.” Don’t overload your team members with data. By leveraging AI, you can better control privacy and fraud.
  2. Raise your costs.
    AI is predicted to save the banking industry. 447 billion dollars How about 2023? robotic process automation software; Optical character recognition and other AI technologies lighten the burden of human labor and let you do more. With AI, Accenture predicts you can. Between two and five times The same number of members and volume of interactions or transactions.
    “The banking industry Mostly digital operationBut we’re still dealing with human-based processes that are sometimes paper-heavy,” says Ronald Schmelzer of Cognilytica. “In these processes, banks face significant operational cost and risk issues due to the potential for human error.”
    By investing in AI, you can help your employees be more productive without compromising quality. In fact, Fewer manual errors can improve the quality of your organization’s work.
  3. Improve your customer experience.
    According to McKinsey & Company.” Banks that leverage AI and analytics to deliver smarter services and superior experiences stand to increase customer satisfaction and loyalty. The stronger the experience, the more satisfied the customer. The more the bank earns, the more likely it is.”
    Traditional banking experiences are not enough to satisfy today’s customers. for example, Fri customer service and limited hours can motivate people to consider competitors. Fortunately, AI alleviates these problems. Chatbots are always available and they are getting more sophisticated every day. Not only can they access accounts and resolve common payment issues, but they can effectively sell to customers without the need for human staff.
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However, Commercial chatbots are rudimentary compared to recent breakthroughs in modern natural language generation. An advanced AI chatbot even has one. Former Google Scientist It is believed to clear the mind. If you invest in and modify AI technology for your organization; You can personalize the entire customer journey and increase customer lifetime value.

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AI is not new to banking. It has been a part of industry and financial regulation for decades. However, It’s expanding at a rapid pace, toeing the line between existence and climax. If you want to stay ahead of the competition and better control privacy and fraud; If you want to save costs and get a better user experience; You must utilize advanced AI capabilities as soon as possible.

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Written by Rhett Power
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