What is artificial intelligence?
Artificial Intelligence (AI) is a technology that simulates human thinking and learning for machines
Artificial Intelligence (AI) is a technology that simulates human thinking and learning for machines
Artificial intelligence (AI) is a technology that simulates human thinking and learning processes for machines, especially computer systems. These processes include learning (gathering information and rules for using information), reasoning (using rules to reach approximate or definitive conclusions), and self-correcting. Special AI applications include expert systems, speech recognition, and computer vision (facial recognition, objects, or writing).
Automated service through robotization (RPA)
One of the prominent applications of artificial intelligence in banking is through robotic automation. Every year, banks have to spend 10 to 15% of their spending to maintain IT operating costs and improve security services. However, AI has provided banks with the opportunity to mitigate these costs through automated services.
Applying AI in the bank reduces operating costs Artificial intelligence in banks reduces operating costs
Robotic automation (RPA), for example, is the automated process of robotic software that enhances productivity and automates desk jobs by simulating computer operations by office workers. The RPA will remember the execution rules known as the sequence of operations script. The next time RPA will do this work based on the existing script has been created.
An Accergy report notes that RPA can help reduce costs by up to 80%. What’s more, incorporating RPA into your AI strategy improves your processes by enhancing agility, performance, and productivity. For example, RPA’s seamless integration with your infrastructure makes it easier to process credit card orders faster with accuracy and transfer data from a web format to your mainframe. This enhancement can reduce task time by 90%, which can lead to a better customer experience.
Enhanced customer experience through Chatbots
Chatbots is the application of artificial intelligence not only in banking but also in many other areas of interest. Because keeping up with the needs of the customer service in the bank has long been a problem for many banks. Company employees only work for the specified time to handle problems encountered by customers. So not being able to get an immediate response when needed can limit the customer experience.
Chabots help increase customer experience Chabots help increase customer experience
However, chatbots provide a solution to solve customer service problems. Thanks to this AI-powered automation, retail banking customers can get answers to questions instantly and help make sound financial decisions.
For example, Bank of America Erica’s chatbot digital assistant helps a bank client to make better financial decisions by giving financial advice based on a customer’s banking habits using intelligence. artificial intelligence and predictive analysis. The bot can suggest what a customer can save to achieve a specific financial goal, such as saving $ 100 on credit card payments. The bot also provides recommendations using predictive analytics to determine the spending and saving habits of bank consumers. Bank customers can also use the bot via text message or mobile apps to ask questions and receive financial advice.
While chatbots are useful for enhancing customer experience, they can also be used in banking for emotional awareness so they can use sensitive preferred responses that are sensitive to customer needs while Emotional consideration is acknowledged before responding. This helps customers receive a more personalized experience. It is important to note that the chatbot has an accuracy rate of only 85%; Therefore, it is important to consider specific scenarios and predict questions and answers for better accuracy rates and an improved customer experience.
Improved user interface with advanced machine learning
Simple navigation for online banking and mobile banking apps is an important strategy for banks to follow as it enhances the customer experience. AI helps provide simplified user interfaces that banking customers can navigate easily. Customers will be able to access the pages they need quickly. Responsive design and UI design tactics adapt to the device the customer is using at the time for easy navigation. For example, advanced machine learning can be used to simplify the document upload and loan application process by accurately reviewing information from documents that customers upload from their mobile devices. with built-in camera.
Transforming the role of the workforce in the banking industry
It’s hard to see through how the application of artificial intelligence in banking has made such a dramatic change without discussing its impact on the role of bankers. The adverse effects of integrating AI into modern society have focused on how it can automate jobs, with many predictions, including automating 47% of US jobs by 2025, 850,000 jobs in the UK by 2030 and nearly half of all jobs globally by 2055. It is being moved into the banking industry with the introduction of chatbots and assisted auto tellers that can help process loans or open accounts and answer questions faster and cheaper than multipliers. tablets. Furthermore, AI is expected to replace 30% of jobs in the banking sector within 5 years and 10 years.
Employees in the banking industry have better promotion opportunities Personnel in the banking industry have better opportunities for promotion
However, AI also provides an opportunity for role transformation in banking. A McKinsey report notes the potential for automating roles and tasks that require knowledge and creativity (e.g. management, planning, people development and decision making) is low. than the ability to automate jobs that require data processing and collection, such as financial data verification. That means an area of opportunity lies in preparing your bank tellers and other employees with higher potential jobs to be automated for knowledge-based roles. This can be done through training, mentoring, leadership opportunities and internal opportunities.
What to prepare for the rapid growth of AI?
The rapid development of AI, especially the application of artificial technology in banking, will certainly have a significant impact. From RPA to chatbot, AI will change the way customers interact and how banks will conduct business. Investing in AI will be crucial to differentiating your banking business