Artificial Intelligence in Banking
Can you name the recent trendy word in scientific circles and the business sector? You can come with so many according to your interest. For example, machine learning, artificial intelligence, Internet of Things and many more. The trendy word, you name, will be based on your individual interests. But yes, one new technology is making noise everywhere. It is called as Artificial Intelligence. In this article, we will deal with the challenges of AI in the banking sector.
But what is Artificial Intelligence?
Artificial Intelligence is not a new technology. It was found way back in the 1950s. Back then, every computer had to pass the Turing Test for its general capabilities. Let us figure what AI means in recent times. It is a new technology where software programme is written to respond as humans do. In general words, AI is a system that can perform tasks that needs human intelligence. For example, speech recognition, decision making, visual perception and even language translation.
So, what are the benefits of Artificial Intelligence in Banking?
Just imagine the opportunities. It can take off manual jobs and make the bank executives and managers concentrate on worthy tasks such as addition of more customers. The software programmers can also work on other software which can give multiple benefits to the general public. And what are the manual jobs that can be taken off? Shall we take a simple look?
There are some among the general public which do not use ATMs and transfer of money via the digital mode. So, they opt for only cheque withdrawal. And the bank executives, they have to check the signature and then give the money. This is a manual job. In the future, an AI system can come which can check the signature and give the perfect sum of money to the account holder.
What is the future of Artificial Intelligence in Banking in India?
As per the bank employees, they believe that AI can bring many changes in the transaction and digital payment sector. A human can commit mistakes. But a AI toll can give precise and accurate information in terms of decision making. An AI tool can also cause disturbances in the entire banking mechanism if a simple algorithm goes wrong.
Thank the Supreme Power, AI has been accepted in many sectors. It was in the health care and digital marketing field that AI faced a lull in operations, but now these sectors have also jumped into the bandwagon. They are also doing research to introduce AI in their own sectors.
There are some people who believe that AI is expensive technology. It is, no doubt, at the present moment. Imagine the time, when mobiles got introduced in the market. They were expensive. Only the rich and elite had access. Now, in 2018, even a layman has a android phone. In other words, the prices have come down. Similarly, the AI technology will also become inexpensive with the passage of time. This industry will be worth a trillion dollar in 2035. In 2018, the initial stage has happened. But to achieve its potential, research has to happen.
When AI and Machine learning are combined together, the customers in banks can get personalized service.
Government and private banks are trying new options to integrate new technologies such as AI and machine learning. And they are also seeking public assistance. The State Bank of India, had conducted a event called as ‘Code for Bank’ hackathon. The main purpose of the competition is encouraging programmers to design new software programs for integrating Block chain technology and Artificial Intelligence in the banking sector. Some private banks in India have already introduced chat bots for giving apt response to customers. Do you want details? Kindly check on Mitra robots and Candy robots.
In the next paragraphs,let us look into some of the AI implementation in the banking sector?
1. Fraud Detection
Every Indian, even a villager has a card. Debit or Credit. Suppose if it gets stolen, and a hacker buys money via your online account, an AI can identify and notify you and the bank. In normal situations, a bank executive will have too much of workload to pay heed to these uncanny spending patterns.
2. Risk Management
Let us imagine a situation. You work in a bank and the auditors have come. The spending and deposition of a individual account holder comes with different figures. Now, if you are doing manual work, the work is to check all accounts. But if AI implementation has already happened, then the mistakes will not happen.
3. Automation in Transactions
A customer who holds a account in a bank may put a signature in the check, that is slightly different from the original. A bank executive will also for permission from the seniors to pass the cheque. An AI will ask for face recognition, check permutation, combination and then pass the cheques.
4. Wealth Management
You will need a counselor or executive to get a loan. But an AI after taking in consideration your income and other factors will select the best loan for you.
Will ATMs remain in the future? They may. But instead of debit cards/credit cards, they may rely on face recognition.
6. Customer Care
Voice Recording has already become a part of customer response. Now you have the chat bots which can give proper words in a conversation with customer in the chat box. There are also special chat bots that can send a personalized message as per the requirements of the customer. If the case is complicated, then a human customer care executive can step in and rectify the situation.
The biggest threat to online transactions and payment comes through identity theft or phishing. When AI is introduced for the system of online payment and transactions, the risks get reduced. How? Let us imagine a situation. You work as a accounts manager in a company which provides home services in Hyderabad Your company offers doorstep services for laptop repair in Hyderabad.Now, you have a general tendency to do purchases in the middle of the month. And one day your credit card gets stolen. The thief cracks your password and makes purchases online. Now, if there is a normal system, you will get an alert in your mobile for the purchases. But if there is an AI, it can not only send alerts to you, but also block other transactions successfully.
How? Because the AI has noticed a difference in transactions. It has taken into account, your spending history. Noticed the difference and then gave an alert.
In 2017, research firms spent 4 billion trying to innovate new type of software for the benefit of public by using AI. And in the year 2018, the amount is speculated to reach nearly 8 billion.
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