Artificial Intelligence in Banking Sector

Rajesh Melam

The Digital Revolution refers to the advancement of technology from analog electronic and mechanical devices to the digital technology available today. The era started to during the 1980s and is ongoing. The Digital Revolution also marks the beginning of the Information Era. The revolution was the ability to easily move the digital information between media, and to access or distribute it remotely.

The digital revolution is without a doubt the most significant event in information dissemination since Gutenberg’s printing press and arguably marks a much bigger shift in human communication. This chapter discusses the impact of the digital revolution on scholarly publishing and professional communication thus far and describes the key trends and technologies shaping the future of the industry. These include evolving online publishing platforms, Web 2.0 technologies that use audience participation and network intelligence, mobile technologies that enable information professionals to access information anywhere, semantic technologies that transform how we discover information, and workflow integrations that channel the right information to the right individual at the right time.

Digitization is generally seen as a positive force. The governments of countries such as Estonia, for instance, are embracing digital technology to become more efficient and transparent to their citizens.

However, emerging technologies such as artificial intelligence (AI) are sometimes greeted with fear. For example, as self-driving cars near fruition, the public’s willingness to ride in them is declining. And concern over the impact of AI on people’s jobs is growing, even though economists say that occupations are likely to adapt to technological change, rather than be lost altogether.

Digital transitions have impacted the banking sector. It has changed the way banks offer services, the way they manage customers as well as investments and productivity. Digitization has helped banks increase customer base by providing banking services online and through smartphone apps

Artificial Intelligence is the future of banking as it brings the power of advanced data analytics to combat fraudulent transactions and improve compliance. AI algorithm accomplishes anti-money laundering activities in few seconds, which otherwise take hours and days.

Artificial Intelligence in Banking Sector

The main aim of having Artificial Intelligence in the banking industry is to get insight into the customers preferences, to ensure that the customers are happy with the services provided by the banks and help the customers understand their expectations from the banks

Artificial Intelligence – A Boon To The Banking Industry

In the world of technology, Artificial intelligence or as the hot new buzzword calls it, AI is the rising star. Artificial intelligence is the go-to technology for almost all the companies around the world. Now, if artificial intelligence is the hot subject on media and people around the world are talking about it, then there must be something about it that we need to know and understand. In this article we will discuss about Artificial intelligence and banking, how it is especially used in the banking sector, the application and the scope of artificial intelligence in banking. To begin with, let us understand the meaning of artificial intelligence.

The Role of Banking Industry

Banks play a very important role in the development of financial life of modern society. It is considered as the life blood of today’s world economy because it handles cash, credits and other financial transactions. Banks help customers to track their expenditures over savings and motivates them to save money and earn interest for a safe future. This encouragement in turn helps the banks to provide financial assistance to the growth of big industries. Since, the banking industry plays such a major role in the development of world’s economy it is very important that each and every financial transaction done through the banks must be properly documented. To do this, the banks primarily use computers, where they have a detailed record in their databases. Some of the various channels that banks use for their operations are through ATM’s, mails, telephone banking, online banking and mobile banking. It is mind boggling to know that the entire banking system is so well connected that each and every transaction can be tracked and any exchange of information can be done from any part of the world just by connecting to these networks. This smooth operation of the banking world that is done through computers and networks is possible only because banks use Artificial intelligence.

Artificial Intelligence in Banking Sector

The most essential part of this industry is Artificial Intelligence in banking. It has a profound impact when the machine learning in banking industry can interact with humans by making decisions and in a convincing way encourage customers. The main aim of having Artificial Intelligence in the banking industry is to get insight into the customers preferences, to ensure that the customers are happy with the services provided by the banks and help the customers understand their expectations from the banks.

Benefits of Artificial Intelligence in Banking

Today the banking industry uses Artificial Intelligence in many ways to shape the world of banking life.

  • Customer Satisfaction
  • Chatbots
  • Detecting Fraud
  • Digitization

Digitization is using the support of technology to transform data into a digital format. There are many advantages of using digitization in the banking industry.

  • Helps in enhancing customer experience
  • Helps in saving time both for the customer as well as for the bank
  • Helps in reducing human error
  • Helps in building a strong and loyal customers
  • Helps in the movement of large cash inflow and outflow
  • Helps in dealing with cashless transactions from any place and at any time