Global spending on artificial intelligence is expected to rise dramatically by 2024. Leaders in every industry, including banking and financial services, are quickly discovering the incredible value of AI. By leveraging this technology, financial institutions can better manage privacy and fraud, increase cost savings, and improve the overall customer experience.
According to research from the Organization for Economic Cooperation and Development, global spending on artificial intelligence will rise from $50 billion in 2020 to $110 billion by 2024. It’s not hard to see why – consider how useful customer service bots are, or how optimizations can reduce operational expenses. Financial institutions have taken notice and are adopting AI at a rapid pace.
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. Narrowly 60% of the main financial institutions have at least one built-in AI capability, reports McKinsey & Company. But how exactly can you benefit from this evolving technology? Here are three ways you can use AI to boost your business:
- Better manage privacy and fraud.
A recent study found that a significant number of Pandemic-Era Paycheck Protection Program Loans They were potentially fraudulent. And when regulators like the Bank of England drown in 65 billion pieces of data each year, it is difficult to address the problem. Fortunately, recent advances in AI help you filter data, find patterns, and detect fraud in real time.
“When you’re a CFO, you protect your company and its customers from fraud and privacy breaches while complying with ever-changing regulations. can be a full time jobsays Beverley McCarthy, Strategic Insights Program Manager at MindBridge, the world’s first and only AI-powered audit solution that protects others by meeting the human need to understand business-critical data. “AI can help shoulder that burden by using advanced pattern recognition to identify any anomalies in a data set, making AI tools much better at detecting fraud and mitigating potential risk.” Don’t overload your team members with too much data. By leveraging AI, you can better control privacy and fraud.
- Increase your cost savings.
It is estimated that AI will save the banking industry $447 billion by 2023. How? Robotic process automation software, optical character recognition, and other artificial intelligence technologies are lightening the loads on human workers, allowing you to do more with less. With AI, Accenture estimates that you can process two to five times the volume of interactions or transactions with the same number of team members.
“The banking industry is largely digital in operation, but it is still plagued with human-based processes that sometimes require a lot of paperwork,” says Ronald Schmelzer of Cognilytica. “In these processes, banks face significant operating costs and risk issues due to the potential for human error.”
By investing in AI, you can help your staff be more productive without sacrificing quality. In fact, the quality of your institution’s work could improve due to fewer manual errors.
- Improve your customer experience.
According to McKinsey & Company, “Banks that leverage AI and analytics to deliver intelligent service and superior experiences can increase customer satisfaction and loyalty. Research shows that the stronger the experience and the more satisfied the customer, the more likely the bank is to generate more revenue.”
Traditional banking experiences are simply not enough to satisfy today’s customers. For example, long customer service wait times and limited hours may prompt people to consider competitors. Fortunately, AI alleviates these problems. Chatbots are always available and are becoming more sophisticated every day. Not only are they capable of accessing accounts and solving common payment problems, but they can also upsell customers effectively without involving human staff.
However, business chatbots are rudimentary compared to recent advances in modern natural language generation. An advanced AI chatbot even has a former Google scientist believing that it is sensitive. By investing in and refining AI technology for your institution, you can personalize the entire customer journey and increase customer lifetime value.
AI is not new to banking; it has been a part of both industry and financial regulations for decades. However, it is beginning to expand at a rapid pace, drawing a line between the haves and the have-nots. If you want to stay ahead of the competition and reap the benefits of improved control over privacy and fraud, greater cost savings, and a better customer experience, you need to take advantage of modern AI capabilities as soon as possible.
Written by Rhett Power.
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