9/8/2020
Boom Of Artificial Intelligence In The Banking Sector (Part-1) | by venkat vajradhar | Sep, 2020 | Medium
Boom Of Arti cial Intelligence In The Banking Sector (Part-1) venkat vajradhar Sep 8 · 3 min read
From electronic trading platforms to medical diagnosis, robot control, entertainment, education, health, and commerce, Artificial Intelligence (AI) and digital disruption have touched every field in the 21st century. AI has made its presence felt in all walks of life due to its ability to help the user innovate. It has also enabled users to make faster and more informed decisions with an increased amount of efficiency. Of late, the banking sector is becoming an active adapter of artificial intelligence — exploring and implementing this technology in new ways. The penetration of artificial intelligence in the banking sector had been unnoticed and sluggish until the advent of the era of internet banking. One of the first steps was taken in 2015 by Ally Bank (USA) — introducing Ally Assist — a chatbot that could respond to voice and text, make payments on behalf of the https://medium.com/@pvvajradhar/boom-of-artificial-intelligence-in-the-banking-sector-part-1-9175a3510a9b
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9/8/2020
Boom Of Artificial Intelligence In The Banking Sector (Part-1) | by venkat vajradhar | Sep, 2020 | Medium
customer, give an account summary, monitor savings, spending patterns, and use natural language processing to understand and address customer queries. Banks all over the world followed up with their best versions of chatbots: Erica to iPAL, Eva and the most famous one — SBI’s SIA. According to Payjo (the start-up which developed SIA), SIA can handle up to ten thousand inquiries per second and is one of the world’s largest deployments of artificial intelligence in consumer-facing banking. In this era of technological revolution, the banking sector has also witnessed a paradigm shift in its approach from brick and mortar branches to digital banks. Banks are increasingly spending on artificial intelligence and ML in data analytics for personalized and faster customer experiences to garner the interests of the tech-savvy and the millennial class.
To Know About: Rise of AI-Powered Chatbots in the Banking Industry According to the FinTech Trends India Report by PwC in 2017, the global spending in artificial intelligence has touched $5.1 billion. The IHS Markit’s “Artificial intelligence in Banking” report claims that this cost has grown up to $41.1 billion in 2018, and is expected to reach $300 billion by 2030. This shows that artificial intelligence has reached a stage where it has become affordable and efficient enough for implementation in financial services. The challenge now is in exploring more ways where the powers of artificial intelligence can be harnessed to streamline internal banking processes and improve customer experiences. Front end operations of artificial intelligence are those that involve direct interaction with the clients. It includes applications and payment interfaces, digital wallets, chatbots, or interactive voice response systems. Back-end operations are more complicated as they involve the systematic processing of large chunks or terabytes of data to provide security to the system, analyze fraudulent transactions, and generate reports, improve compliance. We shall now discuss the future of artificial intelligence in each of these fields.
Enhanced Customer Experience The customer being the key driver of a service industry, customer service is at the forefront of any business. AI can be used to derive a better understanding of customers spending patterns, which will help banks customize products by adding personalized features. This supplements meaningful customer engagement, building strong relationships, and growth of business for the bank. https://medium.com/@pvvajradhar/boom-of-artificial-intelligence-in-the-banking-sector-part-1-9175a3510a9b
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9/8/2020
Boom Of Artificial Intelligence In The Banking Sector (Part-1) | by venkat vajradhar | Sep, 2020 | Medium
To Know about: Applications of artificial intelligence in banking For instance, SBI is working on a system ‘Automated Real-Time Customer Emotion Feedback’ (ARTCEF) using AI to study, in real-time, the facial expressions of customers. AI can also be used to offer personalized payment experience — like most suitable EMIs at checkout based on past payment patterns, offering multi-currency cards to customers who frequently travel abroad, etc. AI can also help in setting up biometric face recognition ATMs which function without the need of a card, using realtime camera images and at the same time detect and prevent frauds.
To be contd in part-2..
Arti cial Intelligence
Banking
Banking Technology
Finance
Machine Learning
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