Gone are the days when you had to stand in a bank queue for hours to get a loan or make transactions.
Typically most of the banking services were provided physically. But with online banking coming into the picture, our lives have become much easier. Banking in India has been remarkably quick to integrate AI into its functions. From one-tap UPI payments to generating online statements and m-Passbooks to getting loans in seconds, AI has made it all easy-peasy.
AI can enhance efficiency, facilitate business growth, drive innovation, handle risk and regulatory requirements, and positively impact customer satisfaction.
The future of AI in finance and banking is inevitable! Here are some of the most important changes brought by Artificial Intelligence (AI).
AI plays a vital role in detecting and preventing fraudulent activities. Machine learning can analyse patterns in real-time data to identify potentially fraudulent transactions. By monitoring account activities, AI can raise alerts when suspicious behaviour is detected, helping banks to take immediate action and minimize losses.
AI assists banks in assessing creditworthiness and evaluating risks associated with lending and investment decisions. By analysing data, including financial information, transaction history etc., AI algorithms can provide more accurate risk assessments.
Additionally, AI can automate compliance processes by monitoring and analysing vast amounts of data to ensure adherence to regulatory requirements, such as Anti-Money Laundering and KYC regulations.
AI can automate routine and repetitive tasks, freeing up human resources to focus on more complex and value-added activities. Document processing, data entry, customer onboarding, and other manual processes can be automated using AI technologies. This results in increased operational efficiency, reduced errors, and faster turnaround times for various banking operations.
AI enables banks to deliver hyper-personalised experiences by leveraging customer data, transaction history, and external data sources. This allows banks to offer customised product recommendations, personalised offers, and tailored financial solutions to individual customers.
AI enables banks to provide personalised and proactive customer experiences. Through the analysis of vast amounts of customer data, AI algorithms can understand individual preferences, behaviours, and needs.
Chatbots and virtual assistants powered by natural language processing can engage in conversations with customers, answer queries, provide product recommendations, and offer round-the-clock support, contributing to a seamless and efficient customer experience.
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The future of AI in banking holds great potential for transformative changes. AI may revolutionise the industry by offering personalised customer experiences, efficient fraud detection, and improved risk assessment and compliance. Automation will streamline operations, allowing for faster and more accurate processing of tasks.
Benefits like increasing security through fraud detection, better risk assessment, fully automating lengthy and mundane tasks, using customer data to provide personalised products and services, and finally, better customer service using tools like chatbots will be most vital.
Chatbots and virtual assistants which use natural language processing can have conversations with customers, answer their queries, provide product recommendations, and, most importantly, offer round-the-clock support, contributing to a seamless and efficient customer experience. This also helps reduce costs for optimal utilisation of resources.