There was a time when people were skeptical even about mobile banking due to security concerns. But now, we find many banking applications rely on AI solutions for banking automation and a more personalized banking experience for every customer. From back office applications to customer touch points, the extent to which AI has penetrated into the banking industry is quite huge.
The many Benefits of using AI Solutions in Banking
- Chatbots for quicker response times
Some simple queries from customers like queries about card transaction details or even blocking and unblocking a card can all be taken care of by a virtual banking assistant. Chatbots fine-tuned to perform this will significantly enhance the experience for customers. This also helps in strengthening the brand image of the bank so that it can create a strong and loyal customer base.
- Voice commands and more
Machine learning algorithms built into banking apps take care of voice to text conversions. This helps customers to use voice commands to quickly search features or even carry out specific transactions. Sometimes this also means voice assistant support so that customers can quickly transfer funds, check the statement or make other banking transactions using their mobile smartphone assistant.
- Back office risk assessment benefits
For banks to analyze their customers’ financial performance or even to understand a customer’s credit performance to make loan decisions, AI solutions are very useful. Some banks have an extensive enterprise AI platform focusing on risk assessment based on available data as well as real time data collected from customers. This involves details like regulatory compliance, calculation of credit score prediction about customer’s ability to repay the loans and more.
- Personalized sales funnel
Banks can also work on strategies to improve their conversion rates with the help of a suitable AI platform to gather and analyze customer data. This includes recommending relevant services to customers. Customers would be happy to know about services that will simplify their banking and products that will take their financial portfolio management to the next level. From investment advice to support in choosing the right type of debit card, savings/current accounts banks can offer a host of personalized services to every single customer.
- Shorter timelines
One of the main reasons why customers use mobile banking and online banking services is because they are convenient and they save a lot of time. AI solutions for banking further reduce the time taken in several ways. Customers can set an automation for recurring payments. For the banks, on the other hand, AI provides a more practical way of data collection and structuring. With relevant data available readily, marketing strategies, customer transactions, and several other tasks can be performed within a shorter timeline. Customers get real-time updates about transaction details, insights about their spending pattern and also valuable data for budgeting, all provided instantly.
Banks are estimated to save a whopping $447 billion by the year 2023. Higher cost savings for the banks would enable banks to lower the rates of services and thus improve customer satisfaction.
