Artificial intelligence has made huge leaps in the last 10 years. What was once thought of as a thing of in sci-fi movies has now become a reality. In fact, its presence is ubiquitous although we may not always know it’s there.
Take Google for example. Every time you do a search on the Google search bar and click on the link results, it takes that data, analyzes it, allowing it to provide better search results to users in the future. Or Siri –every time you ask Siri for something, it is learning your behavior so it’s able to provide more accurate answers over time.
Simply put, AI constantly acquires knowledge, analyzes it without human intervention, and learns from its past decisions to improve its future performance. As time goes by, AI only becomes smarter.
Today, we are seeing a growth of AI use in the financial industry. Banks are among one of the first adopters of AI technology but with digital devices becoming eminent, it’s expected that this technology will be used with online banking as well.
Maintaining tight security in financial institutions costs a lot of money, and smart investors are seeing the huge money-saving potential that AI can give. For one, it increases work productivity. What takes one employee hours to do, can only take a few seconds with AI. It has the ability to process millions of transactions in minutes. The resources saved for doing tedious processes efficiently will allow banks to become more profitable and competitive.
Banking institutions hold a lot of valuable data. Data, which, if compromised, could cost the institution millions of dollars and a broken reputation. With AI, banks can reduce payment frauds made online.
For example, if a bank uses biometrics verifying identity, with the help of AI, customers’ accounts can become more secure as it looks into the customer’s past behavior such as transaction patterns, frequency –even down to the regular time which the customer uses the service.
Furthermore, banks are now beginning to incorporate more biometric markers such as facial structure, voice print, heartbeat rhythm, keystrokes, and more. So you don’t necessarily have to get those pesky notifications warning you of every transaction you make. You become part of a secure system simply by inputting your unique biometric data.
Banks have a huge advantage in adopting AI in their online transactions. Aside from having the ability to secure huge amounts of data, AI can also create a more personalized service. It can identify common roadblocks customers face when doing transactions, giving humans insight into how they can their products and services. As a result, the customer experience gets more streamlined across all devices and services.
We’ve come a long way from the banking transactions of previous decades. No longer do we need to make an appointment at the branch to make a simple deposit or withdrawal. We can do most financial transactions today with just a few clicks on our mobile phone. Heck, with AI, we can maybe even do it with just a touch of our thumb. That’s how convenient it’s become.
This is good news for people who are always on the go. Even more so, it’s even better for elderly consumers who may not be as well-versed in online banking. By providing only their basic biometric data, they can also perform transactions online without the hassle of visiting the branch.
People like convenience and security with their banking. As the years pass, we can expect AI to become more integrated with online banking. By then, it may already have the ability to visualize legal documents and reports as well as provide financial advice to consumers. This just all means an overall better banking experience.
What are your thoughts on artificial intelligence being used in banking? Share your thoughts in the comments below.