Artificial intelligence in banks is already a reality that is not perceived in the magnitude it deserves. For this reason, in this article, an approach to the concept will be made, trying to make clear what it is and what its value is for the financial sector.
What Is Artificial Intelligence?
Artificial intelligence refers to a singularity represented by machines. That is the ability of devices or software to act on external elements. This technology will revolutionize all sectors because programs and machines no longer have predefined fixed functions. On the contrary, these technologies can modify their behavior and behavior to better respond to the requirements based on analyzing the needs of the environment or any other stimulus. In the financial sector, this technology is opening up never-before-explored paths.
How Does Artificial Intelligence Affect Banks?
In the financial sector, artificial intelligence fulfills four main functions:
- Understanding consumer needs
- Improving products and services
- Identifying and managing risk
- Preventing fraud
This way, each of these factors will be presented in more detail. Understanding consumer needs This is an advantage that more profit offers to bank entities. Taking advantage of intelligent software capable of analyzing customer data and offering them the most suitable products significantly enhances their contracting. For example, if a customer has a high cost of fuel and an entity provides a credit card, which allows him to deduct a percentage on refueling, he is much more likely to buy it. This is the case with many other services that customers sometimes do not know about but could greatly benefit them.
On the other hand, the collection and comparative analysis of data, carried out by intelligent programs, will make it possible to improve the type of products and services offered. If you have a savings fund and offer interested customers an interactive explanation where they have to go through several stages, you can see where customers lose interest. Finally, it should be noted that these data can help predict what the needs of Banking users will be, which allows for a much better adjustment to the evolution and creation of new services.
Currently, 15% of the bank’s risk control rests on analytical data. However, a paradigm shift is taking place, as a recent report by McKinsey & Company determined that by 2025 the previous percentage will increase to 40%. More banks increasingly adopt machine learning processes.
Identify The Fraud
Machine learning, one of the derivatives of banks’ artificial intelligence, can also be used to detect fraud. In this case, most banking entities use techniques to get to know the consumer. This is because unsupervised consumer analytics systems do an excellent job of identifying similar patterns or characteristics. However, they do not allow you to identify fraud the first time it is committed, something supervised analytics systems, or fuzzy neural networks do.
Chatbots In Customer Service
Another factor that should be highlighted is chatbots (a computer program that tries to simulate a human being in conversation with people) as a new and greatly expanded element to serve the customers of different entities.
But how can artificial intelligence help customer service? In creating chatbots, something like an iOS “Siri,” but for banking entities. Virtual customer support can help customers solve their problems and queries in real-time.
Consumer habits have changed because there is less and less time available. For this reason, going to a counter to solve problems that could be solved comfortably at home is becoming increasingly tedious and irritating. This was clear from the number of people who migrated to the first banks that offered online banking.
Virtual Customer Support, Also For Selling
Another feature of chatbots is the ability to sell products and services. The user who is grateful to the virtual customer support and who finds it valuable places a high level of trust in it so that when the customer recommends products and services, the customer most likely recognizes more excellent value.
On the other hand, these also make life a lot easier for all bank customers that incorporate them. This is very important for retaining customers and increasing profits in the medium and long term.