How Artificial Intelligence is reshaping the Banking Industry

How Artificial Intelligence is reshaping the Banking Industry
December 16, 2022 | By Geniusto

The use of Artificial Intelligence (AI) within the banking industry is nothing new. Many major banks have harnessed the power of machine learning to assist with complex front and back office processes like fraud detection, risk management, and underwriting for several years now.

But one area that has seen noticeable recent growth is the use of Conversational AI. Thanks to the power of advanced AI chatbots, banks can boost their marketing, online sales, and support services at any hour of the day.

A 2020 Digital Banking Report found that 75 per cent of financial institutions were considering using Conversational AI to improve customer service. They were also looking to harness the power of AI to interpret data, drive analytics, and determine their next course of action. In short, what they want is technology that improves customer satisfaction, drives growth, and ultimately transforms the way they do business.

So how does Conversational AI help banks accomplish that? And what are the main benefits of using sophisticated chatbots capable of holding human-like conversations?

These are the five main areas we’re seeing Conversational AI make a real impact.

  1. Around-the-clock support.
  2. Better conversations with customers.
  3. Lower operating costs.
  4. Increased productivity and efficiency.
  5. Greater customer satisfaction.

While technology is improving rapidly, it’s already having a major impact on key services like customer support. By offering 24-hour customer service and online sales at any hour of the day, banks are meeting their customers where they are when they want to engage. This is generating greater overall customer satisfaction.

How does it work? They’re doing it by giving customers exactly what they want. We’ve moved from the world of traditional banking to one where flexibility and unlimited access reigns. Increasing the use of Conversational AI allows the banking industry to be flexible, adaptable, and meet these challenges head on.

Through the power of AI, banks can now provide a more personalised, real-time service that improves the customer experience. Better CX means better customer retention and increases conversion rates.

What else is AI improving?

While Conversational AI is now widely used within the banking world, it’s not the only kind of Artificial Intelligence in use. Many banks are also turning to Business Intelligence (BI) to analyse data for better decision-making.

Software that utilises machine learning to automatically read and analyse customer interactions such as chat transcripts and phone calls is having a powerful effect. It’s allowing banks to improve the speed and accuracy of their services, which also means reducing headcounts of customer service representatives needed to perform these previously manual tasks.

That’s not the only difference AI is making. It’s also playing an increasingly vital role in the fight against fraud. The speed and complexity offered by machine learning means AI can analyse vast volumes of data to identify suspicious patterns that might indicate fraud.

AI is helping banks comply with regulatory requirements by automatically flagging suspicious transactions. It deploys fraud-fighting algorithms. It’s another layer of protection in an industry where security is non-negotiable.

There is no doubt AI is here to stay. It’s making banking more efficient, more effective, and more flexible. And it’s doing this in ways that seemed unimaginable just a few years ago.

If you’re in the banking world and improving customer service is your mandate for 2023, let’s explore the possibilities. AI is transforming service, sales support, and marketing efforts at lightning speed. Conversational AI is an investment worth its weight in gold.

Keen to learn more? Simply drop us a line.