Artificial Intelligence (AI) also shapes our relationship with banks

AI’s ability to process large amounts of data, detect fraud and perform advanced analytics has led to its adoption in a variety of fields, making it no exception in the financial industry. When used accurately and proactively by banks, it is an invaluable resource for improving people’s lives.

T

he financial sector is an excellent field of action for Artificial Intelligence. At times through direct intervention and at other times in a more subtle or even imperceptible way, AI can be applied to all the different aspects of bank management procedures (onboarding, account transactions, cash life cycle at ATMs, documentation handled at the teller window, interactions with the different customer service channels, etc.) to shape customer and employee relationships with banks. 

Data analysis and customization: improving customer onboarding and services

One of AI’s greatest benefits is the ability to perform risk analysis and assess the likelihood that certain events will happen. This has enabled financial firms to make better informed and more accurate decisions about what investments to pursue and how to manage their portfolios. Thanks to machine learning, AI is perfected to define trends, analyze spending patterns and better advise clients.  In this way, they offer personalized recommendations and savings strategies that are adjusted to everyone’s needs. For example, AI can detect when a customer is having trouble managing their income and can design solutions tailored to their personal circumstances. Hyper-personalization not only helps companies retain existing customers, but also attracts new customers looking for specific financial solutions. 

Fraud Detection 

One of the most crucial use cases of Artificial Intelligence in this context is fraud detection. Machine learning algorithms and predictive analytics are used to detect habits and irregularities in financial transactions, which is very useful in identifying and preventing crimes in real time. This application protects both institutions and users as well as ensuring compliance with AML (anti-money laundering) protocols.   

Artificial intelligence also assesses the creditworthiness of customers and predicts their ability to pay, helping banks and fintechs to reduce the risk of non-payment and improve their profitability. For example, through different communication channels such as digital banking apps or SMS, automated notifications can be sent to alert customers of transactions that are about to take place, such as the collection of a bill or car insurance. AI plays a huge role in identity verification processes. If a person lives in one city and card activity is recorded in another, it is possible to use mobile phone geolocation systems to check where they are situated, report the transaction and request approval or disapproval. This prevents crimes such as identity theft. 

Identity verification and customer services 

In almost any service that operates digitally, we can already find assistants in the form of live dialog boxes that resolve our doubts instantly. These are the so-called chatbots: another of the interesting applications of AI, especially useful in the banking and fintech space. These artificial intelligence systems allow users to interact with their bank more efficiently and conveniently, as they can resolve queries and perform transactions in real time without having to wait to speak to a live agent. Chatbots can also provide personalized and relevant information about financial products and services, as well as offer recommendations based on user data. By automating customer service activities that used to require infrastructure and human resources, they help reduce costs. 

High value tasks: security and compliance 

AI reduces the time and resources needed to perform repetitive tasks, as it can process large amounts of data and perform complex analysis in a matter of seconds, resulting in more efficient decision making. On a day to day employee basis, it helps identify and address compliance issues within the frameworks and policies set by the bank or the fintech. 

By allowing bank employees to focus on higher-value and more complex tasks, artificial intelligence gives them the opportunity to develop more advanced skills and knowledge in areas such as risk management or cybersecurity. This not only improves the quality of work performed, but also helps retain talent in the long term. By improving job satisfaction, AI helps optimize productivity and performance. 

Building trust and saving costs 

Maintaining competitiveness, interacting in a more human way and, of course, saving costs, are fundamental objectives of the commitment to Artificial Intelligence. All aspects of AI are reflected in budgets: from the evaluation of risk profiles to the early detection of fraud or paper savings in offices. Although it shouldn’t be the only goal, focusing economic resources on areas of greater value such as customer products and services will have an impact on the brand image and will create trust in the institution. 

The adoption of Artificial Intelligence in the financial industry has proven to be of great value in improving all processes involved in banking management. As in other sectors, the experiences it provides paint a picture of a future in which digital progress modifies the realities of the physical world.