Pursuing The Future Of AI In Banking With i-exceed

Did you know that you can now perform banking transactions and open accounts while cracking jokes with AI robots and sharing live selfies for verification? These examples are not taken out of a sci-fi movie but are real-life instances of the future of AI in banking. In one instance, NatWest bank’s AI for biometric verification used selfies and device locations for KYC verification. In another, HSBC bank used “Pepper”, the humanoid robot, to greet and guide customers in their branches across the US. Several banks are quickly adapting to changing trends and advancements in the field of customer management, leaving behind their traditional methods. Today, the future of AI in banking is not merely limited to chatbots, virtual assistants, and other customer-directed actions. Moving beyond these, future of AI reasoning is equally utilized in the bank’s back office, ensuring safety in onboarding customers and preventing money laundering scenarios. The introduction of AI in banking has helped drop thousands of fraudulent account openings and unauthorized transactions at a time when almost 5% of the GDP went under money laundering. A traditional bank’s fraud detection system is normally set to detect anomalies from a certain amount of money and above. But with AI, every transaction conducted through the bank is under surveillance. Therefore, no fraudulent transaction, no matter how small they might be, will go undetected. While banking with Gen Z, the shortened attention span of the customer needs to be considered to create the bank’s perfect engagement platform. Therefore, a trip to the bank or a prolonged review process for account creation might appear as a red flag. Handing over the onboarding processes completely to AI can make the process more appealing to the bank’s future customers. This way, AI can report anomalies found among the thousands of transactions and verification processes to the manager and keep the workflow seamless. As an additional perk, the chances of false alarms and unnecessary blocking of checking accounts and credit/debit cards can be prevented. For example, the AI developed by Ayasdi to prevent money laundering in banking has been helping Scotiabank and Intesa Sanpaolo in dropping false alerts. Pursuing the future of AI in banking has, therefore, saved the banks millions of dollars required to investigate and monitor money laundering.

Transcending Ethnic Discriminations:

Have you heard that the award-winning Black Panther movie director, Ryan Coogler, was briefly arrested for withdrawing money from his own account at a prominent American bank? For any organization, the process of eradicating such segregation from the grassroots level is nothing less than a long-drawn task. But with the advent of AI, future cases of discrimination can be prevented by offering a more intimate and uniform attitude of the AI with every approaching customer. Nevertheless, eliminating bias is not the sole reason behind the future application of AI in the banking sector. Instead of treating customers like walking credit scores, AI-driven banking nurtures an approach of evaluating customers based on their previous financial behavior. They study the user’s pattern of spending and saving of their income and other investment practices to build a better and more promising customer base for the bank. Hence, the predicted rise of AI investments in the banking sector, by 16 times by 2030, does not come as a shock. With reduced operating costs and risks, better customer experience, and stronger detection of fraudulent activities, AI comes with its own minor drawbacks. The task of understanding and explaining the working of an AI and how they come to certain decisions is an almost impossible task for a regular banking employee. Instances such as explaining the motive behind AI automatically denying loans to a long-term client is a task no layman would like to take up. Another major challenge faced by banks is their technical incapability to be compatible to transform themselves using AI. With challenger banks now competing with technological companies, traditional banks are still struggling to let go of their ways and fully embrace the technical possibilities. Even with these flaws, in the coming years winning the market competition will be possible only when armed with AI innovation. The banking sector is no exception to this open secret. Therefore, banks preparing for this competition have a better chance of winning with AI on their side to automate tasks and prevent fraudulent activities. Want to perfect your customer experience and secure your bank from fraudulent attacks? Learn more about how our Appzillon Artificial Intelligence (AI) Banking Platform can help your banks.