The banking sector has experienced a significant change due to digitisation. It has made it possible for people to have round-the-clock access and manage large amounts of cash. It has also helped to reduce costs.
Moreover, it has enabled the banking industry to reduce its direct impact on the environment. Banks can save energy by conducting some of their operations remotely. In addition, they can reduce the use of paper and vehicles. These technologies have also allowed them to improve customer satisfaction and increase their brand loyalty.
From chatbots that assist with customer service to AI-enabled anti-fraud and anti-money laundering solutions, artificial intelligence is being used in banking for a variety of reasons. It converts manual workflows to cost-efficient automatic robotic operations that offer reliability with minimal chance of error.
For example, neobanks use data to tailor credit offers for each individual customer. They can also use machine learning to predict when a customer is likely to overspend or run into debt.
With consumers using a myriad of online resources to communicate with companies, research products, purchase items, and perform banking tasks, the financial sector has amassed a huge stockpile of data. This wealth of information allows banks to keep track of customer transactions, monitor trends, and predict behaviors, resulting in improved overall performance.
This data can also be used to streamline operations by reducing costs, improving service, and enhancing security. Specifically, it can be used to automate processes and eliminate manual tasks that can easily be performed by a machine, freeing up staff to focus on more customer-facing activities.