Artificial intelligence caters to banks and customer needs

March 24, 2022 | 4 minute read
Prashant Bansal
Digital Banking Consultant, Oracle Financial Services
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Banking customers do not think, speak, text, or communicate as financial institutions do. They seek personalization, empathy, and a deeper understanding of their financial and life circumstances. Artificial intelligence has the ability to read customers’ moods and aggregate data to predict further intention and needs, which opens up the opportunity for banks to bring more meaningful conversations and engagements with customers.   Supporting strained customer relationships when customers connect with a  service representative, they want accurate answers without spending too much time over the phone or email. However, the waiting time to reach a customer service rep has tremendously increased during these digitalized times. Human agents cannot scale up with the ever-increasing demand to resolve customers’ queries. More often than not, agents feel burned out as they do not have enough tools at their disposal for delivering faster response time.

 

With conversational artificial intelligence (AI) and the use of machine learning (ML) and natural language processing (NLP) to create a better customer experience. With the right set of programs and rules written, AI/ML tools can do much more than chatting and providing basic information to customers. For example, you could also update your contact and residential address, check your credit card balance, activate your card, etc.

 

AI tools can be fraud analysts too

Did you know that AI tools can act as fraud catalysts too? For instance, after buying a soccer match ticket, your bank’s AI tool will send you a notification for confirmation of payment. Afterward, only with your authorization through a single click will the payment go through.

 

Having said this, it’s a cultural shift for banks, and they need to be ready and prepared for this transition. Executive staff must be trained to access AI tools and understand the data generated after inputting required filter values.

 

Banks today want to meet their customers where they are and want to understand their needs in a short period of time. Moreover, they want to develop a customized product of customers’ choices and needs. If not for AI and chatbots, banks will take much longer to achieve these as they require a lot of manual intervention, thinking, approvals and processes.

 

Digital banking products with chatbots

Integrating chatbots with digital banking services meet customers’ needs. With chatbots in place, customers will always have an assistant to answer their questions in real-time as they browse through their online banking application. So whether you’re facing trouble with making a payment or choosing the right goal for buying your dream car, your assistant is just a click away with your digital banking application complements that feature and caters to all your needs.

 

Self-service applications have proven to be more reliable and likeable by users. Users want to have the answers when they need them, not when customer service centers are operational. Additionally, the increased adoption of digitization in banking, use of AI-enabled chatbots, the collaboration between banks, and government funding are driving the market growth of digital banking products with AI-enabled features.

 

Most financial services companies say they’ve implemented AI technology in business domains like risk management (56%) and revenue generation through new products and processes (52%), per the Cambridge Centre for Alternative Finance and the World Economic Forum.

 

Most banks (80%) are highly aware of the potential benefits presented by AI and machine learning, per an OpenText survey of financial services professionals. Moreover, many banks are planning to deploy solutions enabled by AI: 75% of respondents at banks with over $100 billion in assets mentioned that they’re currently implementing AI strategies as per a UBS Evidence Lab report seen by Business Insider Intelligence.

 

AI can also help financial institutions lower operating costs, ensuring time-effective and stringent business processes without much human intervention. For example, banks can use AI for originating loan or credit card applications while assessing customers’ credit and risk scores. In this way, customers can get to know their application status immediately without having to wait in the bank branch for their applications to be processed. This will enable banks to open accounts faster and deliver a greater customer experience.

 

AI and ML for fraud detection

As cyberattacks get more sophisticated, cybersecurity becomes vital in identifying and resolving those attacks in no time. AI can help with the problems that people are unable to solve manually. While statistically, 95% of security issues and data breaches happen due to human errors. 

 

The number of cyberattacks grows from year to year. AI in finance allows Identifying unusual customer behavior and suspicious money movements. Oracle Products helps financial institutions with:

 

  • To detect new fraud schemes and entry points, gain a centralized view of suspicious events across all products and channels. 
  • Obtain an integrated view of all fraud activity with an advanced Alert and Event Correlation engine to uncover hidden relationships and trends.
  • Identify fraud events and avert losses with real-time monitoring and interdiction.

 

For more information on Oracle Banking Solutions, please visit us, or message us for a chat.

 

Prashant Bansal

Digital Banking Consultant, Oracle Financial Services


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