Most of the companies have been witnessing the technology revolution with the advent of Artificial Intelligence (AI). The technology is being used across all industries to address a wide range of challenges by making smart and simple interactions with machines and systems. AI can bring unique value to a business and its customers by allowing computers to learn, adapt and improve the functionality processes at lower costs.
It would be certainly beneficial for financial institutions also to adopt AI in their workflows to create innovative products and services and also to transform customer experiences. Here are the few benefits which will give better insights about the accomplishments of AI in the retail banking industry.
Anomaly fraud detection
Most of the retail banking companies are dealing with fraudulent transactions. Anomaly fraud detection applications for the banking industry can prevent fraudulent transactions by installing its software in the existing fraud management system. Later the software will be trained in real time on a stream of labeled data from transactions or loan applications.
When any banking transaction such as credit or withdrawal deviates from the standard data patterns, then the software can detect it as fake through machine learning algorithms and will notify the banking authorities. It's incredibly essential for banking organizations to consider the application of AI in fraud detection.
As AI technology improves consistently, automated credit scoring becomes more widespread in banking which may create changing requirements of their staff. For example, if any banking institution adopted a credit scoring application which could automatically analyze customers credit score once they submit a loan application the result will be the workload reduction.
Recent advancements in AI created exceptional customer service in retail banks through the deployment of chatbots in mobile banking apps. With this service, customers can find assistance easily by navigating through the app with less friction. As this chatbots run on Natural Language Processing (NLP), they can respond to the customer queries in the required language.