Banking in the AI world

Organisations can take advantage of the technology to address key competitive challenges Organisations can take advantage of the technology to address key competitive challenges

In a world where the use of advanced technology is becoming increasingly pervasive across a variety of industries, financial sectors show one of the greatest signs of interest and adoption, even among the heavy banking incumbents. Artificial intelligence (AI) represents one of the best opportunity for financial services organisations to take advantage of the growing avalanche of data they own, allowing to address many of their key competitive challenges and growth agendas.
In this fast-moving landscape, AI is set to help financial organisations in multiple areas: from better engaging with customers and understanding their needs, to improving internal processes and reducing costs. Customers are not the only ones benefiting of AI adoption. Employees are now able to work smarter and to focus on what matters the most by removing repetitive tasks from their daily routine.
Among the many possible applications of AI in banking, there are two that are showing a consistent traction:
Customer Service Chatbot: Through the use of predictive analytics and cognitive messaging, chatbot, also called smart virtual agents, elevate the customer experience to a new level by providing 24/7 service and allowing the use of natural language to perform day-to-day transactions, anticipate customers' unique financial needs, and giving recommendations to help customers reach their financial goals. Through intelligent chatbots, banks are today able to provide a completely personalised experience, promoting relevant products and services at the right time and to the right person, thereby increasing customer satisfaction.
Customer Insights and Risk Management: Risk management has the one of the largest opportunity for incorporating and strengthening the use of AI. Using AI to scrape through different data sources such as credit scores, financial data, spending patterns help to determine a risk score of a customer based on his or her nationality, occupation, salary range, experience, industry and credit history. Moreover, AI can be used to reduce the strain of regulatory compliance and to overhaul the way banks detect financial crimes and frauds.
- Giacomo Ziani is Head of Marketing at Cognit