Banking Industry – While the finance industry is trying to leverage the potential of AI, the banking industry is also showing signs of interest and adoption in traditional banking processes. Below we have explained two of the biggest leaders of the banking and financial industry who have already introduced AI in their business processes.
Banking Industry – Brief Study Of Two Leading Banks Implementing AI:
JPMorgan Chase has currently introduced a Contract Intelligence Platform that can analyze legal documents and extract important data clauses and points. Previously, the organization observed that the manual review of 12,000 commercial credit agreement normally required approximately 360,000 hours. Due to the implementation of machine learning technology, it is possible to review the same amount of agreements in seconds. The firm also plans to introduce its virtual assistant to respond to service desk requests.
Wells Fargo announced the establishment of an Artificial Intelligence Enterprise Solutions team, that will work under Payments, Virtual Solutions, and Innovation Group, has three main goals:
- Increased connectivity for the company’s payment’s efforts
- Accelerated Opportunities
- Application Programming Interface for corporate banking customers
The company has already rolled out an AI-driven Chatbot through Facebook Messenger to provide its customers general information provider helpdesk. Well, this was not the first time Wells Fargo is communicating with the customers through Facebook.
Both banks have started leveraging AI in their processes. And further, will invest millions to enhance their capabilities with this evolving technology. But considering a generic point of view on how banks would really like to benefit from AI, we have listed some factors below:
How Banks Want To Leverage AI
1 – Chatbots and Virtual Assistants
Banks want to make use of chatbots and voice bots to interact with their customers and solve their issues before any of their human staff gets involved. The technology behind it, Natural Language Processing and generation will make it extremely difficult for people to ensure whether they are taking to humans or a bot.
Example: Bank of America has already developed an AI-powered Chatbot, Erica, that provides financial guidance to their customers through voice and text messages, without any human involvement.
2 – AML Pattern Detection
Anti Money Laundering – one of the biggest issues in the financial sector, can be solved by AI. Major banks across the globe are shifting their rule-based system to AI to make them more robust and intelligent. A transaction-monitoring framework can help in uncovering suspicious activities. The monitoring can start with a rule-based system, which can scan customer transactions for red flags. When a matching pattern is observed, an alert can be raised. Overall, it transfers the case to the bank’s internal investigation team for a manual review.
3 – Banking Industry and AI Trading
Fundamental Analysis of Cryptocurrency and stocks has become a part of the financial market ever since the introduction of digital currencies. Plus, in the fundamental analysis, investors can apply correlation to a coin or a stock valuation to range it qualitatively and quantitatively. It will also gage microeconomics to know about the health of the market and the organization that operates it. Certainly, with the integration of cryptocurrency and AI, the combined framework will make the execution of transaction limitless, diversified, and easier. In the end, it will become an infatuated and trustworthy network.
4 – Fraud Detection
Recent Financial Frauds:
- The year 2016, a bank in Bangladesh was robbed of $81 Million by some hackers by manipulating the bank’s SWIFT system.
- In 2015, hackers stole more than £650 million from hundreds of global financial institutions by gaining access to secure information.
- In 2009, the FBI cracked the largest phishing case. Account details of hundreds and thousands of people were leaked. Hackers transferred $1.5 million fake accounts.
Implementing AI can help fight identity theft by applying biometric identification system into the login module to strengthen the verification process. Besides that, AI can also recognize fraud transactions.
5 – Profiling Customers
Banking Industry – Banks want to offer customized communication and decision based on detailed profiles of each customer. Besides that, they could also use customer profiling and algorithm sorting to assess risks and precision target offers. Firstly, AI can use the vast mass of unstructured data to profile customers. Then Machine learning can analyze behavior patterns. Algorithms could also automate an increasing number of decisions. Finally, companies can use language analysis to word choice and syntax to predict decisions. Fund managers have already used this technology to assess the word choices of C-Suite executives for future company performance.
6 – Streamlining Processes
AI-driven technologies are changing the way enterprises are conducting their business processes. Banks want AI to handle Low-Value Processes. Where computers can scan and pars the documents. AI can make some decision-making processes with complete knowledge of the regulations and laws in each of the territory. Machine Learning and Image recognition can scan masses of documents, and take actions based on policies and regulations.
Banking Industry – AI represents a technology trend like no other. It might seem a realm of science fiction. But it is a real-world technology that is ready to be implemented in any business today. As high powered computing is becoming available and vast data sets are needed for training, AI solutions are becoming more accessible. The world has barely scratched the capabilities of AI.
High performers are going to utilize AI to transform the way they organize, grow, and run their financial businesses. They will implement the technology in an innovative way to reduce costs. And create better customer experiences for the customers and employees.
But in order to do so, they will have to completely transform how their organization functions and their workforce operates. By drawing the core elements of their processes, people, and their data, banks can position themselves to lead their industry as it enters a new era of AI-driven enterprises. Now it is the time that they get smart and embrace the transformational power of Artificial Intelligence.