AI in banking industry brings operational improvements

The banking industry is primarily a world of computers and networks. It’s boggling that the bulk of the world’s wealth is stored in databases and transactions are simply the exchange of information over networks. As impressive — or scary — as that might sound, artificial intelligence technologies are aiming to further revolutionize the way banking is done and to improve the relationships between banks and their customers.

There’s a reason why people deride banking hours; banks never seem to be open when you need them most, such as later in the day or on holidays and weekends. Our money doesn’t sleep, so why should the banks? Fortunately, Artificial Intelligence (AI) in banking is one of the most impactful applications of artificial intelligence through the use of conversational assistants, or chatbots, to engage customers 24/7. Customers are handling many things using chatbots, even private conversations regarding bank transactions, bank services and other tasks that don’t necessarily require human intervention.

For example, Bank of America introduced Erica, an AI assistant to help with customer transactions, and the bot has shown significant positive ROI. Many banks have quickly followed suit, although some saw mixed results.

In addition to fielding customer service inquiries and conversations about individual transactions, banks have been finding good results using chatbots to make their customers aware of additional services and offerings. For example, business customers might not be aware of merchant services and loan offerings that can help resolve payment or credit issues. AI-based assistants that are aware of customer patterns can engage the customer at appropriate times, such as when they are on the bank site or mobile app.

Furthermore, banks can now segment customers individually rather than sorting them into the traditional generalized customer buckets. By using AI-based pattern matching and behavioral analysis, banks are able to make the right offer or suggestion to the right customer, reward their best customers, and respond to immediate finance-related needs.

Finally, some banks are delving deeper into the world of AI by using their smart systems to help make investment decisions and support their investment banking research.