Banks are quickly taking on AI technology to improve the various divisions in their fold. With this implementation, research suggests that the industry could save as much as $1 trillion in efficiencies by 2030. While this might entail customers getting used to the idea of discussing their banking needs with a bot, the technology is already starting to worm its way into the financial sector through Robo investing and automated wealth management.
AI Makes Perfect Sense
When it comes to simple tasks, banks spend millions in salaries to keep people in positions merely to confirm transactions. Not only is this a major cost factor for the banks, but also poses a massive risk in the form of human error. With the introduction of AI, not only can these tasks be taken care of at a fraction of the cost, but it also does away with the human error element. A cost-saving initiative may also translate into savings for customers, as banking fees are known to be one of the biggest contenders when deciding on an institution. The implementation of AI, therefore, is imperative in order for banks to remain relevant and be able to compete.
Multiple Applications On The Cards
AI opens up a whole new world of financial possibilities in the finance sector as it can be applied in sales, wealth management, and even compliance spheres. With the right planning and execution, cognitive computing provides safer financial landscapes for transactions to be performed. This means something as simple as putting aside some money by opening a savings account with a well-known institution can take place entirely online and without any human interaction. The verification and compliance checks will be done electronically and a more sophisticated
Implementation Already Started
Around 40% of mortgage lenders have already started implementing AI, with the result being a week shaved off the application period. For banks, this means more applications through the doors faster which translates into more products on their books. For clients, it means finalizing their financial transaction at record speed. AI is used to check through the information provided and to spot potential fraud, application data, and eligibility before moving it along to the next phase in the process.
AI takes the cookie cutter approach to finance a little further by entirely automating the simpler tasks. Whether this would extend into actual decision-making.
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