Artificial intelligence is the stuff of science fiction. Or it used to be anyways. Now, applying machine learning, technology companies are using artificial intelligence to reshape a panoply of industries, and change what customers are coming to expect. This extends from entertainment to dating apps — and yes — even to banking.
In truth, we’re still pretty far away from robotic bank tellers who know you by first name and can recommend banking products. But the power of the early-stage artificial intelligence is already transforming the way we bank, in ways that customers may not even realize.
Building this kind of tech often requires partnering with FinTech companies, who can dedicate their time and effort to the tech side while banks focus on banking. Here’s some of the solutions already up and running and financial institutions around the world:
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Heightened Security and Fraud Prevention
Cybercrime is an ever growing concern across most industries. But few are as susceptible to it, and few have worse consequences of a breach than the financial industry. Data breaches can expose thousands of customers to identity theft. And even a brief access to someone’s identity can wreak terrible financial havoc, both for the client and for the bank.
That’s where AI comes in. Humans are pretty good at pattern recognition, but it’s simply impossible to take a look at the terabytes of data that flow through a bank and pick out irregularities. A computer, however, can easily analyze information and detect when fraudulent purchases come up, automatically taking action to prevent further fraud.
This is one of those win-win scenarios for both customers and the bank that supports them. Banks know their products are more secure, customers will be able to have more trust, and financial damages will be mitigated. Customers know their money and identities are more safe. Artificial intelligence is already proving to be a boon for security.
2. Customer-centricity and Personalization
We’ve written a lot about this, and we’re gonna write about it more — this is the next big thing in the financial industry, and will be a cornerstone of a profitable strategy. In short, customers are wanting an experience tailored to their individual requirements and desires, and they’re getting used to it in most other of their digital experiences.
Banks are hamstrung by old technology that means innovation is slow, and banking experiences are necessarily generalized. This just won’t cut it anymore with big tech players and challenger digital banks coming up and offering agile, customized banking. And with Open Banking, changing financial institutions has never been easier.
FinTech, and the artificial intelligence it brings with it, is the answer to customer-centricity and personalized experience. Banks have a ton of data, and if there’s one thing this iteration of artificial intelligence is good at, it’s analyzing data and using it to optimize an experience. By leveraging the ample information banks have on their customers, they can break down microsegments and offer more tailored promotions and products. And with the right FinTech partnership, it’s easier to implement than many banks might think.
3. Predictive Analytics
Offering a personalized experience is great, but what if banks could accurately predict what a customer wants (or more importantly, needs) before they even know it? Predictive analytics powered by artificial intelligence is very real, and can be used so banks can provide a seamlessly efficient financial environment for their customers.
In a previous blog on AI we wrote, we hypothesized a scenario where a customers car finally gave up the ghost and they needed a car loan. Imagine a world where that loan was already optimized for that customer before they even requested it — based on analyzing data that showed a history of visits to the mechanic, or the closure of a lease.
That world is very real and could be here right now, with the right artificial intelligence solution. With the ability to comb data and interpret it more effectively than any human, having the right product available the second (or even before) a customer needs will be the experience customers expect in the future.
Conclusion
Artificial intelligence is finally becoming real life, and no one stands to benefit more than banks or their customers. All it takes to get going is the right partnership with a FinTech company like Zafin. Ready to learn more about the transformative power of AI? Get in touch with our experts today!
About Zafin
Zafin (@zafin) is a leading financial technology provider that enables banks to form richer, more personalized client relationships. Built from the ground up for financial services, its platform empowers banks to enhance revenue and operational efficiency. Founded in 2002, Zafin sits among North America’s top FinTech companies, and is trusted by retail and corporate units at some of the largest banks worldwide. Headquartered in Toronto with global offices, Zafin has a proven track record with a 100 percent client retention rate as validation.
Cam Smith
Cam is the Product Marketing Strategist at Zafin. With a background in journalism and a passion for blogging, Cam strives to tell compelling digital stories. At Zafin he will share the latest trends and news in the FinTech world, and share Zafin’s role as leader in the industry. Follow him on Twitter @CamSmoth
