Artificial intelligence (AI) is revolutionizing the banking industry by providing practical solutions to long-standing challenges. One of these challenges is security, as synthetic identity fraud costs banks billions of dollars each year. Biometrics, combined with machine learning, can offer a high level of accuracy in detecting fraudulent identities, particularly in mobile banking. Initiatives like Worldcoin, which uses eye scans for authentication, are set to expand the use of biometrics in financial transactions.
Another issue AI can address is providing accurate financial advice to customers. By scanning various criteria and factors affecting investments, algorithms can guide customers in making effective investment decisions. These algorithms utilize causal networks, which mimic human decision-making processes and can analyze large amounts of data to predict market trends and make specific investment recommendations.
Customer service is also a pain point for banks, exacerbated by the effects of the COVID-19 pandemic and labor shortages. To improve customer service, banks can develop chat algorithms using technologies like ChatGPT to assist customers with common inquiries and issues. Integration of humans and AI can also streamline customer service by transferring queries seamlessly between the two, reducing wait times and avoiding the need for customers to repeat information.
Overall, AI-based technology offers solutions to major challenges faced by banks, such as security, investment accuracy, and customer service. These solutions have the potential to save banks money and improve efficiency in resolving these issues. With the practical applications of AI already available, it’s clear that AI is not just a future concept, but a present reality that will continue to shape the banking industry.
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