Everything You Need to Know About AI in Banking
When people hear the term artificial intelligence, they tend to imagine robots and personalized assistants like Alexa or Siri. However, AI is used in a variety of industries, from construction to office management.
Artificial intelligence has come a long way since its first iterations. Previously, it could detect suspicious activity or alert users of any changes in their systems. Now, it’s used in both the banking industry and the finance industry for much more.
Here’s everything you need to know about AI in banking and how you can make use of it.
The Impact of Artificial Intelligence in the Banking Industry
Artificial intelligence brings a lot of the same uses for banking and finance that you can also find in other industries. It allows for predictive analysis, voice recognition, and for inputting large amounts of data more easily.
As of 2020, the global AI in banking market size was valued at $3.88 billion. It’s predicted to reach $64.03 billion by 2030.
One of the reasons for this expected growth is the impact of the recent pandemic. As more people began to work from home, banks and finance agencies had to adopt AI and machine learning tools to compensate.
AI use is also strengthening the competitiveness of banks by enhancing the customer experience and detecting fraud.
Benefits of AI in Banking
The banking industry benefits from artificial intelligence in a number of different ways.
First of all, it helps to reduce operational costs and risks to the organization. Normally, employees would have to deal with a lot of paperwork-heavy work. Automated processes can mimic these tasks while also eliminating unnecessary errors.
AI can also improve loan and credit decisions, as well as improve the investment process. These systems can look at behaviours and patterns to determine whether a customer is likely to default. As for investments, they can scour the internet for opportunities while also determining risk.
How to Use AI in the Finance Industry
One way you can get started with AI in your workplace is with an advanced reconciliation manager. This type of solution automates, reconciles, and allocates all your cash movements.
You can automate large-scale payables and receivables, create a digital cash ledger, and manage all the flows and types of payments of your group of companies. If you have a network of agencies or affiliate companies, you can also set up your AI solutions to manage and track the flow of money between them.
Does your data exist on multiple systems belonging to different providers? Utilize an API connect solution to collect and standardize it all.
Improve Your Banking Processes
Implementing AI in banking may seem like a complicated task, but it’ll help save a lot of time and money in the long run. It’s also something you’ll inevitably see much more of in the upcoming years.
Fennech can help you set up your own intelligent automation platform for finance, treasury, and payment solutions. Our platform integrates with your existing IT stack and banking partners.
Contact us to learn more about how we can help you become more efficient.