Artificial Intelligence (AI) and the Future of Banking

Published on 02/05/2020
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Artificial intelligence is not only changing the way we go about our lives at home or at work, it is having a tremendous effect on industries across the world, most importantly at this stage, the banking sector. A.I has already disrupted banking in major cities, and is set to keep disrupting the way we take care of our hard earned money as we move deeper into the 2020’s. Let’s explore the concept itself, as well as the ways in which it is being applied in banking, while also taking a look at the primary areas of concern for consumers, as well as the importance of keeping up with technological trends moving into the future.

Artificial Intelligence (AI) And The Future Of Banking

Artificial Intelligence (AI) And The Future Of Banking

What is A.I?

Artificial intelligence is a computer science trend, referencing a process called machine intelligence. This intelligence is in contrast to what you would traditionally associate natural intelligence, which is displayed by humans. With the rapid rise of technology over the last two decades, machine learning has taken exponential leaps and with it, it has become easier for us to go about our day-to-day activities, including banking, organising transport, and even using popular dating apps. A.I is everywhere, and is showing no signs of slowing down.

New Applications of A.I In Banking

Traditionally the financial services sector can be slow in adopting new technologies, but when it comes to the banking sector, a recent study suggests that over half of executives are investing in the development of A.I as part of the existing goals attached to their roles. The most evident ways in which A.I has been introduced into the sector already includes the way customer service gets handled, particularly through their use of chatbots. These bots are programmed to handle some of the more tedious account requests, allowing actual humans to handle the more complicated processes. This is evident when it comes to asking for assistance on banking apps, or when reaching out for assistance using their websites. Another practical application includes security advancements and getting better at detecting fraud. Analytics, for instance, which can gather data on typical account holder banking patterns, or simply recognise the user from practical security checks like fingerprint scanning and facial recognition. This makes banking safer than it’s ever been.

New Applications Of A.I In Banking

New Applications Of A.I In Banking

Current and Future Areas of Concern

Artificial intelligence can be a great asset in terms of improving productivity, but a current area of concern is that technology will get so advanced, that some jobs will become all the more redundant. Call center agents, for example, may eventually fall away altogether, especially as A.I gets better at handling user requests. From a business perspective, this also lowers overheads significantly, especially in tight global economic times. This is a big problem that could increase unemployment rates and also create hostility between people and A.I (robots). A future concern also relates to hacking and cybersecurity: if a hacker gains access to A.I services, an entire company, especially those that operate in the digital space only, can be vulnerable to exposure and possible fraud.

The Importance of Keeping Up With Technological Advancements

Companies are encouraged to always keep up with the latest technological advancements, especially those in the banking sector. This is also relevant for consumers, who will find it convenient to use A.I for banking and other core day-to-day services, but knowing about the risks attached and doing what you can to make sure your money and identity remain protected is very important. Cyber fraud insurance and other cybersecurity tools are becoming all the rage with good reason, and if banks are looking into it, you should do the same as a consumer too.

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