In the recent times, the banking industry foresees an immense scope of growth in the coming times. Thanks to the many innovations and technologies evolving over the past decade. We see redefined financial and banking services that are faster, accurate, reliable and convenient for the masses. The most common banking innovations are around cloud, Robotic Process Automation (RPA), Blockchain, Advanced analytics, Internet of Things (IoT) and of course Artificial Intelligence.
The way financial services are delivered today has changed – in terms of channels used, services offered and facilities availed. The age of fintech innovations began when the world was hit by financial crisis in 2008 and banks had to be reluctant or more rational in making lending decisions.
FinTech innovation was much needed to explore the possibilities of numerous areas that were ready for disruption. Furthermore, today fintech innovations have reached a whole new level with the rise of Artificial Intelligence (AI). Traditional banks have been exploiting AI to avail cloud-based solutions for extending better and improved experiences to their customer base.
3 Ways How AI in FinTech Innovations Helps Banks
- Assisting customers with financial services – While there have been constant efforts made to improvise customer experience in banking, AI has helped to take this initiative to the next level. Chatbots are popularising because of their intuitive capabilities to offer a personalised experience to customers by providing them financial advisory on several products, stocks and other investments.
- Predictive Analytics – As the financial data in banks increases with new customers, products and services offered every single day, the need to effectively manage this data also becomes imperative. AI helps in providing detailed insights by analysing the patterns in the banking data and thus contributing to higher revenues, improved sales practices and smoother business operations. Consider a customer whose instalment remains pending for over 90 days. Predictive analytics can help banks to study the credit performance and identify signs like how likely they are to pay on time and what are the probable measures that can be taken in order to recover the unpaid loans.
- Decision making – Artificial Intelligence enables the financial institutions to ask the right questions at the right time to gather pertinent data, which can further be used for analysis and decision making. These decisions can promise overall performance upgrade of financial institutions in view of lending decisions, risks involved and more such factors.
The potential of AI is far beyond what is discussed above. In the future, FinTech’s will come up with many other innovations that will deploy this technology into banking business for promising outcomes.