10 Benefits of AI in the Banking and Financial Sector

Artificial Intelligence has almost become a disrupter in every industry and so banking is not the exception to that. The banking sector became more customer-centric and technologically powerful when banks started using Artificial Intelligence in their web, applications, and online services.
AI in banking helps banks to make decisions based on the data and reduces the cost by increasing productivity. According to a report of Business Insider, approximately 80% of banks are aware of the potential benefits of Artificial Intelligence in banking. And another report says that banks are projected to save around $450 Billion by implementing AI in banking.

Uses Of AI in Banking and Finance
AI technologies have become the most important part of any industry in today’s world. Here are some AI applications in the banking industry.

Cybersecurity – Every day a huge number of digital transactions take place as people use to pay money, deposit money or checks, withdraw money. And in today’s world people uses online banking applications or third-party applications for doing all that. So there is a huge chance of cybersecurity. So AI in banking is an increasing need for cybersecurity and fraud detection AI can help banks to track the loophole in banking and minimize the risk.
Chatbots – As people don’t want to visit banks nowadays so whenever they face some issues and have some queries then they want some assistance from the bank side. And here chatbot comes to the picture. By integrating chatbots into banking apps, the banks can ensure that they are available for the customers 24*7.
Loan and Credit Decision – An AI-based loan and credit system can check the behavior and pattern of a customer with limited credit history to determine if it is worthy for the bank to give credit to them or not. AI in banking helps the bank to make more profitable, informed, and safe loan and credit decisions. No one can deny that credit report systems are often riddled with errors, but when AI came to the picture, it changed the game.
Tracking Market Trends – AI in banking sectors helps banks to process a huge volume of data and predict the latest market trends. It helps to evaluate the market sentiments and suggest the best investment options in stocks, bonds, and cryptocurrency.
Data collection and Analysis – Bank records millions of transactions every day which generates a huge volume of information. So, structuring and analysis of these huge amounts of data are impossible manually. AI in the banking sector helps to structure and analyze these data which leads to correct decision making.
Customer Experience and Customer Acquisition – Customers are always seeking a better experience, which leads to customer acquisition. For example, ATMs help customers to deposit or withdraw money 24*7. So, customers don’t need to go to the bank. Nowadays customer completes their KYC and can even open their bank account from home. So, they don’t need to go to the bank for that. AI in banking helps to capture this customer information accurately.
Risk Management - Global factors like currency rate fluctuations, political critical situations, or natural disasters have a serious impact on the banking industry. It's most important to take decisions at that time. So, AI in banking helps to analyze the risk of that situation and also provides a solution for that.  
Regulatory Compliance – Where it’s about money then there comes regulation. The government uses regulatory authority. Bank maintain their internal regulatory authority. AI in banking with the help of NLP helps the bank to improve its decision-making process. Which makes their operation faster and more efficient.
Predictive Analytics – Two major parts of AI general-purpose semantic and natural language applications are broadly used for Predictive Analytics. Artificial Intelligence can easily identify any specific pattern in data and correlation between the data. Which leads to some unknown sales opportunities. These metrics can even help to cross-sell any banking product like a credit card.  
Process Automation – RPA or Robotic Process Automation algorithm in Artificial Intelligence increases operational accuracy as well as efficiency and reduces costs by automating time-consuming repetitive tasks. Some banks are presently using Robotic Process Automation to increase efficiency and boost transaction speed.