Will Artificial Intelligence Be Accepted in the Banking Sector?
Why are innovations revered? The reason, it saves time. And money, of course. Remember, the time our ancestors invented fire and the wheel. The fire made way for cooked food. The wheel helped save time. In recent times, scientific innovations not only help save time and money, but also completion of jobs in a accurate manner. In this article on Will Artificial Intelligence Be Accepted in the Banking Sector?, you will gain information on how the new AI technology has brought about changes or will provide benefits in the future.
Artificial Intelligence Will Reduce Costs for Banks
As per an estimate, business analysts assume that artificial intelligence will save nearly one trillion dollars for the banking industry. Surprised? But it is true. Imagine the money the banks cut from your account for withdrawing money from the ATMs. The major fall in bank expenses will come in the operating segment. But there are also challenges. The customers have to first become comfortable with the operation of AI.
What is the number of people in the entire globe? It may come to more than 7 billion. Now when you compare the number to devices (smart), the number of people are more. It means, that there are some areas in the world, where the concept of technology has to gain acceptance. But banking institutions and firms are pumping billions to AI startup companies to bring out new innovations. All the new discoveries and applications are focused on only one factor – to make the customers feel easy and enhance their satisfaction levels.
Now let us know how Artificial Intelligence can save money in the banking sectors.
Front Office – As per bank analysts, the saving in dollars due to AI will come to $490 billion. This is due to the reduction in branches, security personnel, cashiers, tellers, and other staff.
Middle Office – In this section, the saving amount may come to $350 billion. What does the middle office in banks usually cater to? Checking of proof such as KYC and data processing. These forms of checking may get abolished when AI steps in with proof checking.
Back Office – Customer care queries may get transferred to chatbots. As in recent times, people may do not have to go to banks to deposit and transfer money. The number of customer care service centers may reduce in number.
Use Cases For AI
Software companies such as Google and Amazon will contribute more to the financial services of banks with more innovations such as smart home assistants. To be honest, this will reduce the gap between technology and humans. There is one factor which points to the benefits of the combination of banking and artificial intelligence. They can do the job in an accurate manner. And, with special design applications, they can use sound, vision, and analytics to give the perfect result.
But there is also a challenge. In artificial intelligence, the software application can only work to its potential. In other words, based on the data fed into its mechanism. For example, when you make a call to a bank, you dial the customer care number. You have to answer the IVR, and then get transferred to the customer service. If you have a simple query, the doubt gets clarified at the first instance. You have no way to know if you are talking to a chatbot or a human. On the other hand, if the query is complex, the call may get transferred to a human. In other words, a chatbot designed out of AI application can only handle the simple queries. But a deep learning chatbot, made out of artificial neural networks can handle complex queries similar to human. The software applications, get written in numerous permutations and combinations so it can learn by itself.
When machine learning (the parent body of artificial intelligence) is combined together, then the applications can react to specific events and gain the general reasoning capability as well reacting to complex queries in an effective manner.
How Do The Banks Hope To Help Their Customers?
Let us take an example. Bank of America has pinned its hopes on Erica, the virtual assistant and have asked all of their customers to have a look. By making use of voice commands, touch or text, the customers can get details of their transactions, account balance and even transfer money. The virtual assistant can also fix meetings with human assistants.
Want to withdraw money from an ATM? Then you have to punch your pin in the device. In the future, image recognition will come for authentication. Now, you have a beard, mustache or complete shaved head. It is AI which will recognize your face and then give the money. Biometrics and workflow will take a commonplace in money withdrawals or digital transactions. There may be also chances of using a fingerprint or voice recognition.
Difference between AI in healthcare and banking
Although bank institutions are relying on AI applications to improve your satisfaction as a customer, not all are convinced. The reason, it is their hard earned money. And with numerous accounts of phishing all over the globe, they fear that the money will vanish in thin air. Only 35 percent of the population are confident that their personal data used in AI applications will stay safe.
But when it comes to health care, it is strange, that customers (you) are happy with the entry of AI in healthcare. The reason, the results will be accurate. Let us take an example. You have a rare disease, for which various tests have been done. Now there is a lot of data, and a physician may take lots of time to give the result. Whereas an AI tool will look into the data and give the accurate result in less time.
Why Do You Detest Artificial Intelligence and Other Innovations?
Bad news travels fast. Even bad situations become a permanent fixture in your sub-conscious mind. Just look at the vast number of movies which depict future innovations as evil. The trend started with Terminator traveled to A Space Odyssey and it is still running strong. Not to mention the Matrix series. In every film, the superior intelligence applicator turned on humans, and at last the Hero through his antics overpowers or destroys the artificial intelligence.
Motivation and Human Mind
Yes, these challenges have remained since the era of mankind. There was a popular theory in the 15th century, that the earth is flat. The sailors believed that they can fall off Earth into the Galaxy. But it all ended when Vasco Da Gama came to Goa. Likewise, the recent generation will also take a liking to Artificial Intelligence. Now, let us wait for a better future.
We have only touched the surface regarding the topic of will artificial intelligence be accepted in the banking sector? Let us take another case study regarding this topic. You have a company which caters to doorstep service of mobile repair in Hyderabad. Now, you have a team of 250 technicians all over the city, and once a customer books a service, your technician goes to the house and does the repair. The business is going strong, and you make all the payments via the digital option. Your company gets listed as one of the companies which provide top home care services in Hyderabad. In an unlucky turn of events, your credit card gets stolen. The thief has started making purchases via your credit card. He has also disabled the alerts. So no messages come to your mobile. However, if the bank has implemented AI in its applications, then the AI will sense a change in transactions and send an alert. The executive on his/her part will check if you receive the alert in your registered mobile. No, they will put a hold on any withdrawal and call you. Then you can take the required action.
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