The banking industry is undergoing a transformational shift driven by technological advancements and the growing demand for personalized and efficient financial services. Among the technologies at the forefront of this revolution is artificial intelligence (AI). AI is changing the way banks operate and shaping the future of the industry.
In particular, these three innovative AI-powered trends are altering the banking landscape.
1. Chatbots and virtual assistants.
One of the most noticeable changes in the banking sector is the proliferation of chatbots and virtual assistants. These AI-driven tools are becoming more prevalent as a way to improve customer service by providing immediate, round-the-clock assistance. They can answer questions, provide account information, and even process transactions, all in real-time. This enables customers to find solutions on their own, saving everyone time.
As AI technology continues to advance, chatbots are becoming more sophisticated. They can now analyze customer data to offer personalized recommendations and financial advice, helping customers make informed decisions about their money.
Chatbots can also be leveraged internally to quickly answer employees’ questions from within a financial institution's own knowledge base. This allows employees to instantly access valuable insights and resources, saving them time and effort.
2. Fraud detection and prevention.
AI is playing a pivotal role in enhancing the security of banking systems. Until very recently, banks have relied on traditional, rule-based Anti-Money Laundering (AML) transaction monitoring and name screening systems, which are often prone to errors. With the alarming increase in fraud-related crimes and ever-changing fraud patterns, enhanced AI components are being added to the existing systems to enable the identification of previously undetected transactional patterns, data anomalies, and suspicious relationships between individuals and entities.
This allows for a more proactive approach. One where AI is used to prevent fraud before it happens as opposed to reacting to it after the fact.
While these new AI applications can help to improve the accuracy of criminal activity detection, they can sometimes lead to greater complexity as organizations attempt to manage the large amount of data and workflows these apps are involved with. Look for a data agnostic solution that can help eliminate process complexities by integrating AI into the overall end-to-end AML and KYC processes.
[Discover how AI is revolutionizing the fight against financial crime. Watch the replay.]
3. AI-driven loan processing.
Managing loan processes is typically very time consuming, involving several manual tasks for data entry and process variability across countries. This makes it an excellent fit for AI and automation.
AI can streamline loan processes, making it faster, more efficient, and less error-prone. Machine learning algorithms assess applicant data, credit history, and other relevant information, helping banks make informed lending decisions and reducing errors in the process.
At Appian, we’ve seen the value of automation in the loan process. Addiko Bank has applied Appian to their loan and trade finance process, automating contract and documentation creation and reporting exception requests on demand for employees to review. This shortened the “time to yes” for loan approvals from more than seven days to only three, cutting customer wait times in half.
The future of banking and AI.
As AI technology continues to advance, we can expect even more exciting developments in the banking sector. These trends are not only improving the customer experience but also making banking more efficient and secure than ever before. Banks that embrace these AI-powered innovations are well-positioned to thrive in the ever-evolving financial landscape.
At Appian, we believe in the power of AI to transform financial processes. Our approach is simple:
Appian views AI as a partner and not a substitute for human labor.
Appian unifies enterprise data in a data fabric to power and train AI services.
Appian puts customers first by offering private AI. Not every AI vendor can say the same.
[Learn more about the power of AI process automation in banking.]
