AI APPLICATIONS
THE TRANSFORMATIVE APPLICATIONS OF AI IN THE BANKING SECTOR
AI is proving a game changer in the financial industry , where it is revolutionising processes in everything from customer experience to fraud prevention
WRITTEN BY : WILLIAM SMITH
With the financial world having bifurcated into establishment giants and fintech challengers , one of the key differentiators has been the use of AI . As the old guard increasingly wakes up to the reality of digital transformation , however , it too is now adopting techniques including machine learning to unlock latent efficiencies . Indeed , according to McKinsey , across the globe AI has the potential to deliver $ 1trn of additional value in the banking sector every year .
The scale of that potential is down to the particularly broad range of use cases for AI in the industry , not least in customer experience , as Babak Hodjat , VP Evolutionary AI , Cognizant , explains : “ One of the most important use cases for AI in banking is to improve personalisation for customers – especially for incumbents looking to compete with digital natives . This is because AI can spot novel strategies that would never have been identified by human data scientists , and , in turn , allow companies to take full advantage of today ’ s massive data sets – ultimately helping to provide hyper personalised experiences tailored to specific customers . For example , through the use of advanced chatbots and tailored content and interfaces in apps and on digital platforms .” aimagazine . com 55