Banking is one of the main sectors undergoing significant transformation with the advent of AI (Artificial Intelligence). Being a de facto capital-rich industry, the banking industry has the necessary resources to invest in machine learning .
According to a survey conducted in the UK, over 80% of people don't trust AI with their money. This is perhaps understandable given the anxiety surrounding the idea of autonomous computers, and let's not forget the fact that there is not much understanding around how AI basically works
AI in the banking sector.
The potential of AI in banking is enormous. According to a report by Business Insider, it offers, among other things, total cost savings of up to $443 billion by 2020.
The same report estimates that savings in each middle-office, that is, in some groups of employees in financial services, will be up to $217 billion, mainly through the application of AI in Know Your Customer.
Machine learning has particular applications in the security sector, especially the ability to adapt to new threats and prevent fraud with ID verification. This could be a particular advantage in combating cyberattacks, where attack trends are unpredictable and constantly evolving.
Most banks are investing in AI-powered customer service. One of the most popular uses of Artificial Intelligence in banking is chatbots. These bots respond to user queries and can perform basic functions, such as blocking credit cards and alerting customers to unknown payments. In addition, banks are investing in back-room AI that can provide solutions to many different issues.
Most importantly, banks are not going to invest in AI unless it is completely safe and reliable. This would put both their operations and customers’ money at risk. While the fear surrounding Artificial Intelligence persist, we should not forget that it helps keep people safe.
