What are the benefits of implementing an AI interface in personal banking for improving customer centricity in the BFSI sector?
Artificial Intelligence with its improved data processing capacity has augmented the security of online finance and helped the BFSI industry to streamline its systems. Advanced data analytics and smart algorithms have redefined the banking sector and helped it to counter fraudulent transactions by quickly identifying anomalies and patterns even amid humongous volumes of data.
AI has also enhanced customer experience by providing optimal solutions based on real-time data. AI bots, digital payment advisors, and biometric fraud detection mechanisms are even helping legacy core banking systems to transform themselves.
How can AI be leveraged to enhance the customer experience in personal banking?
From the perspective of the BFSI industry, AI, machine learning and automation have been immensely helpful in minimizing the drudgery of manual effort and have also reduced the prospect of financial risks. From the customer’s perspective, these technologies are making transactions much smoother and safer with minimal turnaround time.
Chatbots which are a significant part of the conversational AI market are predicted to reach a market share of $15 billion by 2024 and today no customer can imagine banking online without intelligent virtual assistants (IVA), intelligent interactive voice response (IVR) and of course chatbots. Thanks to Natural Language Processing (NLP), customers can now interact with AI Assistants round-the-clock and reduce their dependence on call center staff. AI has also helped to standardize and personalize service delivery across different net banking and e-banking channels and customers can now rely on predictive analytics to get customised financial recommendations.
AI can also streamline loan facilitation and help customers to avoid a laborious, paper-based application process. Customer records can also be updated faster now. While AI handles a huge volume of FAQs and most of the process-based work, banking executives can make time to be accessible to customers to remind them that their relationship with the financial institution is not entirely automated but is based on human values like trust, courtesy and respect.
How will the integration of AI into personal banking change the role of human bankers and customer service representatives?
AI-based systems can increase productivity by processing large volumes of information without human intervention or the possibility of human error. They can handle a high volume of FAQs and queries and minimize the processing time while reviewing Know Your Customer (KYC) information.
AI-powered chat boxes and voice assistance can provide personalized responses to customers and automated systems can also onboard new customers smoothly. One of the biggest strengths of AI is its proficiency in predictive analysis which can explore untapped sales opportunities and cross-sell opportunities to positively impact the revenue of the bank.
4. How can AI be used to personalize financial advice and recommendations to individual customers in the BFSI sector?
AI can analyse a customer’s financial profile and based on their current spending and saving habits, aid them in making well-suited investment decisions while setting sustainable financial goals. The robo-advisors are especially useful for customers who do not have deep knowledge of personal investments.
Robo advisors are even used in trading apps to recommend stocks and bonds. Budgeting apps are becoming popular too as they help users to pay bills on time, track spending and increase savings with customized financial planning and personalized insights.
5. How can AI interfaces in personal banking help identify and prevent fraudulent activity?
Customers now are increasingly engaged in diverse online transactions and chances of fraudulent activities like phishing, forgery of documents, and identity theft have also increased. This is where AI powered fraud detection software can help by easily identifying suspicious financial activity and alerting the customer.
AI algorithms can also predict the likelihood of fraudulent behaviour while automation tools do their bit to systemize and streamline large volumes of unstructured data. Biometric authentication tools protect sensitive information and AI enhances cybersecurity with its continuous monitoring capabilities. It empowers banks to prevent and tackle cyber-attacks and to shield internal banking systems from serious damage.