This article was contributed by Vital Shpakouski who is a copywriter at Mellowpromo.
Traditionally, the banking industry has been conservative in the process of modernization and is now quickly compensating for lost time. Innovation in techniques used in banking: artificial intelligence, blockchain, and biometrics replace conventional approaches to delivering services. New technologies are changing the approach to interaction with end clients and revolutionizing internal processes in the financial industry.
Of these, probably the most important is AI, which is revolutionizing the very nature of banking activities. Starting from fraud control and ending with a customized approach to the client, AI creates the basis for an intelligent and adaptive banking environment. In the following article, we shall discuss how these technologies are influencing the banking industry and how these can be of most value to this process of adaptation.
Disrupting the Experience of Customers
Banking for years was all about long queues, lots of documentation, and complex formal interactions. While digital banking has been advancing through the years, this experience is quite the opposite, which is a good thing. The new technologies are now pushing the way of convenience, customization, and access to new heights.
For instance, AI virtual assistants are helping in basic client relations, and these include answering common questions as well as performing transactions. They are a 24/7 system and provide quick and correct responses to the queries. On the other hand, the customer databases can be processed with the help of machine learning to offer tailor-made financial products to the customers and in turn, help the banks to satisfy the requirements of each customer.
It’s also about something more: enhancing the relationship with the customer. The more the bank understands its clientele, the more information and assistance it can provide to its customers on issues that are most important to them, which will make for a much better overall user experience.
Enhancing security for business and minimizing the risk of fraud
The banking industry has one of the major concerns of security, and as the technology evolves, it is becoming more secure to transact. Historically, most fraud-detection programs simply act to verify a customer’s activity in the past, and then sound the alarm when some fraud has already been performed. New AI systems are therefore proactive in that they can analyze patterns as activities take place in real-time and develop methods of identifying unusual transactions and such like, and raising alerts before such transactions are completed.
Computerized fraud identification tools alert users of any suspicious spending behaviour as seen through large purchases from abroad or any large transactions. This assists the bank in a way of protecting their clients. Fingerprint scans and facial recognition enhance the level of security to ensure that no fraudster will access any account a s/he is not allowed to.
The problem that banks face today is, how do they continue to outwit such advanced cyber-criminals. These changing threats can be learned by GenAI in banking, which would allow banks to progress and continue to enhance the capacity to counter such risks in real-time. It is such development that constitutes the groundwork in establishing trust in the construction and maintenance of the financial system.
Conclusion
The banking industry is at that rather important stage of its evolution when it is impossible to exist without the introduction of new technologies. Innovations like AI, blockchain, and automation are some of the current disruptive technologies that currently affect every aspect of banking from customer touchpoint to the back end. Therefore, the banks that are in a position to incorporate them into their strategic capability will be in a better position to face future challenges that the world of digitalization is going to offer.
However, this transition has to be done for real. While integration of the technology intensifies, issues to do with ethics, the requirement to be more open, and the development of trust are critical. Those institutions that are capable of weighing the forces and interests of innovation against the countervailing forces and interests of responsibility are the institutions that will not only survive but will come to dominate the banking revolution.
About the author
Vital Shpakouski is a philologist, professional translator, former volunteer and teacher, entrepreneur, and seller with 13 years of experience. Now he is a copywriter at Mellowpromo, writing about everything that helps a business grow and develop.
Last Updated on November 7, 2024 12:04 pm CET
