With a depleting workforce and increasing workload banks in the UK and other nations have started adopting the practice of using AI. Both machine learning and AI have proved very useful in the financial industry, especially for loans, FAQ’s, and other criteria.
Other areas wherein AI and machine learning come in handy are through common search queries. The mechanism also makes use of human errors to showcase the closest results based on past searches.
Internet of Things (IoT) and cloud computing is also adding value to digital technology transformation. Besides banks, other hi-tech, and telecom industries have started investing in these areas for saving large money sums, building efficiency, and increasing productivity.
Additionally, AI and other technologies have helped these industries to improve customer experience. However, the banking sector is indulging in it for quick responsiveness, safer banking, promotion of mobile banking, loans, and investment management.
Different Ways Banks Have Started Adopting AI
Many banks are switching from traditional voice recognition to AI-powered chatbots. The reason for this change would majorly consist of the unrecognizable voice responses. Moreover, the banking sector is indulging in conversational machine learning systems.
Therefore, user interaction gets captured every time. Banks have started using them to provide the optimum financial suggestions to the user. Many users get surprised when they use it for the first time.
Therefore, unlike contacting customer care, chatbots have enabled banks that have implemented them with the latest technology to provide an immediate response.
AI has significantly improved telephone banking for callers. Primarily, the conversations were identifiable with wave-length-based audio cues. However, the latest trends incorporate AI, and therefore, there is no mistake in recognizing the PIN through voice.
Moreover, machine learning and AI technology have become capable of suggesting robust password options for a very long time. It has made online banking customers more self-confident, and reliable on the banks that have adopted the technology.
Maintaining AI-based password generated practices has improved banking password hygiene and played a role in reducing online attacks.
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Promotion of Mobile Banking
The option of visiting a physical bank has completely diminished in parts of Europe and Asia with the usage of mobile banking. The facility has allowed people to pay bills, recharge, shop, and learn about new offers.
As customers make more use of smartphones, or other gadgets to visit websites, AI incorporates many practices. These include collating, comparing, and showcasing the best results for the customers on different apps.
Banks also provide regular offers, discounts, and deals for shopping through apps compared to browsers for understanding customers’ interests.
Easy Loan Applications
At times, bank customers require an urgent £1000 loan. The traditional practice involved visiting a physical bank. After that, a person had to submit the filled and signed personal application with documentation.
Also, the person sitting at the desk would provide the best loan options to the borrower. However, new practice with AI-based technology showcases best loan options for emergency funds. An easy online application and documentation follow it.
Besides this, a borrower can choose from a range of online loans and get the amount directly transferred into the account. The strong recommendation from AI-based systems has made availing money faster and easier for the borrowers while sticking to the guidelines.
Relying on stock gurus or brokers will become significantly negligible in the future due to AI-based technology. However, some people might still go to a person even after receiving the best options for reassurance.
However, the gurus or brokers would come back to the same solutions based on the investor’s portfolio. The AI and machine learning systems make use of world market monitoring and offer predictions based on user searches as well as preferences.
Unfortunately, due to the trust issues of many people with new technology, the dependency on it might take some time. It would also get delayed by investors that hardly rely on technology. However, many banks have started assisting customers using AI during offline hours.
Therefore, the habit of adopting results based on AI, and machine learning is continuously progressing, especially in the banking, hi-tech, and telecom sectors. A July 1st, 2019 article in The Guardian stated that mobile banking would become more prominent than high street bank visits by 2022.
According to the article, seventy-one percent of UK citizens would use mobile banking apps by 2024. Two-thirds of the adult British population used online banking in 2018. In the same year, forty-eight percent catered to mobile banking.
Additionally, the report stated that by 2024, the total branch visits would decline by fifty-five percent. One of the significant announcements included the closure of two-third Britain bank branches in the last thirty years.
As per the news article, more than 20,500 UK bank branches were there in 1988. However, in 2018, only 7,586 remained. However, AI, machine learning, and other digital technologies bring a lot of privacy concerns.
According to many types of research, seventy percent of millennials have no issues with data scanning with a smart machine. However, they demand efficient, fast, and all-day customer service. The researches also indicate that forty percent of non-millennials have accepted the concept of AI banking.
Besides the research results, a few UK and other national banks have embarked on trading through voice activation. Therefore, customers engaging with it can make use of sudden news stories online, or on TV to make buying decisions.
However, the dire fear of AI remains majorly in the lives of bank employees and bankers. Many articles suggest that robots and AI would overtake jobs, especially in the banking industry by 2030.
The precise capability of automation, zero management costs, and all-time efficiency would replace human errors, inflexibility, and salaries. According to many studies, a significant impact would occur on mid-level employees.
Some of the targeted professionals would include bookkeepers, auditing clerks, accountants, and retail salespersons. Therefore, AI, machine learning, and other digital transformation technologies have started paving their way to improve many industries, including banking.
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In the Nutshell
Conclusively, the significant impact of AI would incorporate in five different ways. These include swift responsiveness, secure banking experience, shift to mobile banking, the easy loan application process, and intelligent investment management.
The major drawback of digital technologies would include a boost in unemployment, low requirement of mid-level employees, and even lower compensation. Therefore, new technologies come with both advantages and disadvantages.