{"id":13138,"date":"2022-03-25T10:20:47","date_gmt":"2022-03-25T10:20:47","guid":{"rendered":"https:\/\/www.esds.co.in\/blog\/?p=13138"},"modified":"2022-04-25T07:38:25","modified_gmt":"2022-04-25T07:38:25","slug":"applications-benefits-of-ai-in-banking","status":"publish","type":"post","link":"https:\/\/www.esds.co.in\/blog\/applications-benefits-of-ai-in-banking\/","title":{"rendered":"Applications &#038; Benefits of AI in Banking"},"content":{"rendered":"\n<p style=\"text-align: justify;\">AI is a technology that has impacted every industry vertical including the banking and finance sector. AI in banking reduces expenses by boosting productivity and making the decision process fast, and accurate. According to a report by Business Insider, almost 80%of banks are aware of the potential benefits of AI in the banking sector. It also says that by 2023,&nbsp;banks are estimated to save&nbsp;roughly&nbsp;$447 billion&nbsp;by deploying&nbsp;AI applications. The applications of AI in banking are many and so does the benefits of AI in banking.&nbsp; Let\u2019s take a look at some of them.<\/p><div id=\"ez-toc-container\" class=\"ez-toc-v2_0_76 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.esds.co.in\/blog\/applications-benefits-of-ai-in-banking\/#Applications_of_AI_in_Banking_and_Finance\" >Applications of AI in Banking and Finance<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.esds.co.in\/blog\/applications-benefits-of-ai-in-banking\/#Cybersecurity_Fraud_Detection\" >Cybersecurity &amp; Fraud Detection<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.esds.co.in\/blog\/applications-benefits-of-ai-in-banking\/#AI_Chatbots\" >AI Chatbots<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.esds.co.in\/blog\/applications-benefits-of-ai-in-banking\/#Loan_Credit_Decisions\" >Loan &amp; Credit Decisions<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.esds.co.in\/blog\/applications-benefits-of-ai-in-banking\/#Tracking_Market_Trends\" >Tracking &amp; Market Trends<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.esds.co.in\/blog\/applications-benefits-of-ai-in-banking\/#Data_Collection_Analysis\" >Data Collection &amp; Analysis<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.esds.co.in\/blog\/applications-benefits-of-ai-in-banking\/#AI_Enhances_Customer_Experience\" >AI Enhances Customer Experience<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.esds.co.in\/blog\/applications-benefits-of-ai-in-banking\/#AI_for_Regulatory_Compliance_in_Banking\" >AI for Regulatory Compliance in Banking<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.esds.co.in\/blog\/applications-benefits-of-ai-in-banking\/#Predictive_Analytics\" >Predictive Analytics<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/www.esds.co.in\/blog\/applications-benefits-of-ai-in-banking\/#Benefits_of_AI_in_Banking_Finance\" >Benefits of AI in Banking &amp; Finance<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/www.esds.co.in\/blog\/applications-benefits-of-ai-in-banking\/#Reduced_Operational_Costs\" >Reduced Operational Costs<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/www.esds.co.in\/blog\/applications-benefits-of-ai-in-banking\/#Improves_Customer_Support\" >Improves Customer Support<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/www.esds.co.in\/blog\/applications-benefits-of-ai-in-banking\/#Intelligent_loan_and_credit_disbursement\" >Intelligent loan and credit disbursement<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/www.esds.co.in\/blog\/applications-benefits-of-ai-in-banking\/#AI_helps_banks_in_regulatory_compliance\" >AI helps banks in regulatory compliance<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/www.esds.co.in\/blog\/applications-benefits-of-ai-in-banking\/#So_As_A_Banker_What_Is_Your_Next_Step\" >So, As A Banker, What Is Your Next Step?<\/a><\/li><\/ul><\/nav><\/div>\n\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"1200\" height=\"628\" src=\"https:\/\/www.esds.co.in\/blog\/wp-content\/uploads\/2022\/03\/Ai-In-Banking-1.png\" alt=\"AI in Banking\" class=\"wp-image-13139\" srcset=\"https:\/\/www.esds.co.in\/blog\/wp-content\/uploads\/2022\/03\/Ai-In-Banking-1.png 1200w, https:\/\/www.esds.co.in\/blog\/wp-content\/uploads\/2022\/03\/Ai-In-Banking-1-300x157.png 300w, https:\/\/www.esds.co.in\/blog\/wp-content\/uploads\/2022\/03\/Ai-In-Banking-1-1024x536.png 1024w, https:\/\/www.esds.co.in\/blog\/wp-content\/uploads\/2022\/03\/Ai-In-Banking-1-150x79.png 150w\" sizes=\"auto, (max-width: 1200px) 100vw, 1200px\" \/><\/figure><\/div>\n\n\n\n<h3 class=\"has-text-align-center wp-block-heading\"><span class=\"ez-toc-section\" id=\"Applications_of_AI_in_Banking_and_Finance\"><\/span><strong>Applications of AI in Banking and Finance<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p style=\"text-align: justify;\">Initially, AI was majorly used for increasing operational efficiency. This has changed post-pandemic where AI is used for automating processes and deriving insights. Here are the 8 major applications of AI in banking.<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"1200\" height=\"628\" src=\"https:\/\/www.esds.co.in\/blog\/wp-content\/uploads\/2022\/03\/Ai-In-Banking-2.png\" alt=\"Applications of AI in Banking and Finance\" class=\"wp-image-13140\" srcset=\"https:\/\/www.esds.co.in\/blog\/wp-content\/uploads\/2022\/03\/Ai-In-Banking-2.png 1200w, https:\/\/www.esds.co.in\/blog\/wp-content\/uploads\/2022\/03\/Ai-In-Banking-2-300x157.png 300w, https:\/\/www.esds.co.in\/blog\/wp-content\/uploads\/2022\/03\/Ai-In-Banking-2-1024x536.png 1024w, https:\/\/www.esds.co.in\/blog\/wp-content\/uploads\/2022\/03\/Ai-In-Banking-2-150x79.png 150w\" sizes=\"auto, (max-width: 1200px) 100vw, 1200px\" \/><\/figure><\/div>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Cybersecurity_Fraud_Detection\"><\/span><strong>Cybersecurity &amp; Fraud Detection<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p style=\"text-align: justify;\">AI along with machine learning is capable of easily identifying fraudulent activities and alerting customers and banks. In 2019, the financial sector was the most targeted industry for cyberattacks accounting for 29% of the total. AI can be a game-changer in the finance sector to stop cyberattacks.&nbsp;<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"AI_Chatbots\"><\/span><a href=\"https:\/\/www.esds.co.in\/artificial-intelligence\"><strong>AI Chatbots<\/strong><\/a><span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p style=\"text-align: justify;\">By combining chatbots with banking apps, the banks will be available for the customers round the clock 24*7. Chatbots&#8217; capability to comprehend customer behavior helps in offering personalized customer support and recommending the right financial services and products accordingly.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Loan_Credit_Decisions\"><\/span><strong>Loan &amp; Credit Decisions<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p style=\"text-align: justify;\">An AI-based loan and credit system can examine the behavior and patterns of consumers with little credit history to decide their creditworthiness, and in case of unusual behavior, the system sends a warning lowering the chances of default.&nbsp;<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Tracking_Market_Trends\"><\/span><strong>Tracking &amp; Market Trends<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p style=\"text-align: justify;\">With AI, banks can process big volumes of data and foresee the latest market trends, currencies, and stocks. Based on this AI can fasten the decision-making process for clients as well as banks and also can suggest investment options.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Data_Collection_Analysis\"><\/span><strong>Data Collection &amp; Analysis<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p style=\"text-align: justify;\">The data generated by banks every day is so huge that it becomes a tedious and very challenging task for employees to structure it. AI-enabled solutions can assist in systematic data collecting and analysis in such circumstances. This can be further utilized in fraud detection or deciding creditworthiness.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"AI_Enhances_Customer_Experience\"><\/span><strong>AI Enhances Customer Experience<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p style=\"text-align: justify;\">AI solution eliminates the time taken by customers to complete tasks such as completing the Know Your Customer (KYC) process, applying for loans and credit by automating them.&nbsp;<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"AI_for_Regulatory_Compliance_in_Banking\"><\/span><strong>AI for Regulatory Compliance in Banking<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p style=\"text-align: justify;\">AI with the help of deep learning and NLP can read compliance requirements for financial organizations and make the compliance process faster.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Predictive_Analytics\"><\/span><strong>Predictive Analytics<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p style=\"text-align: justify;\">AI can catch specific patterns and correlations in the data and predict the outcome which helps in discovering new sales opportunities, cross-sell opportunities that lead to increased ROI.<\/p>\n\n\n\n<h3 class=\"has-text-align-center wp-block-heading\"><span class=\"ez-toc-section\" id=\"Benefits_of_AI_in_Banking_Finance\"><\/span><strong>Benefits of AI in Banking &amp; Finance<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p style=\"text-align: justify;\">AI has the power to automate, enhance and fasten every operation in the banking industry. The benefits of AI in the banking industry are immense. Here, we have listed a few of the many benefits of AI in the banking industry.<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"1200\" height=\"628\" src=\"https:\/\/www.esds.co.in\/blog\/wp-content\/uploads\/2022\/03\/Artboard-3.jpg\" alt=\"Benefits of AI in Banking &amp; Finance\" class=\"wp-image-13141\" srcset=\"https:\/\/www.esds.co.in\/blog\/wp-content\/uploads\/2022\/03\/Artboard-3.jpg 1200w, https:\/\/www.esds.co.in\/blog\/wp-content\/uploads\/2022\/03\/Artboard-3-300x157.jpg 300w, https:\/\/www.esds.co.in\/blog\/wp-content\/uploads\/2022\/03\/Artboard-3-1024x536.jpg 1024w, https:\/\/www.esds.co.in\/blog\/wp-content\/uploads\/2022\/03\/Artboard-3-150x79.jpg 150w\" sizes=\"auto, (max-width: 1200px) 100vw, 1200px\" \/><\/figure><\/div>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Reduced_Operational_Costs\"><\/span><strong>Reduced Operational Costs<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p style=\"text-align: justify;\">Banks use AI, machine learning, and NLP technologies to automate their processes. AI-enabled applications perform repetitive tasks efficiently and error-free accurately. This reduces operational costs and eliminates any human-made errors. Furthermore, using AI chatbots lets banks provide 24*7 reliable customer support that increases bank credibility. This also allows banks to cut down on the human task force required to handle the customer support process.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Improves_Customer_Support\"><\/span><strong>Improves Customer Support<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p style=\"text-align: justify;\">Customer satisfaction is directly proportional to revenue generation. The more customer is satisfied, the more he wants to buy from you. Therefore, customer support is a very vital function in any industry including banks. Coherent customer support will not only generate revenue but also increased brand reliability, good credibility, and customer retention. AI-enabled applications and chatbots provide the right services at right time to the customer more accurately and quickly which is challenging for humans to do.&nbsp;<\/p>\n\n\n\n<p style=\"text-align: justify;\">A very great example of this is a chatbot used in Bank of America with its ability to handle credit card debt reduction and card security updates, managed over 50 million client requests in 2019 alone.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Intelligent_loan_and_credit_disbursement\"><\/span><strong>Intelligent loan and credit disbursement<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p style=\"text-align: justify;\">Everyone is quite aware of how tedious is the loan application process due to the manual verification of the transaction history and credit history process. One of the prominent benefits of AI in banking as it automates the process such as KYC. AI&#8217;s ability to analyze the behavioral pattern and credit history pattern makes it an easy decision for banks to evaluate the creditworthiness of an applicant.&nbsp;<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"AI_helps_banks_in_regulatory_compliance\"><\/span><strong>AI helps banks in regulatory compliance<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p style=\"text-align: justify;\">Banking is an industry that is subject to often changing compliance rules. It is mandatory for banks to operate under current regulatory compliance. One of the compliances that bank has to follow is not to disclose customers&#8217; financial data which is likely to face cyberattacks. AI-based fraud analytics tools play an important role here as they catch unusual activities and patterns by hackers, and alert the banks about the same.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"So_As_A_Banker_What_Is_Your_Next_Step\"><\/span><strong>So, As A Banker, What Is Your Next Step?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p style=\"text-align: justify;\">Success in today\u2019s age depends on how quickly you change and embrace technology. Saying AI is positively affecting the banking and finance sector would be an understatement when, it is revolutionizing the entire gamut of operations of the banking industry, for good.&nbsp; Banks can hugely benefit from AI in terms of cost reduction and revenue growth by fully adopting AI in banking and finance. It gives banks a competitive edge over other financial institutions that will fail to or delay embracing AI in banking.<\/p>\n\n\n\n<p style=\"text-align: justify;\"><a href=\"https:\/\/www.esds.co.in\/\"><strong>ESDS<\/strong><\/a>, to help banks accelerate their journey to a digital space has a number of digital banking offerings such as hosted payment platform services, ATM solutions, document management systems, and much more. Get in touch if you want to explore ESDS\u2019 banking solutions.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>AI is a technology that has impacted every industry vertical including the banking and finance sector. AI in banking reduces expenses by boosting productivity and making the decision process fast, and accurate. According to a report by Business Insider, almost 80%of banks are aware of the potential benefits of AI in the banking sector. It&#8230; <\/p>\n<div class=\"clear\"><\/div>\n<p><a href=\"https:\/\/www.esds.co.in\/blog\/applications-benefits-of-ai-in-banking\/\" class=\"gdlr-button small excerpt-read-more\">Read More<\/a><\/p>\n","protected":false},"author":72,"featured_media":13182,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[1505],"tags":[1810,2889,2887,2229,2886,2888],"class_list":["post-13138","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-artificial-intelligence","tag-ai","tag-ai-in-finance","tag-applications-of-ai-in-banking-and-finance","tag-banking","tag-benefits-of-ai-in-banking","tag-finance"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.esds.co.in\/blog\/wp-json\/wp\/v2\/posts\/13138","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.esds.co.in\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.esds.co.in\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.esds.co.in\/blog\/wp-json\/wp\/v2\/users\/72"}],"replies":[{"embeddable":true,"href":"https:\/\/www.esds.co.in\/blog\/wp-json\/wp\/v2\/comments?post=13138"}],"version-history":[{"count":8,"href":"https:\/\/www.esds.co.in\/blog\/wp-json\/wp\/v2\/posts\/13138\/revisions"}],"predecessor-version":[{"id":13167,"href":"https:\/\/www.esds.co.in\/blog\/wp-json\/wp\/v2\/posts\/13138\/revisions\/13167"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.esds.co.in\/blog\/wp-json\/wp\/v2\/media\/13182"}],"wp:attachment":[{"href":"https:\/\/www.esds.co.in\/blog\/wp-json\/wp\/v2\/media?parent=13138"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.esds.co.in\/blog\/wp-json\/wp\/v2\/categories?post=13138"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.esds.co.in\/blog\/wp-json\/wp\/v2\/tags?post=13138"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}