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AI for Banks: Is It Only Hype?

Every fiduciary interaction involves data and a human component, so artificial intelligence and emotion AI are uniquely positioned to enhance the banking interface in the years to come. Rana Gujral, CEO at Behavioral Signals explains that by understanding the opportunities and challenges facing financial institutions today, AI technology can unlock a plethora of possibilities to increase customer retention, customer satisfaction, and even increase revenue.

You are smart with your money. You budget carefully, research intensely, and only trust your savings with established institutions… so shouldn’t those institutions match your wisdom when it comes to smart technology?

Artificial intelligence (AI) can elevate the conversation between customers and bankers. Every fiduciary interaction involves data and a human component, so AI is uniquely positioned to enhance the banking interface in the years to come.By understanding the opportunities and challenges of integrating AI into banking systems, managers can unlock a vault full of possibilities.

Sound Investments: You Make The Call

The vast majority of banking transactions are performed without uttering a word. Most consumers click on their account to quickly check the balance and then go about their day.

But if there is an issue with the amount that appears on screen, you will most definitely need to speak to somebody. Call routing AI is an essential tool in connecting bankers with their patrons, and the faster the process can be performed, the better for all involved.

When there is a discrepancy between your perceived account balance and the amount showing online, you may panic. The concern will register in your voice, and intelligent call routing will detect your inflection. Emotion AI maps the vocal pattern of a particular caller and connects them with a banker who can best address their problems. This process is called AI-Mediated Conversations and it is a great tool in diagnosing a customer’s demeanor.

For example, if you simply need directions to the nearest branch, AI can process your request effortlessly. GPS can find your location and map the most convenient route, taking traffic and operating hours into consideration. If you are disputing a transaction, however, your needs feel more pressing. Emotion AI can pair you with a supervisor equipped to handle your complaint without making you maneuver a tedious chain of IVR messages and menu options.

According to our AI-Mediated Conversations case study, banks can enjoy a 20% increase in revenue by implementing Emotion AI thoughtfully. The keyword here is thoughtful. AI technology requires proper managerial touch That is why Gartner Research includes AI-Mediated Conversations as a prime example in their report on three essential practices needed for the adoption of Emotion AI.

We have the ability to empathize with consumers.

Banks can harness the humanity of AI and connect with their customer on a deeper level than ever before. The quicker bankers can connect consumers with a problem-solver, the faster that problem will be solved.

Fighting Fraud

Speaking of problems, identity theft is one of the greatest challenges facing the financial sector today. Over 50,000 cases of bank fraud are reported every year. Hackers exploit online systems and prey upon vulnerable banks and their clients.

Don’t be a statistic.

The voice recognition that fuels Emotion AI can also be employed to create a vocal fingerprint. Everyone’s speech patterns and pitch are unique. By identifying yourself through vocal recognition, you can add a compelling layer to your identity protection. And, banks that use AI strategies to combat fraud will endear themselves to potential clients, who have endured the travesty of identity theft in the past.

But fraud detection extends far beyond the sound of your voice. Data analysis can detect aberrations in consumer behavior in both the micro and macro. Banks have always monitored the movement of money to create an early warning against fraudulent behavior. But now, AI can expedite the process and flag an illegal transaction in real-time. Say goodbye to lengthy disputes and hello to a new day in responsive banking.

ROI: Return on Intelligence

Implementing AI isn’t just a forward-thinking way to approach finances; it is a smart way to save money. The banking industry can streamline their operations and salvage over $440 billion by the year 2023 with the help of artificial intelligence technology.

But, automation does not need to be heartless. On the contrary, AI can sound the alarm and stave off a financial crisis before it consumes us. The 2008 economic meltdown took the world by surprise, but AI could foresee another recession well before it strikes.

By assessing non-performing loans (NPLs) and warning bankers before they reach a “point of no return”, AI can mitigate impending doom and secure smart, secure lending practices.

After all, banking is a social contract. We can only borrow money by promising to pay it back on a certain schedule. AI can compile millions of these agreements and study their validity. The lending practices that threaten to collapse the system as a whole are weeded out. The result is a stronger, more viable system for bankers and borrowers alike.

Get to Know Your AI

Education is the great equalizer. Staying ahead of the competition requires not only innovation, but also the capacity to understand the said innovation. Mediated interaction matching (MIM), for example, helps implement AI so that consumers and managers can both benefit from its breakthrough potential.

And on a larger scale, investors must be informed about banking AI technology to familiarize them with the return on investment it can achieve. More confidence yields more investment, creating an upward spiral of rewards.

AI is here to stay. You can bank on it!

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