The application of artificial intelligence in financial services offers a number of opportunities to improve efficiency, accuracy, enhance customer service, and increase automation. With a wide variety of applications, AI can be deployed in each business unit in a way that creates continuity and synergy for a company and its data.
13 AI Applications for Financial Services:
- Email classification
- Content summarization
- Smart FAQs
- Virtual Assistant
- Search Engine
- Up & Cross Selling
- Personal Assistant
- Business Intelligence
- Know your customer (KYC)
- Anti Money Laundering
Email classification: Incoming emails, support tickets, chat conversations and any piece of text can all be automatically and immediately categorized and funneled to a team of experts or trigger an action. This frees up human resources to focus on complex tasks, such as analyzing high-risk customer requests, while also reducing the response time.
Content summarization: Financial analysts have to review a large amount of market reports and news every day. Text summarization systems, tailored to financial documents, like earning reports and financial news, help analysts to quickly detect and understand market indicators.
Smart FAQs: Instead of simply offering a list of recurring Q&A on the company’s website for customers to either scour through or completely ignore, customers can interactively ask questions and receive immediate detailed answers for their specific questions – all without any human resources being expended.
Voice-to-text: Recorded phone calls between customers and service representatives can be easily and quickly converted into text with AI. This text can be properly classified, automatically summarized, and saved in a database for further analysis of customer sentiment.
Virtual Assistant: Customer service representatives can be supported by a virtual assistant that instantly suggests the right answer to customer questions, based on previous cases. A virtual assistant can also be leveraged as a training and monitoring tool to evaluate agent performance.
Search Engine: An internal search engine can handle enterprise queries from employees by locating relevant information.
Up & Cross Selling: By leveraging insights into card utilization and customer transactions, AI can suggest personalized offerings to boost customer engagement.
Personal Assistant: A personal assistant for customers can offer potential saving opportunities, understand spending patterns, provide alerts on suspicious activity, and optimize day-to-day finances.
Business Intelligence: Bankers’ work can be prioritized according to the most promising business opportunities offered tocustomers during a specific timeframe.
Know your customer (KYC): ID and document verification, along with face recognition, are key areas in which AI can help banks as part of the onboarding and verification processes. Banks can easily and quickly authenticate customer documents and perform liveness checks to detect fraud and spoof attempts. This helps to improve and drastically shorten the onboarding process of new customers and the verification processes of existing customers.
Anti Money Laundering (AML):Through monitoring customer transactions and segmenting them accordingly, AI is able to analyze and quickly identify suspicious activity and explain the reasoning for flagging possible suspicious behavior. AI can dramatically reduce false-positive results and decrease millions in operating costs.
Underwriting: Requiring a significant amount of resources, underwriting has enormous potential to benefit from AI deployment. By leveraging large amounts of applicant data, AI can quickly process a large amount of data provided by the customer, determine an applicant’s risk level, and make recommendations on how to proceed. This can reduce the approval process down from 10-15 days to less than 2 days.
Collections: AI can not only improve the accuracy of the risk assessment, but it can also help enhance customer service and increase the likelihood of payment. This is achieved by recommending best times and channels to increase the success rate of reaching customers.
While each of these applications of artificial intelligence in financial services on their own may seem to have relatively small impacts on the business of banking, when deployed together in a holistic manner they create a revolution. Banks that begin taking the first step into turning their businesses into AI-transformed companies will have a significant competitive edge.
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