“Artificial intelligence is about replacing human decision making with more sophisticated technologies”.
Conversation time with customers is saved
There is the use of artificial intelligence everywhere now. It’s true that banks are now trying to save on the use of human resources by applying chatbots for interaction. The reason is that chatbots are smarter than human beings and have so much data with them, so they don’t take much time to answer questions like them. Instead, it has been estimated, that when banks apply chatbots, they reduce the conversation time of customers by 4 minutes. Hence the queries of customers are resolved quickly which means greater customer satisfaction.
Banks are also using chatbots in their mobile apps. This implies that the chatbots provide automated notifications to banks about their balance whenever customers add money or withdraw. This makes sure customers can cut down on their expenses.
Ease of operations for banks and customers
In India and the US, the banks are using virtual assistants to enable ease of use for customers.
The customers can integrate such virtual assistants with their banking accounts.
Hence, they can order the cash payment by giving instructions to the virtual assistant. Then they can log into the app and authorize the transaction with a touch ID.
The best part about that is for knowing your balance, you don’t need to login into your mobile app. You can simply ask about it from the Virtual assistant and it will ask for your voice PIN. Once that’s confirmed, you will then get the balance on your mobile number registered with the bank. But, make sure that you don’t share the Voice PIN with anyone else. It’s true that by using this technology, customers don’t need to come to the bank branch to inquire about their balances. Although you can send an SMS to the bank’s number to get the balance, it can sometimes take hours to get the intended message on your number because of the unavailability of servers. Virtual assistant manufacturers like Amazon and Google have huge databases stored on their cloud-based servers which have round-the-clock and easier accessibility.
Also, mobile banking can be made faster with the use of such virtual assistants. Mobile banking apps took their own sweet time to conduct transactions because of the internet availability, but the virtual assistants it is not so.
Credit risk evaluation is easy
Banks have a huge responsibility on their shoulders. It is true that they have an enormous number of transactions happening per day. The banks have to maintain huge databases, but sometimes, getting the relevant data through such databases becomes time-consuming especially if there is no sophisticated software. But with the use of virtual assistants like Alexa, when Amazon comes into the picture, fetching such data is easy. Earlier, banks had a few customers, and hence accessing the data through computer software was easy because internet availability didn’t matter. But now, there are so many branches with so many of them trying to access the server at the same time. So, it was easier to check the credit history of a person before giving him/her a loan. But this is not so easy now because banks have so many customers.
Artificial intelligence helps banks in analyzing the data. These apps integrated with mobile banking apps can easily store and retrieve data about customers. Hence, this is useful for customers who get speedy approval for loans from banks. There is also a decrease in costs incurred by banks due to such automated data reporting by 10%.
At least those days, of standing in long queues in banks to meet banking executives and applying for a loan are over. Nowadays, you apply for a loan on a mobile banking app and get a response within minutes whether you are approved or not.
Apart from evaluating the issuance of loans, these AI-based mobile banking apps are also useful to evaluate whether a customer can be issued a credit card or not. In the case of a credit card, the customer is given a monthly credit limit and he can withdraw money. But, he has to repay back the same amount with a certain interest amount. This all sounds possible when a customer has a stable income and can repay back the credit card loan on time. But, when he loses the job and defaults on his credit card, the banks can face major losses. In 2020, when losing jobs became a common trend in the US, credit card defaults started happening more frequently. So, AI-based apps that analyze customer data for banks are a huge help now.