Artificial Intelligence a new way to banking sector

Posted By :Vikas Verma |31st August 2020

The Indian banking industry is facing major disruption and change. Obviously, investment in new technologies and commitment to basic innovation has never been more. At the same time, India's central government has set itself on the path to success an amazing digital population of Indians everywhere including the provision of social services,
transfers, and transactions, as well as legal banking. Banking could make use of AI applications across multiple business areas. A system based on AI for the detection of fraud and other miscellaneous activity is among the most widely discussed for AI applications in the banking sector, and it seems to work for credit cards similarly to how it works for the bank sector. Additionally, credit card companies and bank institutions could use AI software to improve customer-based services and develop customer-targeted marketing campaigns using this technology.

 

 

Risk Assessment: AI is best in class to learn from previous data. Certainly then, AI can prove beneficial for the finance domain. In the sector of banking, previous or can say historical data preserve a great value to predicts the current and the future trends. Let’s take the example of credit cards. Banks all depends upon the on credit scores to take decision either applicant is eligible for a credit card or not. Wouldn’t it make more sense if data about the individual’s loan repayment habits, the number of loans currently active, the number of credit cards, etc. can be further be utilised to customise the rate of interest over the card for the bank sector that is offering the card? Now, take a minute and think back which system can scan through loads of previous financial data and come up with a solution- Artificial Intelligence!

Since AI is completely scanning records and data-driven through the records of individuals also gives the ability to make a offers on loan and credit limit offerings by utilising Credit risk analytics reports. Many banking sector are implementing AI and ML (Machine learning) algo based system in place of human analysts, potentially saving millions of currency is losing due to human error. Much like the human of the brain, a machine learning algorithm is also self-improves as it is fed as more as the quality of data, a trend that the bank sector can benefit from immensely. 

 

 
Fraud Detection with Machine Learning: it identifies events that do not happen on regular bases. When an event does not generally occur for a credit card user it raises a flag and it primarily blocks a user card from being used further and must call the card company and have a verification process to further go on. Fraud detection systems effectively stop fraudsters in their tracks bypassing each transaction through the actual card holder’s user profile. One of the very simplest solution in a very complex modern and digital society. This process can only be achieved by having artificial intelligence and machine learning along with big data into your bank sector's machine.

 

 

Conclusion: Artificial intelligence is the future of banking (the importance of AI technology through industry) because it brings the power of sophisticated data analytics to deal with fraudulent transactions and improve compliance. The AI algorithm can detect anti-moneylending type activities in a just few seconds. If not, it can take a couple of days or maybe more then a month

AI provides a gateway to banks to manage record level high-speed data to get valuable insights from it. Features such as AI bots, digital payment advisors, and biometric fraud detection systems can be lead to a high quality of services for a wider customer base and risk-free. This technology will increase revenues, reduce costs, manpower, and increase profits with fewer chances of errors.


About Author

Vikas Verma

He is frontend developer. He is a learner by heart and has a passion and profile to adapt various technologies.

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