Artificial Intelligence in Banking

Ananya Verma
Need of AI in Banking

• Enhanced customer experience

• Prediction of future outcomes and trends
• Cognitive process automation
• Realistic interactive interfaces
• Effective decision-making
• Robotic automation of processes
Challenges to use AI in Indian Banking sector

• Availability of the right data, any vulnerability arising from unverified

information is a serious concern for businesses
• In order to effectively reach out to wider population in India, much more
progress is required on NLP (Natural Language Processing) front
• Banks in India will have to build AI systems with GDPR (General Data Protection
Regulation) and similar privacy regulations in mind
• The AI technology is a big threat to redundant employees in the banking sector.
The mass adoption of AI may cause a grave unemployment problem in the
sector.
• Unavailability of people with right data science skills
Applications of AI in Banking

• Front- and middle-office AI applications offer the greatest cost savings

opportunity across banks.
• Banks are leveraging AI on the front end to smooth customer identification and
authentication, mimic live employees through chatbots and voice assistants,
deepen customer relationships, and provide personalized insights and
recommendations.
• AI is also being implemented by banks within middle-office functions to detect
and prevent payments fraud and to improve processes for anti-money
laundering (AML) and know-your-customer (KYC) regulatory checks.
Examples of AI implemented Banking Services
Latest Trends in AI - Banking

• Use of Chatbots - Data analytics to predict future outcomes and

trends
• Wealth management and Portfolio management - Improved
operations, efficient cost management vs. focus on profitability
• Intelligent Character Recognition System
• Risk Management And Fraud Detection