Optimizing Financial & Banking Services with AI-powered Automation
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Softsonix Team
- Dec 07, 2023
- 4 Min Read
Credit - Pexels
Explore how AI is revolutionizing the banking and financial services industry, driving innovation to stay ahead in a progressive and fast-paced environment. Discover the transformative impact of AI and automation on document processing, customer communication, and the overall working methodologies of financial institutions.
In the progressive & fast-paced banking & financial services industry, innovation is considered the key to beating the competition & stay ahead. To meet the growing demands of customers & drive the desired operational excellence, organizations are increasingly embracing the new superpower of artificial intelligence (AI) & automation. From document processing to revolutionizing customer communication, all these new-age and cutting-edge technologies are now reshaping the working methodologies of the banking and financial services industry. Let us see how AI is revolutionizing the banking and financial services industry operations.
Document processing to boost efficiency & accuracy
The financial and banking services industry deals with an extensive array of documents, including structured, semi-structured & unstructured formats. This document-heavy environment often results in error-prone & time-consuming manual processing during the day-to-day operations. However, AI in financial and banking services is changing the entire game to a large extent.
Document Understanding machine learning (ML) models powered by AI introduced in the financial and banking services sector are being deployed to extract data from documents like passports, mortgages and identity proof documents. Organizations can choose and train effective models that cater to the various or specific document types they handle. By automating the extraction procedure, the time taken to address these particular documents can be reduced significantly, leading to some exponential gains in terms of efficiency.
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Unstructured handling of communication to enhance customer service
The rise of virtual chat, email, & SMS as communication channels has brought new challenges for financial institutions. This handles unstructured customer communications very effectively. AI-powered automaton is also leveraged for addressing this particular challenge by thoroughly analyzing & understanding the incoming requests, complaints, & various disputes from customers.
The strategically built ML models interpret these specific unstructured communications, extract the relevant information, & take necessary actions. This particular automation considerably reduces response times, improving customer satisfaction.
In an AI Summit, the delegates shared an example of a consumer bank. The models that they used performed two levels of classification. This categorized emails & understood the intent of every email. Banks could gain enough insights into customer perception & identify the areas of challenges & frustration with banking and financial products. This approach was thoroughly implemented for this particular bank across three categories of products: cards, loans and liabilities.
The relevant field data were also extracted using the right combination of ML and automation models. This enabled the creation of an auto-responsive framework, with 30% of the emails receiving the appropriate contextual responses. The results were impressive, with an accuracy level of around 95% in multi-level classification & a drastic reduction in the overall response time.
By leveraging various effective ML models & investing in the capabilities of Communications Mining, banks and financial institutions of today's time can considerably enhance customer experience & achieve significant returns on investment.
Combining the power of automation & capabilities of next-generation
The appropriate procedure of integrating automation with next-generation capabilities like ChatGPT is likely to open up several new possibilities for the entire banking and financial industry. By combining these technologies, banks and financial organizations can broaden the scope of use cases & deliver more relevant, personalized & impactful solutions.
The OpenAI connector in the present times is enabling several business organizations to leverage the power of AI and automation simultaneously and, in turn, enhance customer experiences. This does so by merging AI-powered automation's strengths and additional Artificial Intelligence from the external ecosystem. This creates a seamless blend of operational efficiency and cutting-edge technology.
Why should banks become AI first?
Over the past decades, banks have perpetually adapted to the latest technological innovations to redefine how customers interact with them. The banks and financial institutions introduced ATMs way back in the 1960s & card-based and electronic payments in the 70s. In the 2000s, we witnessed the increased and widespread adoption of 24/7 online banking, followed by mobile-based convenient banking on the go in the 2010s.
The present age is an AI-empowered digital age facilitated by falling costs for data processing and storage, increasing access & connectivity for every customer & the rapid advances in AI technologies. All these technologies lead to a higher level of automation when deployed after controlling for probable risks. This has considerably improved decision-making by humans in terms of accuracy and speed. The potential for value creation is one of the biggest across industries, as AI can potentially unlock much incremental value for banks and financial institutions.
AI technologies have boosted revenues through enhanced personalization of services to match the expectations of modern-day customers & employees, too. It also results in lower costs through efficiencies generated by higher levels of automation, reduced rate of errors & the optimal utilization of resources. All of these uncover newer & previously unrealized opportunities based on an improved ability to process & generate adequate insights from the available data.
Overall, the disruptive AI technologies of today's time can dramatically improve the ability of the banks to achieve the desired outcomes, at-scale personalization, higher profits, rapid innovation cycles and distinctive experiences in the Omni channel.
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What is next?
As we head towards the future, it is clear that automation powered by AI will perpetually continue to shape the financial services and banking industry, enabling several financial institutions to remain relevant & competitive. This will also help more and more banks and financial institutions to cater to the evolving needs of the customers of today's time and provide them with exceptional services. Embracing these new and developed technologies like AI and ML will be crucial for banking and financial institutions to thrive in the ever-changing & dynamic landscape of financial services and banking.
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