This is a user generated content for MyStory, a YourStory initiative to enable its community to contribute and have their voices heard. The views and writings here reflect that of the author and not of YourStory.
Mobile Banking AI apps have the capabilities to revolutionize finance industry
This is a user generated content for MyStory, a YourStory initiative to enable its community to contribute and have their voices heard. The views and writings here reflect that of the author and not of YourStory.
When you look at artificial intelligence, specifically in the banking sector, it doesn’t appear to be a novel concept. It has been decades when machines took up the tasks of humans in their hands for getting things automated. Due to the availability of rapid processing speeds, cloud computing, open-source software, and data availability, there has been a tremendous surge in the banking AI industry. This has resulted in financial institutions leveraging the technical abilities to new heights, with contextual mobile services relevancy increasing.
Artificial Intelligence
Every new week now on sees a breakthrough in technology, especially when AI used for completing tasks. Right from Amazon Alexa to Siri, there is a digital personal assistant helping you out possibly with day to day tasks, as well as personalization on the high setting consumer expectations. AI has a lot many uses varying between industries just as weaker AI to algorithms that are much more complex with algorithms which are deep learning, and machines functioning just like a human brain.
Strong AI is something that is very much far from near, and we have the abilities advance with every passing week. In fact, by 2018, you will have artificial intelligence technologies used by more than 60% of organizations worldwide. So, what is meant by artificial intelligence? When related technologies cover the likes of expert systems, machine learning, and natural language processing, it all combines to form artificial intelligence.
These are the functionalities that comprehend, and human brain helps in letting them behave in a similar manner, wherein companies look at enhancing overall customer experience.
Mobile app market is all about getting connected with AI
Majority of banks are in early stages of adopting AI related technologies. As per a survey conducted by National Business Research Institute, and Narrative Science, 32% financial institutions have artificial intelligence used currently with the likes of voice recognition, recommendation engines, and predictive analysis. Moreover, The Royal Bank of Canada quite recently had Siri added to their app. This also tells how traditional banks are making it more imperative to use AI technologies for improving an overall customer experience, by remaining in constant relevance with the market.
Banking industry getting personalized
When looking at 85 million of the millennials, 67% of them rely heavily on mobile banking, while checking the phone 45 times in a day. Apps equipped with an AI that is conversational in nature, are bound to meet personal, predictive, and contextual services for ultimately meeting the user expectations. As an example, let us consider an organization Varo Money who is already on its way to redefining as well as inventing what can mobile banking possibly do, encompassing financial experienced into daily lives of users. It has got into place an intelligent app for mobile banking, improving the financial condition of consumers by tracking through borrowing habits, savings, and spendings, leading to personalized recommendations and insights.
4 ways in which AI can revolutionize mobile banking
Customer Support is probably the topmost benefit one can have by introducing automated AI customer service representatives or bots ready to solve a problem. It is all about getting data from all the mobile devices, and then processing the same through machine learning by users on the back end providing information or probably redirecting to the right place for accessing information. In this way you can have the pain eliminated of not directly communicating with a customer service representative. This way concerns can be dealt with in real time.
Advising is something wherein based on user information, there are right services, offers, or advices served, by means of detailed insights. Robo advisors can be the ones helping you with advice and communication related to AI, and which include algorithm based portfolio management, and online wealth management, backed by a human representative.
Personalized planning is something wherein chatbots are used for providing personalized advices, with AI helping customers to plan for future events. Such mobile banking apps help AI strategies to work wonders in later part of lives. As an example, when planning for a house purchase, the app can have a budget generated based on future expenses.
Automation is the biggest advantage wherein transactions process on their own, arranged as per the due date they held, in turn removing the manual entries tedious task elimination.
Personalized Reminders is the best way to stay within the budget limits especially when planning to keep things under control. Reminders help with upcoming expenses or bill payment reminders, allowing people to remain within budget. Moven is one such company helping users to keep a constant track of savings and spending through recommendations in the form of linked credit card / debit card, within the Mobile app. Such innovative thinking helps banks a great deal in keeping things at bay by offering a one of a kind experience.
The future associated by tackling barriers
Fraud detection was one of the earliest uses of AI, but now fraud detection has found its roots in lot of things. Today, it is not just monitoring, but also responding back to the potential threats related with frauds. AI is seeing a major shift by moving more towards the personalization thing. This is just because machine learning has been used for evaluating millions of data via the means of transactions. There do are some barriers associated:
1.) Almost 50% banks have biggest challenge in the form of legacy systems, which is a big hurdle.
2.) 44% of people do lack a unified vision for such kind of mobile banking AI apps.
3.) 38% people show a shortage of both experience and skills.
Although there are a lot other barriers, but with technologies gaining good enough momentum, there is an inevitable potential of industry getting revolutionized in many ways.
Summing things
AI does stand an unimaginable potential of turning the entire mobile banking AI app industry up and down, resulting in a refined experience for users. They are in full control of understanding user behavior, with financial institutions the front runners in the race. With AI taking so many advancements ahead, it is amazing to see kind of mobile banking benefits in banking industry.