Artificial Intelligence Contribution to the Growth of Banking Sector

Do you know about the term "Artificial Intelligence"? I think there is not any single person who doesn’t know about artificial intelligence. It is the part of computer science and it deals with the development of smart machines. These machines are worked according to human demand and this term is also known as machine intelligence. In the technical terms, to completing tasks, AI uses the multi-approach interdisciplinary science. Due to the rapid increase in technology, we can easily see the effects.

Some Interesting Facts about Artificial Intelligence (AI): Did you know that all of us make the use of Artificial Intelligence in our daily lives? According to a survey, 4.39 billion people all around the world make the use of the internet. Following are some of the points that will make you clear how we interact with Artificial Intelligence in our routine lives: As we mentioned above, approximately 4.39 billion people use the internet. Google also makes the use of AI (algorithms like Rankbrain) to provide its users with the most accurate search results.

Automated marketing emails also uses AI to analyze the emails which they need to send based on how you've communicated with a business website.

Numerous online advertisements use AI to put a filter over a particular ad so that only their targeted group of audience can see that specific ad.

Chatbots run over AI. Nowadays, numerous healthy brands use chatbots to assist their mass customers instantly and efficiently.

Nowadays, smartphones and smart speakers are facilitated with the advanced voice search feature. This feature helps the users to discover the best results for their keywords. If you are an Apple user, then you will know that Siri also runs over the same principle of AI.

How Does AI Work: If we talk about the functionality of Artificial Intelligence, it uses machine learning to perform activities that require human intelligence. The processor has to determine how to respond to specific actions. For this, it makes the use of algorithms and historical data to generate a propensity model. After this, the propensity model begins making predictions.

AI works by using a massive amount of data with fast, iterative processing, and intelligent algorithms. Moreover, it allows the system software to learn automatically from patterns or features available in the data. AI is a combination of theories, methods, and technologies.

Subfields of Artificial Intelligence (AI): Some of the essential subfields of Artificial intelligence are listed below:

Machine Learning: First of all, Machine Learning, it automates analytical model building. It makes the use of techniques from neural networks, statistics, operations research, and physics to detect dark/hidden data penetrations without being programmed for where to search and where to conclude.

Neural Network: A neural network is a kind of machine learning, build from interconnected units. It prepares information by acknowledging external inputs, disseminating data between each group. This process demands multiple data passes to find connections and derive meaning from undefined details.

Deep Learning: Deep learning utilizes massive neural networks along with multi-layer processing units and training techniques to learn intricate patterns in large amounts of data.

Cognitive Computing: It is a subfield of AI that enables machines with natural and human-like interaction features. The primary purpose of Cognitive computing is to empower the machines with the ability to interpret images and speech so that computers can respond coherently.

Natural language processing (NLP): The ability to examine, recognize, and produce human language, including speech, comes under Natural language processing (NLP). Natural Language Interaction, it is the next stage of NLP, it allows humans to communicate with computing machines.

Artificial Intelligence in Banking Industry: In the year 2017, approximately 32% of the financial services have started making the use of AI technologies such as Predictive Analytics and Voice Recognition. According to the Business Research Institute, this number will jump to 71% by the end of 2021. In laymen terms, Artificial Intelligence is the future of the banking industry, as it provides an advance approach to deal with fraudulent transactions.

By seeing the fraudulent transactions concerning headlines, we can say that there is a backbreaking need for Artificial Intelligence in banking sector.

Artificial Intelligence not only provides security to the banking sector but also improve the customer satisfaction score. In simple words, Artificial Intelligence is a perfect call to meet the diverse needs of customers concerning the banking sector.

Advantages of Artificial Intelligence in Banking Sector: Customer Satisfaction: Customer satisfaction is one of the most important factors when it comes to the banking sector. The bank authorities need to provide personalized and effective services to all the customers individually. Now the question arises - How Artificial Intelligence can contribute to the banking sector? Well, AI can help the banking sector in terms of revenue, faster decision making, and a healthy customer relationship.

Chatbot: A chatbot is an automated chat program, either it runs over automatically or follows a pre-determined path. If we talk about the advantages of chatbots, it helps in delivering accurate and to the point information to the customers in the least time possible. Also, it provides 24/7 customers support to the customers so that customers can chat with the chatbot anytime according to their suitable timings.

Fraud Detection: Banking related frauds are one of the most dreadful issues among the customers and banks as well.

Whenever a banking fraud takes place, it is very much difficult for the customers to deal with and overcome from that fraud. Now the question that can strike in your mind - How Artificial Intelligence can help the banks? Suppose, if a bank gets immediate notification whenever a fraud or such kind of activity happens, then the bank can take immediate action against it, agreed? So, we can say that Artificial Intelligence can detect and minimize banking fraud.

Conclusion: Artificial Intelligence is a panacea for the whole banking sector. It not only improves the customer assistance but also strengthens security concerns. Along with the benefits mentioned, the banking

sector can also utilize the applications of AI, such as Personalized Financial Guidance, Digital Wallets, and Interactive voice response systems. All these AI applications support digitalization and are rich in terms of security and comfort.