In more simple terms, AI technology is bringing modern advances to various industries, with the banking and finance sector being the newest adoption. As reported by CNBC, both large and small banks are considering integrating AI into their operations to enhance customer interaction.
Local Banks to Adopt AI
According to CNBC’s report, the pandemic accelerated changes in the banking sector, specifically for large institutions. Moreover, artificial intelligence (AI) is not just disrupting traditional industries such as those on Wall Street but banks as well.
Experts and business leaders believe that smaller, standalone branches will thrive due to their adaptability and minimal scale. Instead of lengthy queues and old-fashioned teller windows, these neighborhood banks will transform into advanced financial service centers powered by artificial intelligence (AI). By doing so, they’ll surpass larger banks in the services AI enables them to provide for customers.
AI To Modernize Banking
Due to their enhanced capability to process large amounts of data faster and more accurately than humans, AI systems in banks are becoming valuable assets in reducing expenses. Additionally, sophisticated algorithms allow for the swift detection of potential fraudulent information.
Based on various reports, it’s estimated that around 80% of banks have recognized the potential benefits of using artificial intelligence in banking, as suggested by Business Insider. Meanwhile, according to a McKinsey study, the application of artificial intelligence in banking and finance could potentially generate up to $1 trillion in value.
The graphs illustrate the rapid adoption of AI by the banking and finance sector to enhance productivity, reduce expenses, and improve both offerings and operational efficiencies.
Local Banks to Improve Customer Interaction With AI
For smaller banks, interacting with customers might be the primary application of AI technology. By doing so, it allows bank staff to focus on more complex tasks as routine inquiries are handled automatically.
With less cash circulation and branches transforming into automated machines, enhanced security measures will be implemented at these locations. Advanced technologies such as AI, extensive camera surveillance, biometric access control, and the abandonment of PIN codes will significantly bolster security at these branches, offering additional protection in times of need.
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2024-04-13 20:41