Applications & Benefits of AI in Banking

AI is a technology that has impacted every industry vertical including the banking and finance sector. AI in banking reduces expenses by boosting productivity and making the decision process fast, and accurate. According to a report by Business Insider, almost 80%of banks are aware of the potential benefits of AI in the banking sector. It also says that by 2023, banks are estimated to save roughly $447 billion by deploying AI applications. The applications of AI in banking are many and so does the benefits of AI in banking. Let’s take a look at some of them.

Applications of AI in Banking and Finance

Initially, AI was majorly used for increasing operational efficiency. This has changed post-pandemic where AI is used for automating processes and deriving insights. Here are the 8 major applications of AI in banking.

Cybersecurity & Fraud Detection

AI along with machine learning is capable of easily identifying fraudulent activities and alerting customers and banks. In 2019, the financial sector was the most targeted industry for cyberattacks accounting for 29% of the total. AI can be a game-changer in the finance sector to stop cyberattacks.

AI Chatbots

By combining chatbots with banking apps, the banks will be available for the customers round the clock 24*7. Chatbots’ capability to comprehend customer behavior helps in offering personalized customer support and recommending the right financial services and products accordingly.

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