Artificial Intelligence (AI) in Banking and Payments
Arthur Bedel ?? ??
Global Payments Leader | Co-Founder of Connecting the dots in Payments... | FinTech Advisor | Ex-Pro Tennis Player
Artificial Intelligence (AI) is revolutionizing Banking and Payments, driving revenue, enhancing fraud detection, slashing costs & more??
What is Artificial Intelligence (AI):
Artificial Intelligence (AI) is a field within computer science that focuses on creating systems capable of performing tasks that typically require human intelligence. This includes subfields:
?? Machine Learning (ML)
?? Deep Learning (DL)
?? Generative AI (GenAI)
There are a multitude of different application fields for AI leveraging the subfields above:
??Natural Language Processing (NLP)
??Robotics
??Computer vision
AI can be categorized into Narrow AI, which targets specific tasks, and General AI, which aims for broader, human-like cognitive abilities. Currently, Narrow AI is more prevalent and applied in various industries, including banking and payments.
How AI is Impacting Payments & Banking ??
AI is revolutionizing the banking and payments industry by enhancing customer engagement, improving operational efficiency, and advancing risk management:
?? Customer Engagement — AI-driven personalized solutions and customer support enhance customer satisfaction and loyalty.
?? Operational Efficiency — AI automates routine tasks, reduces errors, and streamlines processes, leading to significant cost savings.
?? Risk Management — AI provides sophisticated tools for real-time risk detection, compliance, and fraud prevention.
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Diving deeper, AI has some very specific and concrete applications in the industry:
?? Enhancement of customer support efficiency
?? Predictive capabilities of AI in forecasting consumer finance credit defaults
?? Automation of annual report generation utilizing AI technologies
?? Improvement of organizational data management speed and reliability with AI integration
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Current Opportunities and Potential for Disruption ??
1?? Revenue Growth and Cost Reduction — AI adoption in banking could lead to a 30% increase in revenue and a 25% decrease in costs
2?? Practical Use Cases:
?? Enhancing Customer Support — AI-powered virtual assistants manage 70-80% of incoming calls.
?? Loan Default Prediction — Machine learning models predict loan defaults by analyzing diverse data sources, reducing credit risk.
?? Streamlining Report Generation — Gen AI automates the creation of financial reports.
?? Advanced Data Management — AI enhances data extraction and processing, improving the reliability and usability of data.
3?? Organizational Transformation — A systematic approach is crucial to the implementation of an AI strategy.
By embracing AI, Banks and FinTech companies can not only streamline their operations and reduce costs but also create more personalized and efficient services for their customers. This is a competitive advantage ??
Source: Arkwright Consulting
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Senior Advisor | Digital Identity, Payments, Election Systems
5 个月I miss human contact these call centers manned by AI are so uncomfortable to those of us who remember when humans you could feel we're smiling. Then I fear the criminal with AI at their fingertips capablebof outwitting their AI cousins.
The self proclaimed, most influential person in payments. Except for Jack Dorsey or those two bros from that other company & definitely not Satoshi Nakamoto, but after all those guys it's me.
5 个月AI enriches banking. Adopting AI fortifies financial services with personalized, cost-effective operations. A win-win situation.
Digital Transformation Consultant @ Hafz | Digital Solutions Architect | Fintech | AI | IoT | Big Data | Data Analytics | Pioneering Fintech Solutions to Revolutionize Traditional Business Models
5 个月Embracing AI in banking and payments is the way forward. ?? #Innovation