Everyone’s talking about Artificial Intelligence. What was once exclusively the realm of science fiction is now all too real — especially those with visions of a dystopian future.
But ethical implications and robot overlords aside, AI is already transforming the way we bank, in ways that are great for banks, but even better for their customers. Every hot FinTech out their is scrambling to build solutions with machine learning integrated, because that’s what they think banks want to hear.
Now, banks are a little more cautious than tech companies (and with good reason). They’re not going to hand over the keys to their data to just any intelligent software. But that doesn’t mean they’re averse to innovation — they just want to make sure their compliance ducks are in a row.
The point is this — for FinTechs willing to develop bank-approved technology, there is a massive opportunity to change the way we bank. Here are 3 ways AI will transform banking:
Tailor-made Financial Advice
You might be oldschool and rely on the advice of an actual real-life human being. If it’s someone with a good head on their shoulders with your financial well-being in mind, there’s nothing wrong with that. But what if you had access to a technology invented and streamlined to be as good with your money as humanly — or should I say, robotically — possible?
Robo advisers are already becoming a staple in financial institutions. By automatically comparing a customer’s data with the products offered by the bank, they are able to recommend perfect fits that maximize growth within the customer’s risk tolerance.
This is an example of not “how will AI transform banking” and more about how it already is.
Predictive Relationship Analytics
We’ve written about this before (not in small part because it’s something Zafin can already do for banks), but as the rush for AI implementation speeds up, it’s becoming more and more relevant.
In essence, banks that implement relationship analytics AI will be able to offer you products and services you need before you even know you need them. Not only that, but there will be no more waiting while banks put the paperwork in order. Everything that needs to be arranged for your purchase of, say, a car loan, can be done in advance of you ever approaching a bank employee.
This is as good for banks as it is for their customers. These predictions will be tailor-made for the individual, and done at great speed for low cost. It’s a win-win.
Fraud Detection and Prevention
For banks, one of the very best things AI can do for them is detect and prevent fraud. By using neural networks and machine learning, this technology is far more attune to fraud-like behaviour than any conventional system. Ths not only requires less human oversight (saving time) it also means it happens more accurately, preventing fraudsters from profiting during a delay.
And it’s not just about fraud detection either. AI systems can take immediate action against fraud, and shut it down before damage can be done. In essence, it’s just a faster, better and more cost-effective solution to a real banking problem.
Systems using machine learning and neural networks are already in play. But as fraudsters learn to adapt, even better AI technology is needed. And thankfully, it’s already on its way.
At Zafin, we’ve always got our eyes on the future of banking technology, and artificial intelligence is undoubtedly a part of that. It’s already a part of our core solution, and is constantly improving with our hackathons.
Want to learn more about our cutting edge FinTech? Don’t hesitate — get in touch today!
Zafin (@zafin) is a leading financial technology provider that enables banks to form richer, more personalized client relationships. Built from the ground up for financial services, its platform empowers banks to enhance revenue and operational efficiency. Founded in 2002, Zafin sits among North America’s top FinTech companies, and is trusted by retail and corporate units at some of the largest banks worldwide. Headquartered in Toronto with global offices, Zafin has a proven track record with a 100 percent client retention rate as validation.
Cam is the Digital Communications and Marketing Coordinator at Zafin. With a background in journalism and a passion for blogging, Cam strives to tell compelling digital stories. At Zafin he will share the latest trends and news in the FinTech world, and share Zafin’s role as leader in the industry.