ROLE OF ARTIFICIAL INTELLIGENCE AND ANALYTICS IN BANKING

AI and Data Analytics have evolved with the surge of the digital revolution, due to which there has been huge growth in the dynamics of how these are used today in banking.

- Rajeev Shankar

Analytics can be used for expanding the client base and for optimizing the costs. Adoption of Artificial Intelligence (Al) and Analytics has transformed every aspect of the banking process. These have helped in making banking procedures faster, transfer transactions safer and back-end functions more efficient. Al and Analytics in banking are ready to transform how organizations manage their revenue, converse with clients, and scale their investments.

Artificial Intelligence in Banking

Strong and speedy process, advent of mobile technology, data accessibility, and spread of open-source software offer Al a huge opportunity in the banking sector. The business value for the world market for Al in the banking industry is predicted to increase by manifold in the coming years. It will increase from $50 Billion in 2018 to $300 billion in 2030 (Source: IHS Markit).

Al technologies can significantly enhance banks' ability to attain the following key outcomes:

1. Personalization of services - On account of arrival of new age digital tools such as Customer Data Platforms (CDPs), it has become easy to aggregate data from various sources in one central location. CDPs help banks in achieving a single customer view, which means that a customer's details such as transactional data, behavioural data, etc. are all made available in one place. Once the bank is able to fully understand a customer, giving what he is looking for, the next course of action is to offer personalised products and services.

2. Significant profits - Al will boost staff productivity by empowering them to delegate low value-added tasks to Al and be more productive in their core tasks. This will help in increasing profit of the bank.