Discover how DHL Group increased connectivity across the enterprise and automated multiple processes end-to-end
Technology has shaken up the banking industry more than once and many tech savvy banks are already leveraging AI to further modernize operations. According to McKinsey, the productivity gains from the use of generative AI could add up to $340 billion in value annually across the banking industry.
Greater efficiency
AI-powered automation reduces the number of tasks within processes that require human intervention and speed up execution, increasing operational efficiency.
Faster, better informed decision making
AI can quickly analyze large volumes of data and surface actionable insights to help speed up decisions, boosting productivity.
Increased customer satisfaction
Personalized communications and faster response times increase customer satisfaction, leading to more upselling and cross-selling opportunities and greater customer loyalty.
Better risk management
Continuous risk monitoring enabled by AI provides banks with real-time market data. This allows analysts to identify potential risks and create strategies on how to mitigate them before they have an impact. The role of Gen AI here is to efficiently extract data from various sources, which can then be analyzed to assess risk.
A report by KPMG in the US, found that 76 percent of executives plan to use generative AI in fraud and prevention, 62 percent in customer service and personalization and 68 percent in compliance and risk. Here are some ways generative AI can be used across these areas:
AI in compliance
AI can help banks stay compliant by:
Continuously analyzing transactions, customer data, and communications for compliance with regulatory standards (e.g. anti-money laundering (AML) and Know Your Customer (KYC) and flagging potential violations in real time.
Processing relevant data and generating compliance reports to demonstrate adherence to regulations.
AI in fraud detection
AI can help banks detect and mitigate fraud by:
Tracking transactions and flagging any suspicious activity such as unusual spending or access from an unauthorised device and taking action such as notifying the customer or freezing the account to prevent losses.
Enforcing additional verification steps such as biometric scans and two-factor authentication for high-risk transactions such as those made in another country or for a larger amount than is usual for the account.
Collecting and analyzing vast amounts of data from multiple sources to update systems on the latest fraud schemes.
AI in lending
Banks can use AI to:
Analyze applicant’s bank statements, spending habits, and income as well as credit history and risk profile to make more informed lending decisions and reduce the risk of defaults.
Scan and extract information from documents submitted by applicants and cross-check this with external databases to provide validation in real-time, speeding up approvals.
Enable loan managers to ask natural language questions about loans in the portfolio, identifying any that are high risk or may require action.
AI in customer service
Generative AI can enhance customer service through:
Chatbots that can process customer queries in natural language and provide 24/7 support.
Analyzing customer complaints, detecting sentiment and creating suggested responses for agents to speed up case resolution.
Analyzing customers’ financial history, preferences, and behaviors to personalize product recommendations.
Generating customer communications such as emails, which a human can simply check and send, accelerating response times.
AI for document and meeting summaries
The inherent complexity of banking means that it's common for business operations and customer service to include lengthy documents and meetings. AI can be used to:
Extract key insights from lengthy documents such as financial statements, reports, proposals, filings and contracts.
Capture key points, action items, and decisions from meetings to ensure the efficient sharing of information, effective client service, or in the case of internal meetings, that stakeholders are aligned on key initiatives.
Bizagi’s low-code platform enables you to combine automation and AI to boost business productivity and deliver higher ROI. Our AI assistant Ada can provide users with answers to enquiries based on natural language questions and generate graphical views of business data for simpler analysis. Our AI Agents can create communications, summarize documents, obfuscate data and more to make the jobs of your teams easier.
