AI in Digital Banking: 5 Applications

So, what are AI’s applications in digital banking? Let’s look at several examples, though we need to underline that this is just a part of artificial intelligence’s full capabilities.

Intelligent UI

First and foremost, we need to mention the intelligent user interface – a function that enables a higher level of personalization than ever. How does it work?

An artificial intelligence engine tracks and analyzes the behavior of the user within an app. Let’s say the customer conducts regular international transactions at certain hours. The AI recognizes that and, hence, puts adequate functions at the forefront of the app in the periods when the user is most likely to make such transactions. As a result, your customer may navigate through the app more conveniently, which in turn builds their satisfaction.

AI Chatbots and Assistants

Virtual assistants in banking (along with AI chatbots) are another use case of artificial intelligence worth looking into. In general, they are used to improve customer experience. However, they don’t aim at a singular element of the customer journey but rather approach several of them. How do they help banks build client relationships and satisfaction?

• 24/7 support – Firstly, AI chatbots can solve really simple tickets without human input. Therefore, they might be implemented to provide your clients with live support at all times, including nights and weekends.
• Faster response – A virtual assistant can help your customer service team operate more quickly. For instance, LiveBank assistant provides your agents with responses supported by sources from your internal regulations, cutting down the time your employees spend on searching for information manually.
• Message personalization – Virtual assistants and chatbots can tailor the style of the message to the one used by the customer, hence creating a better experience.
• Customized offers – Artificial intelligence might also be used to generate personalized product offers for the customers, improving not only the experience, but also sales.
• Omnichannel support – What is more, AI virtual assistants can provide insights into all previous customer interactions, including those in other channels, and prepare responses based on them. As a result, your agents will be able to provide the most accurate support.
• Reduced need for physical branches – With AI in banking customer support and all the above benefits, you will encourage more customers to switch to digital channels. As a result, you won’t need to have so many physical branches, which will significantly reduce your institution’s operating costs.

Transaction Categorization

As a bank, you need to know who your customers are – not only for authentication and fraud prevention but also to offer the best services and products to them. AI can help with that.

Many digital banking solutions use AI to label transactions and categorize customers based on them. These solutions are much more accurate than traditional methods of conducting this process.

Fraud Prevention

While the above AI-based apps were helpful mostly for customer service in banking, other applications touch different areas of banking. For instance, there are artificial intelligence models designed for fraud detection and prevention.

It’s all simple: you feed the system with cleaned historical data, and it analyzes the transactions for you, flagging any that have indicators of potential fraud. This is more accurate than working with human specialists (though you still need them to verify AI’s findings!), letting you ensure that you’re compliant with the regulations.

Compliance Monitoring

You might also feed an AI app with all the regulations in banking and use it to detect potential regulation violations. As a result, you will ensure that every transaction is compliant, avoiding high fees.

Conclusions

AI apps are used commonly in banking, though not every institution harvests the benefits of the whole potential of artificial intelligence. If you want to become a pioneer in this area, be sure to check out our LiveBank platform – a cutting-edge solution for banks that will take your customer service to the next level.

You might also read: Automated Processes, Human Touch: Striking the Balance in AI-Powered Customer Service