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Utilising AI in Banking and Finance to drive efficiency

AI in Banking

AI in finance

AI in Banking – Transforming the way Banks and Financial Institutions Compete in the Global Landscape

The use of AI in banking is growing exponentially year over year, and for good reason. Today’s banks and financial firms are turning to technologies like Conversational AI and other AI powered solutions to increase revenue, improve customer satisfaction and keep their operations running at peak performance.
According to a recent research report, when it comes to the use of AI, 80% of banks are aware of the potential benefits presented by AI and are planning to implement AI solutions to achieve three key goals:

  • Saving on costs in the front office (conversational banking) and improving CX
  • Improving fraud detection and risk management in the mid office
  • Automating manual back-office tasks such as underwriting to improve productivity

AI in Banking – The Financial Rewards on Offer

The use of AI in banking alone represents an aggregate potential cost savings for banks invested in AI applications and programs at an estimated at $447 billion by the end of 2023. This explains why banks are investing heavily in AI technologies like Conversational AI from Global leaders such as Amelia and are now doubling down on finding new ways to incorporate AI into their services.

AI in Banking – Let’s look at some of the AI applications currently making big waves in finance.

AI in Banking – Consumer and Corporate Banking

From 24/7 financial guidance via intelligent digital employees and assistants, to the provision of personalised insights for wealth management, AI is becoming a must have for any banking institution looking to be a top player in the industry.

Leading banks are using AI powered solutions to go beyond automating simple, high volume tasks like identity verification, resetting account passwords, and obtaining account balances, to using AI to anticipate customer needs, alert customers about suspected fraud, notify patrons of price hikes in subscription services, offer additional products and services, and much more. AI in banking, especially the implementation of conversational AI, allows them to Initiate smarter and more nimble workflows and frictionless interactions, enabling them to deliver more personalised services to online customers, streamline onboarding, and boost contact centre productivity.

AI in Banking – Fighting crime with AI

When it comes to the implementation of AI in banking, fighting crime must be at the top of the list. With online payment fraud losses are expected to hit $48 billion a year in 2023 with no end in sight, Banks are using AI to reduce financial crime and protect account holders by detecting fraud patterns and anomalous activities long before they can impact clients.

AI in Banking – Back office Operations

AI in banking, specifically regarding back-office operations, and although subject to significant scrutiny by regulators, has been a huge growth area as more and more banks use AI driven solutions to streamline and automate their regulatory compliance data collection processes and to improve the speed and quality of decision-making by banking personnel.

Mandated to focus on risk management supervision, banks and financial institutions are also deploying AI in credit risk management to predict the probability of a default and improve the accuracy of credit decisions.

AI in Banking – What’s driving banks to implement AI technologies?

AI’s transformative impact on banking has been profound and is revolutionising how banks and other finance sector organisations deliver services to customers.

For example, the introduction of AI in banking apps and customer facing services is already helping to create a more customer-centric and technologically relevant sector. By integrating digital employees into banking apps, banks can ensure they are available to customers around the clock and deliver more personalised recommendations. All the while reducing workloads on other channels.

The use of AI in banking is having a profound impact on the reduction of financial fraud banks and their clients experience. Banks are turning to AI and machine learning to track fraudulent activities, minimise risk and elevate the overall security of online finance. When Danske Bank in Denmark initiated a fraud detection algorithm via their AI platform it was able to increase its fraud detection capability by 50% and automated multiple decision activities, routing more challenging cases to human analysts for further inspection.

Similarly, banks deploying AI can manage cyber threats more easily by continually monitoring their environments so they can respond to potential cyberattacks before these affect employees, customers or internal systems.

Finally, AI is being used in banks to process huge volumes of data so they can track and predict market trends, evaluate market sentiments and suggest investment options. By speeding up decision making, they can boost the productivity of their teams and make trading more convenient for clients.

But these aren’t the only areas that are benefiting from the application of AI.

AI in Banking and Finance – IT Operations, AIOps, and the AI IT Service Desk

In today’s financial services markets, the quality of digital experiences is what separates market leaders from the rest, and AI can play a big role for banks and financial institutions embracing AI as an AI First or Digital First methodology for driving transformation, efficiency and their competitive advantage.

As banking IT environments grow more complex, dynamic, diverse and hybrid in nature and user demands escalate, IT operations teams are struggling to keep up with managing this interconnected landscape. To counter the explosive growth in data, complexity and user demands, banking IT teams will need to adopt an AI for IT operations (AIOps) platform and potentially contract additional managed services to provide service driven autonomous remediation.

Perhaps one of the biggest advantages to AI in banking is the enabling of IT operation teams to solve complex IT problems, including performance, capacity, and configuration issues before they have a negative impact on the business. Today’s AIOps platforms empower IT teams to solve the complex IT operations challenges association with digital transformation.

AIOps uses big data analytics and automation to simplify how IT operations teams support and manage their increasingly complex IT environments as well as satisfy ever-growing user demands. By automating mundane tasks, and providing actionable insights that includes predicting outages, AIOps tools enable today’s digitally powered banks to increase their system performance and uptime. All of which adds up to the greater availability of customer-facing services and a reduction in monitoring tool footprint that can save millions in terms of lowering the cost of maintaining and operating these tools.

AI in Banking – With AIOps in Play, Banks can:

  • Maintain the security, availability and performance of network-enabled transactions
  • Assure services through incident prediction and automated remediation
  • Automate traditionally time-consuming tasks (patching, software updates and rollouts)
  • Significantly reduce incidents and outage times by identifying and solving issues fast
  • Gain end-to-end visibility of their digital infrastructure, including cloud and hybrid environments
  • & Much more

But as Gartner observes, and is true with regards to AI in banking, finance, or any other organisation, implementing AIOps isn’t a walk in the park and identifying the right platform for the business’ needs is just the start. Reaping the potential offered by AIOps depends on having the right know-how and significant preparation of the infrastructure to support an AIOps implementation. If you are considering an AI First methodology for your bank or financial institution, you may need help on your journey, especially if you want to succeed, and do so on an escalated time table.

When it comes to AI many banks and financial institutions want to fast-track how they leverage the full benefits of AIOps and are turning to Managed AI Service specialists like Bell Integration to orchestrate the implementation of AIOps platforms that are fine-tuned exactly to their individual environments, run them, and optimise them ongoing. Organisations that have utilised managed IT services in the past understand the cost savings as well as financial rewards that can be obtained by using a managed service methodology for the handling of their AI programs. In fact, when it comes to AI in banking or finance, both the costs, if not handled properly, or the rewards, if successfully implemented, can be great, and the difference between winning and failing comes down to having the right people, the right data, and the right knowledge in terms of where, when and how. You can tap that experience immediately when you opt for AI Managed Services over in house development.

AI in Banking – The AI IT Service and AI Help Desk

Running a hassle-free IT service desk was a challenge before hybrid and remote working became the new normal. However, changing workplace behaviours and the growing use of end-user collaboration tools means that IT support requirements have significantly escalated.

Resolving user-specific issues fast – and first time – is key for limiting employee downtime and boosting productivity. But with ticket volumes increasing, banking and financial institutions need to find a way to transform their IT help desk with cost and performance optimisation in mind.

In Banking, today’s AI-powered It service desk and help desk solutions can resolve a number of basic day-to-day end-user queries and requests including:

  • Password resets
  • Outlook configuration and trouble shooting
  • Issuing new/replacing lost equipment
  • VPN management and configuration
  • Set up and unlocking accounts
  • Open, close and manage IT support tickets
  • Provide level 1 and 2 automation and support for IT, networks and databases

Enabling financial institutions to accelerate self-service, respond to FAQs and provide intelligence suggestions based on a user’s role 24×7, today’s AI powered chatbots are able to take care of a multitude of tasks. Escalating complex or more challenging scenarios to a live human specialist who is instantly furnished with all the information they need to get up fast when it comes to troubleshooting an end user’s issue.

However, AI services need to be implemented with skill if they are to perform as expected – digital agents can’t function or efficiently orchestrate service resolutions if they haven’t been appropriately and securely initiated.

AI in Banking – Why Bell Integration for Your AIOps and IT Service Desk Implementations

Our cloud-based AI service platforms makes it easy to implement AIOps and an automated digital workforce at speed and at scale.

Powered by Amelia AI and automation, and complemented by our highly skilled support teams, Bell Integration’s AI IT Managed Services give you a fast and streamlined way to incorporate a fully ITIL-aligned IT Help Desk and AIOps framework that frees up your IT personnel to focus on more value-add tasks. With Bell Integration your AI programs will be predictable in that they will have fixed outcomes, fixed costs, and be aligned with your timetables and requirements.

AI in Banking – Lightening the Load with Bell

  • A leading retail bank with more than 15,000 employees has automated the handling of password resets, network connectivity, firewall support and the troubleshooting of business applications. 91% of users rated their experience as ‘good’ or ‘very good’.
  • Our AI managed services generate a 30% cost reduction in service desk costs.
  • Tier 1 support tickets can be answered in under 30 seconds with a digital worker.

AI in Banking – Managed AI Programs can;

  • Automate up to 80% of routine service requests and deliver services 24×7 anywhere in the world
  • Dramatically reduce ticket costs
  • Initiate automated incident process flows with escalations to internal sponsors and third parties
  • Automate system and service monitoring, reporting, governance and traceability

With properly executed AI programs in place, banks can monitor, manage and support Tier 1-4 incidents as well as service requests, configuration and decommissioning services. Giving you everything you need to support your extended environment – cloud, physical and virtual servers, storage and backup, database management, networks, routing, firewall security, wireless and desktop management. What are you waiting for, call Bell Integration today for a free consultation to see just how far we can take you with AI!