How AI Is Improving Customer Experience In The Finance Industry?

Finance industry

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Over the last few decades, technology has evolved immensely and people’s interests have moved from television consumers to internet-savvy consumers. Despite the unknown future, digital advancement continues to revamp the world in ways that encourage individuals to form new habits, discover new practices to work together, and become better human beings. Today, be it an established business or a startup, companies are embracing state-of-the-art technologies like cloud computing, artificial intelligence (AI), machine learning (ML), internet of things (IoT), big data, etc. to boost in-house processes and customer experience. Moreover, the concept of using AI to automate and transform business is sweeping the world.

Today, every business is striving to deliver best-in-the-class products and services for satisfying the customers’ demands. For businesses, it is an utmost importance of having customer loyalty and experience as they are strongly interrelated with each other. Similarly, in the financial industry, traditional financial institutions are shifting their strategic focus to the customer experience. In order to improve the customer experience, these companies and institutions need to integrate AI in their system and workflows. By integrating AI technology, companies can unveil new ways to outshine rivals, fulfill customers’ demands, enhance the workflow, and finally, improve overall customer experience.

Let’s see some AI applications in the finance sector that are going to help companies achieve customer experience and their business goals.

Improved security system powered by AI technology

For every customer, security and safety of his or her financial information is a high priority concern. While the existing security system is good, it is not ready for the upcoming obstacles that are rising in the industry. Using the advanced technologies, traditional financial institutions and financial services firms can securely safeguard the customers’ data, which in turn creates a better customer experience. This further can be improved by incorporating AI-powered biometric identification and recognition solutions. These solutions include face recognition, voice recognition, and fingerprint recognition. The facial recognition system can be trained for identifying the actual owner of the bank account by offering facial features from images or videos and then, comparing it to faces available in datasets. Through this system, traditional financial institutions and financial services providers can detect fraud on time and ensure a necessary level of security available for both online services and within offices. Similarly, voice and fingerprint recognition can also be used for identifying the original account holder, which in turn will prevent fraud.

Better decisionmaking using intelligent chatbot as a financial advisor

Before making any financial investment, customers think about the pros and cons of the investment first. Even though, there is a huge amount of information available on the internetstill they need reliable data, which can help them in making the right financial decision. AI-enabled chatbots can act as a catalyst for improving the customers’ decision-making skills. The unique combo of human insights with machine calculations would enhance the customer experience and deliver trustworthy data to customers. Furthermore, these intelligent chatbots can lessen pressure built on financial institutions to reduce their rates of commission on individual investments. These smart chatbots are valuable advisors for customers and in the future, it will help them in improving their financial decision-making skills.

Transformation of lending and loan management

Lending and loan management is a tedious and lengthy process for customers as well as bank staffs. But, AI-based solutions can make this process fast and quick to finish. As a result, these solutions will save time on lending procedures and reduce additional costs. Moreover, the analysis of forms filled by consumers can be automated which in turn, save the time of bank employees. The staffs can only intervene when there is a need for a review of the results. The automated analysis of customers’ data will prevent and lessen fraud detection, credit loss, write-offs, and at the same time, will improve the customer satisfaction rate.

Fighting against cybercriminals with AI-powered solutions and services

While dealing with finance-related risks, it is of utmost importance to protect the financial data from hacking. Just like the technology is evolving, the cybercriminals are also becoming smarter and shrewder. Therefore, to protect customers against financial threats, the finance industry needs to develop and implement revolutionary AI solutions. These AI solutions will use ML and deep learning algorithms, which are based on supervised learning. The supervised learning is a type of model training approach that includes human reviewing of the output.  Hence, the solutions can work with alerts, scrutinize large datasets, or perform analysis of suspect transactions in no time and with high accuracy. It will result in better forecasting decision outcomes, mapping out different ways of development, and helping companies pick the best-suited strategies to mitigate business risks.

The popularity of AI technology is increasing day by day in diverse industries. Organizations are taking progressive steps towards enhancing the customer experience by making financial processes faster & efficient through AI-powered services and solutions. The computational intelligence-based solutions and bots are gradually evolving in the finance sector along with massive investments are being made by the companies who are seeing the potential of AI. Hence, without a speck of doubt, it can be said that AI technology has great potential to transform the finance industry. In the upcoming years, there will be less human intervention in the finance process and customers’ satisfaction will be the top priority of financial companies.

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BusinessApac shares the latest news and events in the business world and produces well-researched articles to help the readers stay informed of the latest trends. The magazine also promotes enterprises that serve their clients with futuristic offerings and acute integrity.

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West has been driving the business world owing to its developed economies. The leading part of the world is straining to sustain its dominance. However, the other parts of the world, especially Asia Pacific region have been displaying escalating growth in terms of business and technological advancements.

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