AI Finds New Support in Banks
There's no doubt that artificial intelligence (AI) has set up shop in our society. It shows up in our everyday lives.
The iPhone has its AI assistant Siri. Amazon Echo owners can ask Alexa almost anything. And Alexa can even make phone calls and add things to your calendar!
Retailers like Walmart and Amazon are getting ready to use AI drones to deliver their products.
And Tesla (TSLA) has AI cars that drive without a human!
YouTube and Spotify use AI to track your video and music choices. Then they recommend content to you based on what you like. Social media sites even use AI to record what you look at. And they then decide what to show you.
Now, AI has invaded our banking system. And for the past year or so, the banking system has been researching and investing in AI a lot.
You see, AI can solve problems for banks by saving them money and keeping their customers happy at the same time...
AI Increasing Bank Efficiency and Accuracy
We put our money in the bank because it's "safe." So, the last thing we want is for the banks to mishandle it. And if the bank did mismanage your funds, you'd probably take your money someplace else that you trust.
Banks don't want that to happen. And they're using AI to make their operations better.
Take illegal activities like money laundering and credit card fraud. It takes a while, and quite a bit of money, to look into them.
Banks are able to spot illegal activities much faster with AI technologies. On a road trip to Florida last summer, I used my credit card to get gas. And five minutes after I left a gas station in South Carolina, I got a call about suspected fraud activity on my card.
The bank was able to catch it quickly because of AI.
This saves the bank money and gives its human investigators time for other cases.
Banks are also using AI to change the customer's experience.
Ever since the Great Depression and 2008 financial crisis, our society sees banks differently. They're greedy, mismanage money, and maybe not as safe as we'd thought they were.
So, it'd be in banks' best interest to find solutions to keep their customers confident in their money's safety.
For example, The Royal Bank of Canada (RBC) uses AI technology to assist its customers.
RBC understands that finances are one of the top stresses among Canadians. That's why it started to use AI to make the banking process more efficient and to instill trust in their customers.
RBC uses an AI program called NOMI, pronounced no.mi. NOMI tells you what your balance is and how much money you have to use or transfer. It can even give some financial advice.
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And NOMI notifies RBC customers of any strange transactions and account activity.
Because of NOMI, RBC's mobile banking app use has almost doubled since early 2018.
I'm sure we'll see more of this with other banks soon...
A Win-Win Situation
AI has helped banks save time and money. It's also helped banks keep its customers.
In turn, bank customers benefit. Whenever you call your bank, AI technologies can bring up your account through your telephone number.
This increases customer experience and appreciation.
It's safe to say AI has carved a beautiful niche in our society and likely won't be going anywhere.
Banks are adopting AI and exploring its future uses. So, it's only a matter of time before it revolutionizes our banking.
John Butler Jr.
Contributing Editor, Park Avenue Digest