The banking industry is being changed in 2024, and it is not a secret to anybody connected to the domain. Streamline operations, enhanced customer experience, and improved risk management are now the basic expectations of any mobile banking app. And how to achieve those results if you don’t have all the budget in the world?
Artificial intelligence (AI) could be an answer. There are plenty of simple AI solutions that you could integrate into your software and change the way people perceive your app. So, join S-Pro to look at all of this in more detail.
The Double-Edged Sword: AI in Banking
AI offers a multitude of advantages for banks, but nothing in this world can be a silver bullet with no issues. So, here’s a breakdown of both sides of the coin:
| Feature | Description | Consideration |
| Enhanced Customer Experience | AI-powered chatbots provide 24/7 customer support and recommendations. | AI chatbots minimize human engagement in chats and aggravate customers. |
| Streamlined Operations | AI automates repetitive tasks, which allows your employees to focus on more important tasks. | Employees might become concerned with potential replacement. |
| Improved Risk Management | AI algorithms can analyze data in real time to identify suspicious activity. | AI can be biased if trained wrongly. |
| Data-Driven Decision Making | AI enables data-driven decision-making and risk management. | A lack of transparency in complex AI algorithms can raise concerns about accountability. |
| Algorithmic Trading | Complex trades and operations can be executed faster. | AI systems are vulnerable to cyberattacks and it raises safety concerns. |
A Balanced Approach to AI in Banking
To fully harness the potential of AI while mitigating its risks, banks need to adopt a balanced and responsible approach that goes beyond simply acknowledging the pros and cons.
Look at AI as a tool to augment the capabilities of your human workers, but don’t cut corners by replacing real people with algorithms. Focus on leveraging AI to enhance the workflow and streamline the processes, because if you allow automation to take over your product it might spiral out of control.
Overall, if you decide to work with AI, you should do your best to ensure that the data you use to train your AI algorithms is collected and used ethically. Pay special attention to data privacy regulations, especially those unique to your region. Robust cybersecurity measures are essential to protect sensitive data from unauthorized access or manipulation. We recommend you go for overall transparency. Develop AI systems that are transparent and explainable for both your customers and employees. If you’ve something too convoluted in your system, it will repel people rather than attract them.
Conclusion
As a powerful tool, AI can change any industry it touches, including banking as well. However, if your mind turns to adopting it, we highly advise you to first assess the pros and cons of the technology. It is quite expensive to integrate and develop AI solutions, so before you make a sure move, consider why you need it, what it might change for your business, and whether the cons you might face won’t hinder the overall experience.
If you decide to adopt the technology, first try to see whether the automation of those processes will be needed. For that, you might try to pretend that those processes are automated to test the hypotheses; exclude the time you spend on them manually from your day calculation to see how drastic the difference would be.
With all the tips from this article, you can be at the forefront of innovation with AI technology and actually ensure that it does more good than harm to your business. Don’t forget that it is here to make life easier, not the other way around.