One of the most exciting trends for the financial industry in the coming years will be an ongoing movement toward AI-driven predictive banking.
The banking industry can unify its internal and external data with this technology. It gives providers of any size the opportunity to create predictive profiles of customers. This real-time approach lets each firm know what their consumers want, offer meaningful advice, and build wealth dynamically.
Artificial intelligence can improve security at the same time it intensifies the customer experience. Instead of being in a reactive role to what people perceive their needs are, predictive banking allows institutions to become proactive in the lives of their consumers. That means positive results become easier to find for everyone.
What Are the Benefits of Artificial Intelligence in Banking?
AI-driven predictive banking allows a financial institution to increase their reach and influence by adding more virtual agents to work on their behalf. There are more tools available to create a better mix of solutions in real-time with this technology.
This trend might one day begin to eliminate some of the traditional commodities in the financial sector, like loans or checking accounts. It also offers the potential to create a universal cash management solution that makes wealth more effective at any income level.
Knowledge is no longer defined as a review of useful information that someone put together. It is now part of an overarching process that seeks to create a proactive improvement in a person’s decision-making process.
Results Are Already Positive with AI-Driven Predictive Banking
JPMorgan Chase is an early adopter of artificial intelligence and the benefits it can provide to consumers. The company recently introduced what they call a Contract Intelligent Platform, or “CoIN.”
This platform works to analyze legal documents. It extracts the critical data points or clauses in each file so that a manual review of them can occur afterward.
Before the implementation of the CoIN system, it took the company 360,000 hours to review 12,000 commercial credit transactions. Once the artificial intelligence technology became part of the process, the same number of records is reviewable in seconds.
What could JPMorgan Chase do with 360,000 new hours of productivity from their staff?
Wells Fargo implemented an AI-driven predictive banking team in February 2019 to look at this technology for its benefit. The group is currently nestled under the umbrella of innovation, virtual solutions, and payments. Their first project was to pilot a chatbot through Facebook that could help to provide account information to users or help people to reset forgotten passwords.
There is no doubt about the positive influences of artificial intelligence on the banking industry. The companies that become early adopters of the AI-driven approach will have the first chances to establish successful, innovative partnerships between humans and machines. Customers will benefit because they will gain access to meaningful solutions for their wealth.
When consumers make money, then so does the financial industry. That’s what the ultimate promise of artificial intelligence happens to be today.
Disclaimer: The author of this text, Robin Trehan, has an Undergraduate degree in economics, Masters in international business and finance and MBA in electronic business. Trehan is Senior VP at Deltec International www.deltecbank.com. The views, thoughts, and opinions expressed in this text are solely the views of the author, and not necessarily reflecting the views of Deltec International Group, its subsidiaries and/or employees.
About Deltec Bank
Headquartered in The Bahamas, Deltec is an independent financial services group that delivers bespoke solutions to meet clients’ unique needs. The Deltec group of companies includes Deltec Bank & Trust Limited, Deltec Fund Services Limited, and Deltec Investment Advisers Limited, Deltec Securities Ltd. and Long Cay Captive Management.