There are new advancements being made with artificial intelligence every day. We’re becoming ever closer to seeing artificial intelligence being worked in too many aspects of our everyday life, from simple things like ordering food to more complicated tasks like scheduling appointments, accessing our medical records and even banking. While some may fear the way this form of technology is seemingly ‘taking over’ it is important to realize that artificial intelligence looks a lot different than what we may picture in our heads. It’s not merely a robot that has been created to accomplish human-like tasks. In many cases, it is an automated system that we may utilize on a regular basis without even knowing it. One of the many areas affected by artificial intelligence is banking. We can already see how artificial intelligence is affecting customer service, fraud prevention, and personalization.
Have you ever called your banking institutions hotline and spoken with a representative only to later realize the voice you are speaking with is automated? Automated voices are replacing human customer service representatives that would ordinarily assist you with troubleshooting issues and changing the details of your account. The advantage of this is that a greater number of people can receive help at the same time, hopefully decreasing the amount of time you sit on hold waiting for someone to help you.
The disadvantage could also be looked at as the number of jobs potentially lost because we’re seeing such a decrease in the amount of customer service representatives needed.
Fraud prevention and security is a major aspect of banking, especially in this day and age when so much of banking is done online where personal details can be hacked. One of the best ways to combat the risk of having your personal information compromised is to use as many forms of identity validation as possible. What this means is that instead of using just one form of login such as a username and password, you would use multiple forms to ensure security. Modern technology in the form of artificial intelligence has allowed for security measures such as biometric data, such as fingerprint recognition to increase security and prevent fraud.
Apple’s newest iPhone utilizes facial recognition not only to get into a device but also to make purchases through Apple Pay. This service is powered by artificial intelligence and shows just how far this form of technology has come in recent years.
There’s no doubt that banks have a plethora of customer information. That information can now be used to make a customer’s banking experience more personalized. Because of modern technology, your banking can be completely customized to fit your needs. But logging into your online banking profile, you can easily see all your past purchases, detailed reports about how your money is being spent, and in some cases even view a 360-degree customer view that allows a customer to visualize the status of their finances in a new way.
To conclude, the effect of artificial intelligence upon banking has many advantages that can change the landscape of the way we know banking forever. Perhaps most importantly, additional security precautions can allow for a decreased chance of fraud and creating overall efficiencies.
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.