Artificial intelligence (AI) in the fintech industry is not about replacing live employees with robots. Instead, it's about using automation to carry out basic or routine tasks in order to let employees handle more complex issues. It's a way of giving employees more responsibility and the chance to work closer with the customers who truly need live help. AI is also ensuring that each transaction is accurate and it's making online transactions safer by automating regulatory compliance. When basic customer tasks are automated, such as simplistic banking transactions like depositing money, checking account balances or cashing checks, employees can have the time and mental energy to handle high-value tasks and troubleshoot difficult problems.
Allowing customers to check their account balances, review their financial transaction and pay their bills from the convenience of their homes, or offices. A decade later, and as smartphones became the channel of choice for many on the go customers, Mobile banking was born to fulfill the needs of those who need access anytime and anywhere, and although many banks started by just offering mobile-friendly versions of their internet banking channels, the overwhelming customer demand for more functionalities, forced banks to give mobile banking its own identity as a separate channel, developing powerful mobile banking apps with unique functions. Causing mobile banking to become the most frequently used banking channel in many countries around the world. Fast forward to about three years ago, where development in technology and innovation accessible to the banking industry, allowed banks to consolidate their Internet and Mobile banking services into a single platform that allowed a unified user experience across different channels, whether it was online banking, Mobile banking (Mobile Banking apps, Virtual Wallets, etc ..), and even through ATM Services, offering customers a unified, more personalized and on the go experience. Advances in Machine Learning and artificial intelligence (AI), have allowed more and more banking organizations to leverage artificial intelligence to launch chatbot solutions, reducing costs and serving increasingly tech-savvy consumers, and to facilitate two-way communication, and in many instances, replacing channels such as phone, email or text, allowing customers to ask questions or request services using natural language.
Regulatory compliance is timeconsuming and expensive for both financial institutions and regulators. The volume of information that parties must monitor and evaluate is enormous. The rules are often complex and difficult to understand and apply. And much of the process remains highly labor-intensive, when even the most automated solutions are often incompatible with other systems and, even today, most still depend heavily on manual inputs. As a result, costs have risen significantly for financial institutions in recent years.
Regulatory compliance has always been and will always be one of the top priorities and concerns of every financial institution (FI). Regulatory reforms following the global financial crisis of 2008 compelled FIs to make substantial investments in risk and compliance – both in terms of technology and headcount – to prevent and remediate regulatory issues. Despite their best efforts, FIs often find themselves falling short of regulatory obligations owing to highly manual processes and silo-based solutions which hinder transparency, efficiency and availability of fast and meaningful data. Non-compliance means being slapped with hefty penalties not to mention consequent reputational damage. Compliance processes today need to be backed up like never before by automation, artificial intelligence and big data – to name a few crucial technologies – to keep up with increasing regulation and stricter enforcement.