If you are looking for an answer to the question What is Artificial Intelligence? and you only have a minute, then here's the definition the Association for the Advancement of Artificial Intelligence offers on its home page: "the scientific understanding of the mechanisms underlying thought and intelligent behavior and their embodiment in machines."
However, if you are fortunate enough to have more than a minute, then please get ready to embark upon an exciting journey exploring AI (but beware, it could last a lifetime) …
This article in CustomerThink identifies many different solutions where Artificial Intelligence can enhance banking, but makes it appear these solutions are already widely deployed. While each solution is currently in-market by at least one large bank this is a far cry from broadly deployed. Mercator surveyed large banks and found 93 different Artificial Intelligence solutions deployed in 13 different departments. "Machines are getting smarter globally. Thanks to thriving Artificial Intelligence (AI) concept, companies can make their devices more powerful and'intelligent' to serve their customers in a better way. Both B2B and B2C businesses have started adopting this revolutionary technology as per their scale and size. However, the penetration of AI in the banking sector is somewhat limited to date. The distinct datasets and the risk of confidential data are primarily responsible for the sluggishness of AI integration in the banking system.
Artificial Intelligence is a field of computer science that consists of the construction of intelligent machines that are put into operation through computer programs. The purpose of building these gadgets or robots is to replace human intelligence to a certain extent by doing more than one action. AI is a new area under development and has a particular focus on the banking system and the way it operates. Of the most influential sectors are customer service, financial services, and fraud detection. Artificial Intelligence can make banking services automate and thus perform much faster than people.
Machines are getting smarter globally. Thanks to thriving Artificial Intelligence (AI) concept, companies can make their devices more powerful and'intelligent' to serve their customers in a better way. Both B2B and B2C businesses have started adopting this revolutionary technology as per their scale and size. However, the penetration of AI in the banking sector is somewhat limited to date. The distinct datasets and the risk of confidential data are primarily responsible for the sluggishness of AI integration in the banking system.
In an effort to create better customer experiences, NAB and Microsoft have designed an automatic teller machine (ATM) using cloud and artificial intelligence (AI) technology for facial recognition. Currently in proof of concept phase, the cloud-based application, developed using Azure Cognitive Services, has been designed to improve the customer experience by removing the need for physical cards or devices to access cash from ATMs. Customers who opt into the service would be able to withdraw cash from an ATM using facial recognition and a PIN. The concept has been designed purely to test the customer experience of using such technology. The ATM system, using Azure Cognitive Services, does not store images, only the biometric data, and the data is held securely on Microsoft's trusted cloud platform to be erased following the experiment.
Combining biometric identification with artificial intelligence (AI) enables banks to take a new approach to verifying the digital identity of their prospects and customers. Biometrics is the process by which a person's unique physical and personal traits are detected and recorded by an electronic device or system as a means of confirm identity. Biometric identifiers are unique to individuals, so they are more reliable in confirming identity than token and knowledge-based methods, such as identity cards and passwords. Biometric identifiers are often categorized as physiological identifiers that are related to a person's physicality and include fingerprint recognition, hand geometry, odor/scent, iris scans, DNA, palmprint, and facial recognition. But how do you ensure the effectiveness of identifying a customer when they are not physically in the presence of the bank employee?
Machine Learning (ML) is currently the verge that has the biggest impact on the banking industry. Take a look at how 5 largest banks of the US are using ML in their workflows. The Federal Reserve of the US has recently published an official report on the largest banks in the US. It lists quite a ton of banks, yet we are not surprised by the fact 5 largest and most influential banks of the US are investing heavily into imbuing their services with Artificial Intelligence (AI) and ML. Just to illustrate the efficiency of this approach -- these banks have closed more than 400 of local branches in 2016 and still met their margin thresholds, as mobile banking combined with the ML helped them meet and exceed their customer's expectations.
Brett King, co-founder and CEO of Moven, explores how artificial intelligence (AI), embedded tech and experience design are reframing banking. As technology has dominated our lives over the last decade, banking has transformed what customers expect in an everyday banking experience. Today, a digital presence is simply table stakes – it has become imperative in how banks engage and more importantly, retain their customers. Despite this progress, less than 5% of banks in markets like the US and UK allow a customer to open an account through a mobile phone. So where are banks today, and what do they need to do to compete with the challenger banks whose offerings are 100% digital?
Customers of Alabama's Bank Independent can now access their banking services via an AI-driven virtual assistant based on Amazon's Alexa platform. That includes checking their account balances, performing transactions, and receiving information about loans, bank hours, and more; and the system can even perform biometric authentication using voice recognition. The technology arrives via Enacomm's VPA, or "Virtual Personal Assistant" solution. It's a little late in arriving; plans for the deployment were first announced a year ago, and at the time Enacomm said it expected to complete it "in early 2018". But better late than never: A statement announcing the implementation suggested that customers appreciate the new technology, with Bank Independent VP Kelly Burdette noting that after its launch the company heard from an 89-year-old customer with macular degeneration who said the Alexa chatbot "makes his banking and his life easier."
As the world grows increasingly digital, providing the'humanized engagement' becomes ever more important. Digital consumers demand more today than speed and simplicity. They want to feel good about their interactions with technology, and this requires some element of the personal touch. Subscribe to The Financial Brand via email for FREE!Despite all of the talk about improving the customer experience, most financial institutions have focused on using digital technologies to improve their bottom line. With regard to the consumer, the focus has almost entirely been on improving speed and simplicity.