Utilization of artificial intelligence in the banking sector: a systematic literature review Journal of Financial Services Marketing

For example, leading disruptor Apple — which recently made its first foray into the financial services industry with the launch of the Apple Card — capitalizes on the innovative design on its devices. No one knows what the future of banking automation holds, but we can make some general guesses. For example, AI, natural language processing (NLP), automation banking industry and machine learning have become increasingly popular in the banking and financial industries. In the future, these technologies may offer customers more personalized service without the need for a human. Banks, lenders, and other financial institutions may collaborate with different industries to expand the scope of their products and services.

RPA, along with AI, has drastically improved the speed of work and adherence to regulations and working procedures. The heavy-manual work has simplified leading to the massively successful digital transformation of the banks. Over a period of time, it has become a powerful tool to transform the banking industry for both customers as well as the employees. Today, RPA is used to perform front-end, back-end, and internal level banking activities.

How AI Is Powering Modern Banking Transformation

Since 2016, there has been a surge in research linking the themes of Processes and Customers. More recently, since 2017, papers combining Customers with Strategy have become more frequent. Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee (“DTTL”), its network of member firms, and their related entities. In the United States, Deloitte refers to one or more of the US member firms of DTTL, their related entities that operate using the “Deloitte” name in the United States and their respective affiliates. Certain services may not be available to attest clients under the rules and regulations of public accounting. Ultimately, the lessons for the banking industry maybe to anticipate and proactively shape how automation will spur innovation, increase demand, and alter the competitive dynamics, beyond operational transformation.

In this report, Business Insider Intelligence identifies the most meaningful AI and machine learning applications across banks’ front and middle offices. We also discuss the winning AI strategies used by fintechs and legacy financial institutions so far, as well as provide recommendations for how banks can best approach an AI-enabled digital transformation. The future of financial services is about offering real-time resolution to customer needs, redefining banking workplaces, and re-energizing customer experiences. End-to-end service automation connects people and processes, leading to on-demand, dynamic integration.

Customer experience

However, many corporate executives still lack knowledge regarding the strategic utilization of AI in their organizations. Exhibit 3 illustrates how such a bank could engage a retail customer throughout the day. Exhibit 4 shows an example of the banking experience of a small-business owner or the treasurer of a medium-size enterprise. Being an automation solution provider for multiple industries, AutomationEdge has scaled multiple banking and financial services providers in accelerating their business process efficiency and workplace experience. For example- one of our clients HDFC bank had been facing huge challenges in process inconsistency and a high rate of errors that were leading to lower revenue and higher operational costs.

Siloed working teams and “waterfall” implementation processes invariably lead to delays, cost overruns, and suboptimal performance. Additionally, organizations lack a test-and-learn mindset and robust feedback loops that promote rapid experimentation and iterative improvement. At this stage, banking institutions aim to convert website traffic to credit solution applicants. The integration of robo-advisors will help customers select a credit solution that they can best qualify for, and which meets their banking needs. The availability of a robo-advisor can enhance the service offering, as it can help customers with the appropriate solution after gathering basic personal financial data and validating it instantly with credit reporting agencies.