Artificial Intelligence in the banking industry

If our era is the next Industrial Revolution, as many claim, AI is surely one of its driving forces. Fei-Fei Li

Hello everyone, hope all are in good spirits and excellent health. Here is the follow-up topic that I promised you guys a while back. In the earlier article, I had drawn up a general framework of A.I and how it works; now I’m detailing its impact in the banking industry.

click here for that post

By the way, a great many thanks to the banker friend of mine who sent me the material many months ago, and I am using it now(better late than never right!). So, chugging on

The banking sector is one of the first and foremost teams in the race to adopt the A.I drive. They are judiciously exploring how A.I can help them transform the customer experience, shorten processing times and solve customer queries in no time at all. A. I has many technologies like Deep Learning, Machine Learning, Neuro-Linguistic Programming, Natural Language Generation and analyze data to make informed decisions in real-time.

The primary applications of the A.I surge were the introduction of chatbots, personalized services, and self-service banking portals. It is more evolved where A.I is used for tightening security measures against any threats like hacking or intercepting sensitive financial information and more.

Chatbots come under the Machine learning category where the bot will continuously learn to reason and deduce solutions that are acceptable to the customer.  They are on a cycle of continuous improvement to understand the customer’s queries and match them with the perfect solution. 

A.I is not only for banking; also for the stock market professionals who use the Algorithmic Trading technique to carry out more efficient trading.  We all know that an algorithm is a set of rules that a computer follows to solve a problem. In the same manner, the A.I algorithm helps the traders to implement more effective trading methods for gaining profits.  A.I use a large amount of data regarding the stocks and its factors to provide useful data in a single glance to its users.  It saves time and hours and hours of discussion on who is right(go figure)

When looking from employment terms, A.I is all set to open its floodgates to many such brilliant people who have a natural hack for crunching numbers (I love to crunch them literally ), love statistics and computer programming. 

As they say “a coin has two sides” so does A.I, it generates openings for employment and is wiping out jobs too. Due to the implications of machine learning and deep learning, it can successfully surmise and deduce like a human minus the emotional part, so why does a bank need ten workers to handle a system when one single bot will do the job?  For the employees who are in backend support A.I will be the nightmare.

On the other hand, the A.I field has a seen a rise in the hiring process, because they need someone to maintain the machine. No one will go to a bot directly ask the numbers, because they wouldn’t understand its language (or as I say Bhashan Smajhe me Nahi aayega yaar). So you need a person who speaks the same language.

So, now is a great time to be a Data scientist, A.I engineer or any other professional who can take advantage of the A.I boom. A.I is now becoming a mainstream change in many industries including healthcare, education, and others. However, according to experts A.I is still in its nascent stage, and a lot more needs to be done to explore its potential.

To sum it up, Artificial Intelligence can give great potential to the humankind. It has to be implemented in a way that it complements our lives and does not control it (we have seen great many Hollywood movies, so I urge the experts to take precautions).

Hope you all loved the post.  As usual, Namaste, Au Revoir, Sayonara and a simple Vanakkam to my readers out there where ever you are and whoever you are.

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