|Banking will be transformed by means of artificial intelligence and Big data to serve their clients more than they can do / Photo by: AgnosticPreachersKid via Wikimedia Commons|
Big data and artificial intelligence are set to make significant changes to customers' banking experience in a time in which banking and financial services can't afford to fall behind.
Smart AI technology can help banks in mitigating unprecedented charge, which leads to an overdraft in automated saving plans, Inside Big Data reports. It adds that with steps like forwarded cash flow predictions, aggregated account data, and data-driven intelligent awareness, banks would be able to hold transfers to automated savings accounts until money has been injected.
Such steps can also notify customers of potential overdraft, recommend a top-up, and take on other procedures to prevent penalties.
AI and big data also help banks in advising their customers regarding retirement, investment, saving opportunities, and keeping track of expenses. More banks are beginning to actively use AI and big data to help customers in tracking their expenditures and even provide them with personalized reports.
These technologies are also used to give advice on how customers can save more, pay bills on time, avoid penalties, and have better financial management.
Moreover, banks are now adopting technologies that assess a customer's spending habits and draw insights based on their banking behavior. Inside Big Data says such capabilities can also support banks in providing personalized recommendations into saving opportunities that customers may have missed, as well as loyalty points they have yet to redeem, better interest rate account they can shift into, and other money-saving methods.
AI and machine learning technology offer additional benefits, such as the detection of frauds and mitigation of cybersecurity risks. These technological advancements are made to obtain a better understanding of what is an unusual transaction for certain customers. Its accurate and intuitive understanding also prevents the bank from inconveniencing the customer by flagging too many charges that are not even fraudulent.
As technology moves forward and everything is going digital, it's crucial that banks should go hi-tech as well using technologies like AI, big data, and predictive analysis to enhance and secure their customers' banking experience.