The Expanding Role of Artificial Intelligence in Banking

Banks have been historically associated with human advisors, clerks, and an array of staff, but the march of technology, particularly artificial intelligence (AI), is propelling the industry into a new era. From giving automated advice to detecting fraud, AI's scope in banking is expanding beyond the rudimentary customer service bots.

AI's Growing Influence in the Banking Sector

AI's latest leap in banking is the emergent 'generative' AI, capable of crafting text, images, or videos, potentially revolutionizing customer interaction. Banks are leveraging AI to enhance productivity and offer personalized, secure banking experiences. Far from just aiding human staff, AI is streamlining complex processes like mortgage application assessments and legal document reviews for loans, making operations faster and more efficient.

AI in Mortgage Processing and Financial Wellness

Financial giants are piloting AI systems for early-stage mortgage application processing to provide swift feedback and analyse various compliance factors. Soon, AI might also become a digital financial coach, offering personalized money management advice. Customer financial well-being is a focal point, as showcased by systems like ANZ's AI, which anticipates financial distress early by analyzing transaction data.

Fighting Scams with Advanced AI

In the face of increasing online fraud, AI is the frontline defense for banks. Scam detection systems analyse variables in transactions to identify potential fraud, with the AI learning and adapting to new scam patterns continuously. It's a battle of wits where AI is prevalently used to protect customers' hard-earned money.

The Impact on Employment

Notwithstanding the efficiencies gained through AI, there is concern about how these advancements will influence employment within the sector. The Finance Sector Union expresses apprehension about job cuts and the demand for transparency regarding AI's application in banking. In contrast, bank executives suggest, while AI may assume simple tasks, new roles are anticipated to emerge in tandem with AI's integration.

banking, AI, technology