Page 39 - Banking Finance February 2024

ARTICLE
A R T IC L E

TRANSFORMING

BANKING

THROUGH

ARTIFICIAL

INTELLIGENCE

T he transformation of banking through artificial 2. Fraud Detection and Security:
intelligence (AI) has been a significant and
Anomaly Detection: AI algorithms can identify unusual
ongoing trend, with numerous implications for
patterns in transactions, helping to detect and prevent
customer experience, operational efficiency, risk
management, and more. Here are several ways in which AI fraudulent activities in real-time.
Biometric Authentication: AI-driven biometric
is shaping the future of banking:
technologies, such as facial recognition and fingerprint
scanning, enhance security by providing secure and
1. Customer Service and Experience: convenient methods for customer authentication.
Chatbots and Virtual Assistants: AI-powered chatbots
and virtual assistants enable banks to provide instant, 3. Risk Management:
24/7 customer support, answering queries, and guiding
Credit Scoring: AI models analyze vast amounts of data
users through various processes.
to assess creditworthiness more accurately, providing
Personalized Recommendations: AI algorithms better insights for loan approvals and risk assessment.
analyze customer data to offer personalized product
recommendations, helping customers make informed Predictive Analytics: AI helps banks forecast market
trends, assess potential risks, and make data-driven
decisions based on their financial behavior.
decisions to optimize their portfolios.
About the author
4. Operational Efficiency:
Vijay Deep Shukla Robotic Process Automation (RPA): AI-powered bots
Chief Manager automate routine and time-consuming tasks, reducing
Union Bank of India
errors and improving overall operational efficiency.

34 | 2024 | FEBRUARY | BANKING FINANCE