Page 46 - Banking Finance January 2022

ARTICLE

and simultaneously identifying the anti-moneylending
model on a real-time basis.
Y Machine learning and cognition serve to identify
suspicious data patterns and convince banks if the
original source of money is legal or illegal. AI can also
study the behaviour of past customers to predict future
needs, which can help banks to market and sell
successfully.

4. Wealth management and portfolio
management
Y AI-based systems help potential investors by analyzing
their salary and spending policies. They can also assess
market trends and choose the right funds for their
banks through automation, but the intelligent
portfolio by determining the appropriate amount to
transformation of the entire system until they can defeat
invest each month to realize their dreams. All this can
the newly emerging fintech players. This has prompted
be done without visiting branches or hiring experts. In
many banks to use software robotics to simplify the back-
the world of banking telephone at your fingertips,
end process and achieve a better functional design. SBI
mutual funds and fixed deposits can be created at home
plans to set up an Innovation Center link to explore RPA,
and money can be returned when needed.
which will help in making internal banking processes
Y AI can be leveraged to instantly inform customers of more efficient.
any suspicious transactions beyond their usual patterns.
Y Focus on better operations, effective cost management 5. Intelligent Character Recognition System
vs. profitability: Y This system has been identified by some foreign banks,
Y Banks must make a profit in order to survive, and today, used to collect important information from old loan
banks face considerable pressure on their margins. applications, to lease contracts and to feed a central
Regulators and their continued focus on transparency database that is accessible to everyone. This helps with
make many businesses profitable. expensive and error-prone banking services, such as
managing claims, drastically reducing the time spent
Y AI technologies enable banks to bring more efficiency
reading or recording client information.
to their operations and manage costs. Robotic Process
Automation (RPA) and Intelligent Process Automation Y For example, JPMorgan Chase's COIN documents and
(IPA) are very helpful here. Applying financial contracts extracts data from 12,000 documents (which require
is only a matter of seconds, thanks to AI. They also help more than 360,000 hours of work without automation)
to manage contracts and act as brokers, taking on in just seconds.
common tasks simultaneously, thereby improving
productivity and efficiency. All this will lead to increased 6. Lending:
revenues, reduced costs and an increase in profits. Y The idea of credit to a minus percentage of the Indian
Robotic automation of processes can rebuild the population. To date, applying for a loan is considered
financial sector and make it more humane and smarter. an awkward process. Analyzing the creditworthiness of
Approximately 80% of the repetitive work processes help a person due to a lack of credit history is annoying for
the authorities to devote their time to value-added banks.
activities that require high levels of human intervention Y The use of Big Data and Machine Learning to analyze
such as automation and product marketing. customer's cost patterns and behavioral data over

Y What we need now is not just the empowerment of the 10,000+ data points helps the bank to have insight into

46 | 2022 | JANUARY | BANKING FINANCE