by  Kelly Dempski

Make Banking Systems and Processes Smarter With AI

clock-icon-white  5 min read

AI has been a hot topic of discussion for a while now, but many financial institutions are still wondering where it will fit in their business model. The answer is: everywhere. From process optimization to fraud prevention, personalized marketing, and more, AI is making an impact. It brings a new level of intelligence to traditional systems, humanizing them by comprehending customer needs and determining the best ways of serving them.

By automating tasks such as document verification, risk assessment, and credit evaluations, AI analyzes large amounts of data quickly and accurately. This not only speeds up onboarding and origination processes but also improves accuracy and reduces the risk of human error. Additionally, AI aids in discerning the authenticity of a customer's claims, differentiating between genuine customers and potential fraudsters based on their behavior.

AI is already being used across the sector to make products and processes smarter. It plays an essential role in everything from targeted marketing to origination and ongoing security checks and gives banks a competitive advantage.

Banking Systems Smarter With AI

Develop targeted marketing strategies

AI is valuable to banks throughout the entire customer lifecycle, beginning with attracting customers. Using algorithms and data analysis powered by AI, financial institutions can optimize their marketing strategy to better appeal to customers at a time when demand for origination, refinancing, and consolidation is expected to be on the rise.

Recommender systems powered by AI and machine learning can offer significant benefits to banks by personalizing marketing campaigns and enhancing customer experience. The algorithms behind the systems can analyze users' transaction histories, spending patterns, and financial preferences. By understanding individual customer behavior, recommendation algorithms can suggest personalized financial products, such as credit cards, savings accounts, or investment opportunities. This helps customers discover relevant services and allows banks to tailor their offerings to meet the specific needs and preferences of each user.

Enhance KYC processes

As part of the KYC process, AI verifies customer identity by analyzing customer data and identifying fraudulent documents or suspicious activity. AI can help banks make more informed decisions when assessing a customer's creditworthiness or determining the risk level associated with a loan application. Additionally, AI's capacity to continuously monitor customers allows it to promptly flag changes or anomalies indicative of potential risks.

AI-powered ID Match solutions streamline the identity verification process. By utilizing document scanning, facial recognition, and liveness detection techniques, AI can accurately verify identities using various forms of ID documents. This provides customers with an effortless experience while ensuring accurate and secure identity verification for the banks.

Fund payments efficiently and test systems against fraud

AI's ability to analyze data and make quick decisions significantly reduces processing times for funding requests, thereby improving banks' cash flow.

Traditionally, funding requests often undergo a series of manual reviews and verifications, leading to delays. AI automates much of this workflow by quickly assessing the information provided in funding requests, verifying relevant details, and making quick decisions based on predefined criteria. This not only accelerates the funding approval process but also ensures that legitimate requests are promptly addressed.

AI also plays a pivotal role in safeguarding systems against fraudulent activities, particularly for complex products involving back-office processes. As financial institutions continue to adopt advanced technologies, the need for robust defense increases. AI, with its ability to process vast amounts of data at high speeds and detect patterns, emerges as a powerful tool in fortifying the security infrastructure of banks.

AI constantly evolves by learning from new data. This adaptability enables it to stay ahead of evolving fraudulent tactics, offering a dynamic defense mechanism for banks. Through continuous analysis of transactional and behavioral data, AI systems can identify anomalies and potential red flags that might indicate fraudulent activity. This proactive approach allows banks to respond swiftly, mitigating potential risks and protecting both the institution and its customers.

Real-time data analysis powered by AI is crucial in identifying subtle patterns or anomalies that might go unnoticed through manual reviews. By leveraging machine learning algorithms, AI systems become increasingly accurate over time and ensure that banks' processes are continually updated and secured against evolving fraudulent tactics.

Establish AI partnerships

AI is more than the latest buzzword or industry fad; it's a game-changer, bolstering your efficiency and security. To fully harness its benefits, you need to embrace partnerships and foster a culture of continuous learning and adaptation.

SoftServe helps financial service providers leverage existing AI technologies and identify emergent AI trends relevant to the banking industry. AI can make existing products smarter, but they also require the transmission of more data, and this may require shifting to new vendors and systems. We can help navigate these shifts, integrate data, and maximize the benefits of new technologies.

Let’s talk about how SoftServe helps implement AI technologies that provide the best ROI by delivering end-to-end solutions.

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