How Artificial Intelligence is transforming the banking and insurance sector.
Guest Blogger: Aruna Pattam, Head – AI & Data Science, Asia Pacific & Middle East, HCL Technologies
Artificial Intelligence (AI) is one technology that’s going to change the way banking and insurance will operate.
Consumers are increasingly turning to digital-only banks, and even the traditional banks have started to offer more online services. It has been predicted that the potential cost savings for banks and insurance firms through AI applications is estimated to be around $450 million.
AI can help streamline their processes, make smarter decisions, and manage customer service requests with fewer resources. AI also can play a major role in risk management by preventing fraud and fighting money laundering in real-time. There are many other different ways that AI can be used to improve the banking and insurance industry.
In this blog post, we will explore some common applications of AI in Banking and Insurance.
Topics covered:
Key challenges faced by banking and insurance industry
How AI can help
Key challenges faced by banking and insurance industry:
Banks and insurance firms are experiencing a dramatic evolution in their business ecosystems triggered by technological innovations and changing consumer behaviours. Changing lifestyles, online shopping, big data, technology advancements have made interactions across organizations and individuals more real time.
Below are some of the key challenges that are faced by the firms today:
#1: Customer expectations: Customer’s expectations are on the rise as more and more people access banking through their smartphones, tablets, laptops etc.
#2: Digitisation: Digitisation is disrupting the way traditional institutions operate their business and how the services are provided.
#3: Competition: Emergence of FinTechs and other big technology companies entering this market has made it more competitive.
#4: Regulation: Regulatory requirements require the firms to constantly change their ways of operations to be compliant.
#5: To Stay relevant: Leading firms has started making AI technologies as integral part of their business. This requires others to be also up-to-date with the emerging technologies to be competitive and stay relevant.
How AI can help:
By using machine learning and deep learning techniques, we can automate tasks and predict outcomes thus reducing costs and improving service. The possible fields of application of…