5 key areas in banking where AI is helping to redefine the financial industry

If you’re reading this, I assume you’re already in the Finance industry and are wondering how artificial intelligence (AI) can help transform your business. If that’s the case, read on!

Artificial Intelligence (AI) is having a massive impact on all areas of business, from HR process to marketing to sales to procurement to operations, enabling business owners and leaders to get more Done in less time with fewer people. As a result, IT leaders in financial services and markets are evaluating how AI can be used in areas associated with banking, but also how it can be integrated throughout an organization to unlock the potential of people and processes.

In this blog post, we will cover some of the key areas where AI is helping to redefine the financial industry.

Hiring And Firing Bankers

In the financial services industry, experienced bankers with proven track records are in great demand. However, finding experienced bankers who are also willing to change jobs is difficult. As a result, banking organizations are looking for ways to reduce cost by automating the process of hiring and firing. Some of the areas that AI is being used to improve the hiring process for bankers include:

Solving the Sourcing Process- A recent study found that 46 percent of companies struggle with finding and attracting the right candidates for their open positions. AI programs can search & match online resumes to find the best candidates for each job based on specific traits
Generative technology can help automate the initial stages of the hiring process by analyzing resumes and cover letters to match candidates with specific job requirements

Enhancing Employee Experience- Recruiter chatbots can provide real-time answers to candidate questions, asking predefined questions and assessing their responses, offer quick feedback and suggest next steps. They can provide links to promising job descriptions, clarify company hours and location, and schedule interviews.

Screening Boosts- AI tools can store essential data on all applicants, saving time and effort when you’re ready to reach out to them again. Companies that use AI tools have reduced their cost per screening by 75 percent.

Tools like SmartRecruiters and Jobvit these technologies make it easier for banking organizations to find the best person for the job based on the responses to certain questions. The fewer steps required in the hiring process, the less time there is for errors to be made. In the end, less people are needed to do the same amount of work, which reduces costs. What’s not to love?

Sales

Thanks to AI and the cloud, businesses have always had access to a vast amount of information about their customers. However, up until now, only businesses with large sales forces were able to effectively use this information to their advantage. The rise of the digital bank and the increase in the importance of data-driven marketing mean that smaller businesses also have access to consumer data and can use AI to gain valuable insights into their customers’ buying behavior.

To become more efficient salespersons, many financial services companies are turning to AI to gain market insights, analyze sales data, and predict consumer behavior, companies like Hootsuite and Radium, which provide marketing tools and services, businesses can gain valuable insights into how customers interact with their online content, what content works best, and whether or not a certain marketing channel is effective

Generative technology can help in creating personalized communication for customer retention efforts and identifying upselling opportunities based on customer usage patterns and preferences. AI can handle administrative tasks like data entry, scheduling follow-ups, and sending reminders, allowing salespeople to focus on building relationships.

AI is also being used to gather and analyze sales data, providing businesses with the information they need to make more informed decisions about their operations. For example, AI can be used to spot any discrepancies in the data collected, as well as identify any patterns or tendencies within the information. Armed with this knowledge, businesses can make better strategic decisions about their future marketing and sales campaigns.

Mobile Banking

In the last couple of years, we have all heard of AI is eating the world,” and while that may be somewhat exaggerated, it’s true that more and more industries are adopting AI. In banking, it can also be applied to processes that haven’t changed much over the years but nevertheless require some manual intervention by a human operator.

In mobile banking, two major types of AI are Machine Learning (ML) and Computer Vision. ML models make decisions based on training data, like identifying creditworthiness from payment history. Computer Vision recognizes images, often used for security codes like 2FA or fingerprints. Computer Vision enhances efficiency, speed, and accuracy in various systems, making it a valuable tool in mobile banking.

Generative AI can power virtual assistants and chatbots that provide real-time customer support. Customers can use natural language to ask questions, get account information, troubleshoot issues, or even initiate financial transactions. Biometric authentication, a form of generative technology, can enable secure access to mobile banking apps through fingerprint, facial recognition, or voice authentication, enhancing security while making the login process more convenient. Generative AI can assist customers in applying for loans, mortgages, or credit cards by guiding them through the process, answering questions, and providing real-time status updates. AI-powered educational content can be offered within the app to help customers understand financial concepts, make informed decisions, and improve financial literacy.

In mobile banking, where every second counts and where the customer is always “on the go,” AI-based decisions can result in a better customer experience and more efficient operations for financial institutions.

HR Processes

Another area where AI is having a massive impact on the financial industry is HR processes. Thanks to machine learning and big data, companies now have access to a mountain of information about their employees, which makes HR processes much easier, by tools like HireVue and Kronos, which integrate employee data into one place, employers can get an accurate picture of their employees’ strengths and weaknesses, as well as whether or not they’ll be a good fit for the company. This integrated employee data makes it easier for employers to make data-driven decisions, which improves both their productivity and the effectiveness of their HR processes. AI is also being used to make HR processes more efficient by analyzing payroll data and identifying repetitive tasks to be automated.

Generative chatbots on top of that can answer employees’ HR-related queries, such as questions about benefits, policies, and leave requests, providing instant support and reducing the workload on HR personnel. AI can recommend personalized training and development programs based on employees’ skills, performance, and career goals, ensuring continuous skill improvement.

Banks are keen to adopt AI-powered tools to streamline their HR processes. The ability to analyze data and gain insight into key personnel issues will prove to be invaluable to HR leaders, as it will enable them to make more informed decisions about company policy and strategy. An automated and efficient HR process will free up time for senior managers to focus on more pressing matters.

Outsourcing, Contract Negotiation, And BPOs

Banks and other financial institutions often outsource tasks to third parties, be it to handle payroll, process mortgage applications, or provide other functions that banks can’t or won’t do. Thanks to platforms like OutsourceVU, which connects businesses to highly skilled contractors to carry out specific tasks, the process of outsourcing is much easier and more efficient. According to Business Insider, 49% of businesses plan to outsource more tasks to freelancers and contractors using AI in 2022.

AI will play a key role in helping businesses find the right talent for the job, monitor work progress, and even take over certain tasks so that employees can focus on higher-level work. AI will also play a huge role in reducing the amount of time that it takes to find and hire freelance contractors, as it will do the research for you and connect you with the most suitable candidates. This will in turn increase your staff’s productivity, as they won’t have to search for workmates and collaborators as much. This is why so many businesses are turning to AI-driven outsourcing; they know that it will save them both time and money.

Contract negotiation used to be a tedious and lengthy process, but thanks to AI and the cloud, contract templates made the process much easier and more efficient, as businesses can now have all the necessary information upfront and can easily track the details of the contract throughout the process. Similarly, Business Process Outsourcing (BPO) is also much easier thanks to the cloud and AI, as businesses can now engage with multiple providers and compare their offers to choose the one that best suits their needs.

The bottom line is that AI is helping to redefine the financial industry, streamlining processes, reducing redundancies, and enabling businesses of all sizes to become more efficient and effective. What’s not to like?

Wrapping- up

Banks are vying to lead the AI revolution, and for good reason. The banking sector has been trying for many years to change from a people-centric to a customer-centric organization. This change has compelled banks to adopt a more all-encompassing strategy in order to satisfy the needs and expectations of its clients.

With their focus now on the customer, banks must begin thinking about how to serve them better. Customers now expect a bank to be there for them whenever they need it — which entails being accessible around-the-clock, every day of the week. Banks can now accomplish this using AI.

As we can see, due to the numerous advantages that this technology provides, banking and AI go hand in hand. Forbes reports that 65% of senior finance management expects AI and machine learning to improve banking. Thus, in order to provide consumers with innovative experiences and top-notch services, all banking institutions must invest in AI technologies.

As automation and AI drive more and more value out of the workplace, employees will have enough opportunity to thrive and feel empowered.

At Fluid AI, we stand at the forefront of this AI revolution, helping organizations kickstart their AI journey. If you’re searching for AI development services for your business you can always schedule a strategy session with one of our Fluid AI Founder Experts. They can walk you through the stages to establish and implement a long-term AI in banking strategy.