Artificial intelligence has emerged as a significant game changer in nearly every industry, including banking. The incorporation of AI into banking apps and services has made the industry more customer-centric and technologically relevant. AI-based solutions can help banks cut expenses by enhancing efficiency and drawing conclusions based on data that a human agent cannot comprehend. Furthermore, intelligent algorithms can detect anomalies and fake information in a couple of seconds. In this article, we’ll look at some of the most important AI applications in finance and banking, as well as how this technology is reshaping customer experience. 

How Integrating AI Into Mobile Banking Elevates Customer Experience?

While banks do not operate 24 hours a day, customers expect to be able to conduct their banking transactions at any time – Here comes the need for mobile banking. It enables customers to avail banking services at any time. Moreover, AI has improved the efficiency of mobile banking and has assisted banks in providing a better experience to their customers by utilizing machine learning and predictive technology. Here’s a detailed breakdown of the various ways in which AI is transforming consumer experience:

Personalized reminders

With AI integrated mobile banking apps, customers can set different types of personalized reminders for bill payment, low balance, suspicious activity and many more. This not only ensures better user experience, but also protects from fraudulent transactions. Personalized alerts regarding the available bank balance also assist the consumer in keeping track of their expenditure and regulating it as needed.

Financial planning

The majority of bank customers have difficulty with financial planning. People of all ages struggle while managing their funds. However, mobile banking apps integrated with AI assist consumers with financial planning and wealth management needs. These apps analyze the users financial behavior over time and then make personalized recommendations about how to spend their money most effectively. AI-powered smartphone apps enable bank customers to become more financially savvy by assisting them in achieving higher returns on their investments.

Also Read: Artificial Intelligence In Mobile App Development | ThinkPalm

Automated transactions

Integrating artificial intelligence into mobile banking apps assures users that their bills will never go unpaid. Mobile apps support automated payments that enable users to schedule payments for all of their regular expenses. The funds will be automatically transmitted to the vendor on the fixed dates, eliminating users’ concerns about timely bill payment.

Transaction data enrichment (TDE)

TDE is an essential component of financial management for both banks and customers. It uses machine learning and artificial intelligence to interpret incomprehensible sequences of letters representing transactions and merchants and translates them to comprehensible text that displays each merchant’s name, addresses and cities. It displays the location of the individual merchant rather than the central corporate headquarters. This way of converting difficult-to-understand data into easy-to-read information assists both banks and customers in understanding where and with whom the cardholders have made transactions. Since customers know exactly what they have purchased and from where, it minimizes both customer inquiries and chargebacks. Most importantly, TDE enables bank officials in budgeting, assessing spending habits, credit scoring, and forecasting future earning and spending problems of cardholders and making better recommendations for their financial wellness.

Also Read: 7 Ways Mobile App Paves The Way For Enterprise Digital Transformation (thinkpalm.com)

Risk management

Bankers encounter many challenges when it comes to credit extension. A bank may face issues if it allocates loans to insolvent consumers. Default occurs when a borrower loses a steady income. In order to avert this amount of default, banks make use of AI-powered systems that can better assess consumer credit histories. Financial transactions can be tracked and analyzed via mobile banking apps. This assists banks in anticipating hazards associated with loan issuance, such as client insolvency or the possibility of fraud. Moreover, it enables banks to allocate loans to potential customers without much complications.

Chatbots 

Banking is an industry that necessitates safe and secure technology to prevent fraud and other misfortunes while also offering a positive customer experience. Integrating chatbots into mobile banking can assist with both. Deploying chatbots into banking websites can greet the customers and respond to their queries instantly. Also, chatbots assist customers in submitting and processing various forms of payments in a timely manner. Bots can proactively notify customers of upcoming payments and amounts, as well as confirm receipt of payments. AI powered chatbot can authenticate users in order to safely access their account information and do the necessary verification from the bank system. Hence, users do not have to enter information each time for making transactions and can save time. Moreover, chatbots provide 24/7 support to customers enabling them to avail assisted banking services at any time from anywhere.

Also Read: How Can Artificial Intelligence (AI) Transform The Current Challenges Every HR Faces – (thinkpalm.com)

Conclusion

Artificial intelligence has the ability to transform traditional banking operations and increase customer satisfaction. In today’s fast moving world, banks are continually upgrading and strengthening their digital assets because they know customers demand the ease and convenience of online banking. At ThinkPalm, we can help you create an online banking application that is tailored to your needs. We have the necessary resources and experience to create highly efficient banking mobile apps for Android and iOS platforms. Speak with our experts to know how your bank can benefit from cost and time savings and boost customer experience by turning digital.

Author Bio

Manju is an enthusiastic content writer working at ThinkPalm. She has a keen interest in writing about the latest advancements in technology. Apart from writing, she is a classical dancer, embraces fashion attires, and loves spending time with her pets.