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In a previous couple of articles, we have already seen how artificial intelligence is useful in the field of commercial banking. We have also seen the various advantages and disadvantages of deploying artificial intelligence in commercial banking lending. However, it needs to be understood that lending is not the only department in commercial banking that will be impacted by the use of artificial intelligence. The impact of artificial intelligence is expected to be wide and is likely to impact several other departments as well.
In this article, we will have a look at areas where artificial intelligence is used in various departments within a commercial bank.
Commercial banks have studied the various patterns which exist in the field of commercial banking. Based on these patterns, they have used artificial intelligence to create software that can assist the customer and provide the same level of customer service as a human. The idea is to automate basic customer service tasks and deploy the services of humans only for the more difficult ones. Hence, over the next few years, artificial intelligence is likely to find large-scale applications in this department of commercial banks.
Over the years, technology has developed further and even more complex processes can now be automated. Most commercial banks have annual targets to increase the level of automation in their processes. This is the reason that commercial banks will heavily deploy artificial intelligence and related technologies in this domain.
In the future, commercial banks are likely to spend a lot of money in order to incorporate artificial intelligence into cross-selling and automate the process. The bank’s system will study customer patterns and based on their behavior will select the bank’s products that can add more value to the customers. This system will be linked to the lending system as well and will make pre-approved offers to the customer which they will be able to avail at the click of a button. These features have already been introduced in personal banking. However, their large-scale deployment in commercial banking has not yet taken place.
Commercial banks are likely to invest heavily in artificial intelligence-based technology so that they are able to provide better security to their customers.
For instance, commercial banks can detect transactions that are initiated from computers located in different locations as compared to the ones which are normally used by the company. Also, commercial banks can use artificial intelligence to find better ways to confirm the identity of the customer before transactions are processed.
Corporations generally share payments and receipts data with their banks. Hence, banks are aware of the cash flow situation of a corporation.
Banks that use artificial intelligence can compare this cash flow situation to similar cash flow situations faced by other customers in the past and the financial vulnerabilities that they were exposed to. This helps them provide meaningful advice to their clients. This advisory service could prove to be a new source of revenue for commercial banks.
The bottom line is that the field of artificial intelligence is going to have a deep impact on the commercial banking industry. Its impact will not be limited to a particular vertical or department of commercial banks. Instead, it is likely to transform the way in which commercial banking functions as a whole.
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