Financial Institutions Take Note — AI Will Soon Transform Your Cybersecurity, Compliance and Customer Service AI presents significant potential for community banks, with 68% already exploring or implementing AI solutions to improve customer experience and streamline operations, according to Accenture Consulting. These enhancements can lead to 20% higher customer satisfaction and up to 30% in cost reductions. From automating resume parsing to helping customers perform more complex self-service tasks, AI is transforming banking operations, especially with tools like Microsoft 365 Copilot. Let’s explore how AI is reshaping the efficiency and customer service of community banks. How Banks Are Making Use of AI According to The State of AI in Financial Services 2023, here are some top AI-use cases reported by Nvidia: • Natural language processing for chatbots. • Recommender systems for customer interactions. • Portfolio optimization. • Fraud detection in payments. • Algorithmic trading. • Marketing optimization for content creation. • Document management. • Compliance support. The Upside Potential for AI Is Big for Banks AI is increasingly making its way into core banking software, cloud productivity tools and new AI-powered solutions. Soon, AI will be ingrained in our daily workflows. But are banks seeing the benefits? The answer appears to be yes. Here’s what banking customers are already experiencing with AI, according to Nvidia: • More accurate fraud detection and security alerts. • Fraud alerts using multiple security mechanisms. • Data-driven insights for business needs. • Significant cost savings by cutting time and labor in processes. • 24/7 customer service availability through portals and chatbots. • AI-generated assistance for onboarding and account queries. The future of AI in banking is here, and it’s easy to jump on board. Before you do, ensure you fully understand what could go wrong with your chosen tools. Before You Start with AI, Consider the Risks to Your Bank While AI offers tremendous benefits, banks must remain cautious about the risks, especially since few laws directly govern AI in banking. AI must comply with existing data protection laws, like GDPR (General Data Protection Regulation) in the EU and CCPA (California Consumer Privacy Act) in the U.S. Risks to consider include: • AI tools collecting and storing protected data outside your control. • Algorithm bias that could unfairly exclude job or loan applicants. • Loss of customer trust from data breaches associated with AI. • Operational disruptions. AI for Banks What to Expect and How to Prepare By Cal Roberson, Director of Strategic Partnerships, Financial Institution Division, Integris ENDORSED VENDOR 33
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