Retail banks are increasingly incorporating AI into their services, with 70% of surveyed institutions already using it. Key applications include payment processing, document handling, and customer service. While AI holds transformative potential, concerns about security risks related to technology dependence loom large for the industry.
As technology continues to evolve, banks are increasingly embracing artificial intelligence (AI) to refine their operations. Retail banks, which cater to everyday customers and small businesses, are no longer hesitating. A recent study from Lucerne University of Applied Sciences and Arts shows that while AI’s usage is still in its early stages, its benefits in areas like data analysis and risk management are becoming apparent.
In a survey of 45 banking institutions, a notable 70% reported they are now actively utilizing AI, mostly in internal operations. Specifically, 23% use it for payment transactions, another 23% for processing documents, and 20% for data analysis. These developments mark a significant shift in how banks manage their workflow, driving efficiencies across the board.
Though the technology is predominantly harnessed for backend processes, it’s finding a place in customer interactions as well. For instance, 13% of banks have integrated AI into their call centers, while 10% employ it for basic customer service, advising on accounts and financing. However, the study’s authors point out that human agents remain essential, especially when dealing with sensitive matters. “At the moment, however, humans are still irreplaceable, especially when it comes to sensitive topics,” they said, highlighting the delicate balance between technology and personal interaction.
The potential of AI to reshape the banking landscape is significant. It promises improved efficiency and quality across various processes—including credit analyses and customer service enhancements. Moreover, the precise evaluation of customer data could pave the way for hyper-personalized services, fundamentally altering the way banks interact with clients.
But it’s not just about benefits. Increased reliance on AI comes with its own set of challenges. The greater dependence on technology and the corporations behind it heightens risks related to security vulnerabilities. The study advises banks to bolster their IT infrastructures and to maintain vigilance regarding software development trends, as these elements will be crucial for safeguarding their operations moving forward.
The study underscores a pivotal moment in banking where AI is steadily gaining traction, showing promise for improved efficiency and personalized services. However, the growth spurt in AI applications also raises concerns regarding security and dependency on tech providers. Balancing the innovation with the inherent risks will be essential for the future of banking.
Original Source: www.swissinfo.ch