There’s no doubt that Artificial Intelligence (AI) impacts most industries. AI can accomplish more with less, from manufacturing to telecommunications to food service. At the same time, it’s a powerful tool for companies to meet or exceed consumer expectations.
You may not realize that domestic and offshore banks also employ AI in several ways. Two goals drive the desire to make the most of this resource: lower costs while enhancing profits and providing a level of convenience
that motivates customer loyalty.
Here are some of the ways that AI is changing the way that many banks do business.
Streamlining Front Office Protocols
In the financial world, the front office refers to conversational banking. That happens when you step into a bank to complete some transaction. You may have to wait in line if others are already there, or you may have to wait while a bank officer is located
to help with the transaction. While getting help is great, it can also be frustrating when you have to wait more than a short time.
AI can reduce the wait time by streamlining the processes and protocols used for front-office banking. While you may need to speak with an officer, much of the necessary data can be gathered while you wait. The outcome is that the time passes faster, and the
officer already has information on hand that’s relevant to your transaction. Even if you’re using video conferencing to reach out to an officer at an offshore bank, this process can save a lot of time and ensure things are handled more quickly.
Tools For Personal Financial Management
You may have noticed that there are plenty of tools to use when you log into your bank account using secure login credentials. Some involve analyzing the transactions you’ve made in current and past periods. At a glance, you can get an idea of how much you’re
spending on eating out, grocery store runs, or a number of other expenditures.
That’s because AI drives the software that classifies your transactions into specific groups. Along with giving you an overview of where you’re spending money, AI can suggest changes to your account that will allow you to earn more interest or put you in a
better financial decision.
Accepting and Evaluating Credit, Mortgage, and Loan Applications
Remember when applying for a credit card or a loan was tedious? You had to fill out a mountain of paperwork, submit it to the right bank personnel, and then wait for a response. If something wasn’t clear, that meant phone calls and more waiting. Things could
get even more complicated when the loan was for something more involved, such as purchasing a property.
AI has helped make the overall process easier. Assuming you’re seeking a credit card or a mortgage through the domestic or offshore bank where you have accounts, much of the data needed is already compiled as you begin the application process. The fact that
AI gathers data from multiple sources to check your current credit standing is a big plus.
The result is more reliable credit scores that speed up the process. In some instances, you may be approved for that credit card immediately or only have to wait a day or two before the mortgage application is approved.
More Efficient Fraud Detection
Online banking is great, but it does come with risks. Hackers actively try to break into domestic and international bank accounts. Often, the purpose is to make purchases with the account balances or transfer the funds out of the accounts, leaving unsuspecting
consumers with nothing.
AI is used in many institutions to identify and prevent fraudulent usage from taking place. If an attempted transaction indicates you’re at a hotel in a nation you’ve never visited, AI may flag it, put a hold on the transaction, and take further measures to
determine if it’s you.
Along with protecting your domestic and offshore accounts from threats that you may never know are present, fraud protection is one of the greatest things about how AI is helping to keep banking safe.
Enhanced Data Security
Speaking of fraud attempts, did you know that AI has taken voice recognition to a whole new level? If there are attempts to use your accounts for transactions over the phone or even in person, this efficient tool can compare your voice pattern with the person
attempting to make the transaction.
Think of what that can mean if a bank account is breached, or you lose a physical card without knowing it. Thanks to this level of security, you can ensure that nothing is done with your account that you do not specifically authorize.
Faster and Easier Access to Account Management
There are times when you need access to your accounts immediately. AI drives the process. You can use secure login credentials to get into those accounts, typically by using additional identifiers other than your password. AI makes the process fast, so it doesn’t
take long to establish that you are really you.
Consider how this would work if you needed to access the account on a device other than your typically recognized method. AI would note that this was unusual activity, then take steps to ensure that you were the one trying to gain access to the account. Automated
messages sent to you by text, email, or voice allow you to confirm your identity. Once that’s done, you can manage your account data in an intended manner.
Remain in Compliance with Banking Regulations
For the bank, AI provides a means of fully complying with current banking regulations. Those regulations are stringent, and with good reason. They are also subject to change. Being current on pending changes allows the bank to adjust the operation and remain
Thanks to AI, it’s easier to be aware of anything that may be out of line with current regulations. That can save the bank considerably since compliance can translate into substantial fines. Since many of those regulations impact consumer security, you indirectly
benefit from AI’s efforts to keep the bank in compliance.
Your bank is likely employing AI behind the scenes in ways you never anticipated. Some of the resources you take for granted when managing domestic and offshore accounts are why you can manage transactions so easily.
AI Continues to Evolve
Technology is always evolving, and so goes AI. Be on the lookout for more enhancements. As AI continues to develop, you can bet that financial institutions will be ready to make the most of the newest innovations.
Luigi Wewege is the President of Caye International Bank, headquartered in Belize, Central America. Outside of the bank, he serves as an Instructor at the FinTech School in California, which provides
online training courses on the latest technological and innovation developments within the Financial Services industry and is on the board of CI Associates a Chilean based offshore wealth management firm. Luigi is also the published author of
The Digital Banking Revolution, now in its third edition.