As Data Grows, What Could The Future Of AI Look Like In Banking?

As Data Grows, What Could The Future Of AI Look Like In Banking?As Data Grows, What Could The Future Of AI Look Like In Banking?

Alex Kreger, financial UX Strategist, CEO Founder of UX Design Agency, maximizing business success with the Financial UX Design methodology.

Everyone agrees that AI in banking will have a drastic impact on the industry in the next five years. This is because of the limitation of human abilities. If we look a bit further, we can see the disruptive perspective of AI that will go well beyond banking, completely transforming digital customer experience, and even providing “superpowers” to mankind.

Yes, it hasn’t happened yet, but we should start thinking already today about how it could affect our businesses tomorrow. The main question is not “what if,” but how exactly it will affect us and how we can prepare.

As of now, AI in banking is discussed primarily in connection with specific features, but this is only the basic level of AI’s potential. Soon, I believe we will see AI’s impact on a much larger scale in such banking experience fields as:

• Personalized offers: Using AI for more accurate customer credit scoring based not only on the bank’s profile and credit history but also on social profiles and offline activity will provide customized proposals for each customer. It also reduces risks for the banks themselves. This could help to quickly and easily match users’ needs with the right product at exactly the right time when a person needs it.

• Investment: To take human irrationality out of investment decisions, AI will analyze multiple business and market factors to forecast business success.

• Security: AI will move most of the verification technicality to the background. This will bring more trust to digital banking and move it closer to people without the need for confirming identification at every step.

• Support: AI bots will provide instant solutions for frustrated users that are not generalized and useless but fitted to the customer’s specific needs.

• Alternative processing: AI will help enable banking operations using alternative interfaces, such as voice, gestures, neuro, VR and AR. This will allow the implementation of banking solutions into different experiences of every human being connected to the digital space.

AI might be the hottest tech topic at the moment, but I believe conversational banking, drones or chatbots aren’t even close to the true potential of AI. We should not associate AI only with these topics, as it would be like buying the most expensive iPhone to use as a nutcracker.

Big Data Getting Even Bigger.

To realize the full potential of AI, we have to explore it from a broader perspective. Do you know how much data we generate at the moment? In 2017, IBM reported that 90% of the data in the world had been created in the past two years. Every day, we produce approximately 2.5 quintillion bytes of information through our smartphones, computers and other gadgets.

This could be 750 times all the content of the Library of Congress, every day. And, in 2030, this volume will be much higher thanks to IoT.

Soon, sensors will be everywhere, generating even more data about everything, ranging from weather conditions, buildings and vehicles to, of course, us — humans.

At the moment, analysts use advanced tools to generate, collect and exchange data. But, due to the rapidly increasing volume, it is still difficult to properly analyze and gain valuable insights from the data. You might say that there’s nothing new about the use of AI in the analysis of big data, but what if it was a tool available for everyone?

The Holy Grail Of Unanswered Questions.

There are so many scientific, intellectual and overall existential questions we ask daily: how to cure deadly illnesses, what’s the meaning of life, how to create the most successful business and so on. Now, what if AI was the holy grail carrying all the answers?

What if every single one of us could use AI to predict the consequences of each of our decisions, providing on-the-go push notifications about how to act? These directions would be based on thousands of data parameters collected from billions of people and analyzed by AI with the goal of finding significant connections and cross-influence in your specific case.

From a financial perspective, an AI advisor could forecast outcomes of our decisions even before we have made them, thus saving us from drastic failures, irrational behavior and reduced self-esteem. AI could identify hidden connections that have a critical effect on our well-being, taking into account all the huge data collected in our profile by banks and the IoT comparing to other users.

Imagine that your personal AI advisor recommends taking specific online courses because it has detected that it brings revolutionary ideas to similar users and could grow your wealth as a result. Or, if you do not change your diet and exercise regimen, you have a 90% chance of having a specific heart condition in just two years’ time. Or, your social networks could recommend five people who could become your closest friends, based on a thorough analysis of interests, mutual friends, activities, habits, posts, etc.

Deep Thought, the supercomputer that is programmed to solve the “ultimate question of life, the universe and everything” in The Hitchhiker’s Guide To The Galaxy , could become a toy available to everyone thanks to advanced AI, based on big data. This kind of advanced AI will be free of human brain restrictions and will be able to find correlations of data types we would never even think of analyzing. This will provide revolutionary insights in biology, technology, finance, physics and our personal lives.

The incredible array of data that is currently useless will become a valuable source of insights for each of us and, of course, for entrepreneurship. This is a way to realize not only the potential of every person but of all mankind. What do you think? How could such AI advisors impact our daily lives and business?

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