Email: contactus@precisa.in
Phone number: +91 98450 76647
  • Solutions
    • DSA Service
    • Forensic Investigation
    • Bank Statement Analysis
    • GSTR Analysis
    • Credit Report Analysis
    • Account Aggregator Integration
    • Anti-Money Laundering (AML) Analysis
  • APIs
  • Clients
  • About
  • Blog
  • Pricing
  • Sign In
Try Now
Fintech

AI in Banking: Why Financial Institutions are Betting Big on Artificial Intelligence?

November 18, 2023 precisateam No comments yet
AI in Banking

AI in banking is redefining the financial sector and changing how banks function and interact with customers. Financial institutions are assessing options and adopting groundbreaking technology to meet the ever-evolving expectations of tech-savvy customers and meet emerging challenges like security, compliance and changing marking dynamics.

The convergence of banking, telecom, retail and information technology has expanded the transfer of information over virtual networks, making them vulnerable to online threats and frauds. Artificial Intelligence (AI), a fast-emerging technology, can help banks deal with these challenges, improve their decision-making, and manage risks better.

Studies reveal banks expect to save $447 billion by 2023 through AI applications.

Additionally, 85% of business executives viewed AI as essential for providing businesses with a sustainable competitive advantage.

This blog post focuses on how AI in banking will shape the future of the financial sector.

Emerging Use of AI in Banking

The data-driven nature of the banking industry provides the perfect space for artificial intelligence to grow and thrive. The banking industry has witnessed a remarkable transformation by leveraging Artificial Intelligence. Banks and financial institutions (FIs) are recognising AI’s potential and leveraging it in multiple arenas.

Now, let us look at the critical benefits of AI in banking.

Improved Customer Experience

Artificial intelligence improves banks’ understanding of customer behaviour based on past interactions and helps them customise financial products by adding personalised features.

Using AI in banking helps empower customers through chatbots, which can answer basic user questions 24/7, enabling customer access to help even outside of regular office hours. Chatbots also offer valuable input to customers to help them solve their problems on their own.

As per a survey, 68% of the customers found the speed of chatbots appealing.

Automating tasks like account opening and loan processing reduces the turnaround time and enhances customer satisfaction and loyalty.

Forecasting Future Trends 

Banks can benefit from predictive analysis in fields like forecasting market trends, risk management and optimising investment decisions.

AI in banking helps predict future scenarios and outcomes based on analysis of past behaviour. Predictive analytics involves analysing data using statistical models and machine learning algorithms to identify patterns and predict future events.

Banks can identify probable fraud, detect patterns that point towards money laundering and make customer recommendations. AI can also help recognise dubious data patterns from enormous volumes of data with the power of Machine Learning for effective fraud management.

Based on past studies and analysis, artificial intelligence can help FIs up-sell and cross-sell products and explore untapped sales opportunities, thereby deepening and widening customer relations.

Reduce Costs

Artificial intelligence can help FIs reduce costs through automation, reducing errors and powering customer service. Automating repetitive, high-volume, and time-consuming work processes through software bots using an emerging technology called RPA (Robotic Process Automation) reduces the time and labour required to carry out these processes.

Automation also helps decrease human errors, which can have substantial financial implications. AI in banking enables the automation of several costly, information-intensive, and error-prone banking services.

AI algorithms help accurately and swiftly process services at each step and help FIs avoid human errors in routine tasks when processing a high volume of customer interactions.

AI-powered chatbots can offer customer services 24/7 and reduce costs associated with hiring, training and managing shifts of customer support staff.

Regulatory Compliance

The financial sector is highly regulated, and FIs have to adhere to the policies and guidelines laid down by the governments and various statutory bodies. FIs have internal compliance teams to ensure they function according to the specified guidelines and rules.

For example, using the Natural Language Processing (NLP) branch of AI offers many benefits in compliance. It can help in due diligence screening for Anti Money Laundering by analysing, identifying, and managing high volumes of data.

The compliance regulations change from time to time based on changing government regulations. Updating the processes and workflows and imparting the required training across departments is challenging and time-consuming.

Precisa’s Bank Financial Statement Analyser helps in regulatory compliance by pointing out infractions, anomalies, or attempted financial statement manipulation.

Risk Management

Financial institutions face credit and market risks, which can have significant implications. AI algorithms can help identify potential risks associated with specific borrowers or industries and help banks make better-informed decisions while minimising risks.

As per Juniper Research, the expenditure on financial fraud detection platforms that utilise AI is projected to surpass $10 billion globally by 2027.

AI technologies can analyse large volumes of data and identify irregularities that could lead to fraudulent activities.

External global factors like natural disasters, currency fluctuations, or political unrest impact the banking and financial industries. AI can help FIs through analytics that offer a clear picture of what is to come and help them stay prepared through timely decisions.

AI is also instrumental in identifying risky applicants by evaluating the probability of a borrower defaulting to pay their dues.

The Takeaway

AI in banking has been a disruptive force like so many emerging technologies. Artificial intelligence harnesses the power of advanced data analytics to improve customer services, decrease costs, manage risks better, reduce fraudulent transactions and improve compliance.

Precisa’s AI-driven Bank Statement Analyser assesses the customer’s financial health by analysing indicators such as income stability, cash flow, debt-to-income ratio and savings patterns. It also enables fraud detection by identifying suspicious transactions, including money laundering, fraudulent activities and potential risks.

Additionally, it seamlessly integrates with account aggregator platforms and allows banks to access consolidated financial data from multiple sources.

Sign up today for a free demo.

  • AI in Fintech

Post navigation

Previous
Next

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Search

Categories

  • Bank Statement Analysis (122)
  • Credit Appraisal (35)
  • Digital Lending (120)
  • Fintech (81)
  • NBFC Software (3)
  • Uncategorized (1)
  • Understanding Precisa (17)

Recent posts

  • The͏ C͏re͏dit Bur͏e͏͏a͏u͏ & Bank Stateme͏͏nt Co͏͏mbi͏nation
    Credit Bureau & Bank Stateme͏͏nt: Ho͏w the Duo Reduc͏es Lending ͏͏R͏isk
  • RBI's Decision to Exclude Fintech Loans
    Understanding RBI’s Decision to Exclude Fintech-Sourced Loans from Default Coverage
  • Extract Hidden Insights from Consumer Credit Bureau Reports
    Beyond CIBIL Scores: Pulling Hidden Insights from Consumer Credit Bureau Report

Tags

account aggreagtor AI in Fintech API To Get Bank Transactions Automated Bank Statement Analysis Bank Bank Accounts Bank Financial Statement Analysis Bank Statement Analysis Bank Statement Analysis API Bank Statement Analysis Tools bnpl Case Study cash flow analysis co-lending Credit Appraisal Credit Appraisal Software Tools credit bureau Data Quality and Integrity digital lending due Due Diligence early embedded finance Financial Data Analysis Tools financial inclusion Financial Industry financial security financial startups Financial Statement Analysis Software fintech fintech companies fintech startups Fraud Investigation GST GSTR gstr analyzer Lenders loan management system Loan Rates money laundering MSME nbfc open banking precisa rbi

Continue reading

Extract Hidden Insights from Consumer Credit Bureau Reports
Credit Appraisal

Beyond CIBIL Scores: Pulling Hidden Insights from Consumer Credit Bureau Report

June 23, 2025 precisateam No comments yet

Traditional credit scoring, led by CIBIL and other bureaus, has been the backbone of lending decisions for many decades. However, with the undeserved and new-to-credit segments’ increasing need (and demand) for loans and the microfinance delinquency rate moving up to 4.3% in 2024, lenders are realising that single scores only tell half the story about […]

Pillars of Forensic Audit in Financial Services
Fintech

Understanding the 8 Pillars of Effective Forensic Audit in Financial Services

April 21, 2025 precisateam No comments yet

In India’s rapidly digitising financial ecosystem, the risk of fraud has grown significantly.  A PWC report pointed out that nearly 59% of Indian organisations had been defrauded over the previous 24 months. For financial institutions, early fraud identification is not merely a regulatory requirement but a business imperative.  This is where forensic audits become critical.  […]

Effective-Money-Trail-Detection-with-Advanced-Technologies
Digital Lending

Effective Money Trail Detection with Advanced Technologies: Blockchain, AI, ML and More

January 27, 2025 precisateam No comments yet

Technology has taken over the financial ecosystem. Banks, non-banking financial companies (NBFCs), and other financial institutes are upgrading their existing infrastructure by deploying advanced technologies to combat suspicious financial activities, prevent crime, and ensure regulatory compliance. The Finance Ministry revealed that the Financial Intelligence Unit–India has identified an undisclosed income of around a whopping ₹11,000 […]

Mumbai

403, Mayuresh Chambers, 4th Floor, Sector 11, CBD Belapur, Navi Mumbai, Maharashtra 400614

https://g.co/kgs/buJcESj
Pune

Rachana Park, 3rd Floor,Atreya Society,
Off. Senapati Bapat Marg,Wadarvadi, Pune,
Maharashtra – 411016

Links
  • Cancellation Policy
  • Terms Of Use
  • Privacy Policy
Subscribe to our newsletter

Sign up for our weekly newsletter to get the latest news, updates & amazing offers delivered directly in your inbox.




    © All Rights Reserved • Precisa • MADE WITH ❤️ & ⚡ IN INDIA.