The use of Artificial Intelligence in the Banking Industry

Abstract

The banking industry is rapidly adopting artificial intelligence (AI)-enabled technologies to improve efficiency, reduce costs, and enhance customer experience. The paper utilizes case studies and data from various research papers to analyze the use of AI in different areas of the banking industry. The paper highlights that AI-enabled technologies can be applied in various areas of the banking industry, with significant potential for improving decision making, reducing the risk of fraud, and enhancing customer experience. The study also provides examples of AI implementations in various banking domains, such as risk assessment, credit approval process, investment/portfolio management, and others. The use of AI in fraud detection, personalized financial advisory services, and automated customer support is discussed in detail, including examples from major financial institutions. Additionally, the paper discusses how AI can be used in claims management, wealth management, and loan and credit management. Several research studies have been reviewed that propose AI-based credit scoring models and loan underwriting systems to enhance the accuracy and efficiency of loan management processes. Overall, this paper provides a comprehensive survey of the opportunities and challenges associated with the use of AI in the banking industry, highlighting the potential for AI to transform the way banks operate and serve their customers.