In the banking sector, the use of AI now concentrates primarily on:
- ‘Chat bots’, voice banking, robo-advice and other automated services for customers.
- The screening of prospective customers in relation to credit and other financial product applications, including by way of know your customer checks.
- Identifying new financial products to advertise to existing customers.
- Identifying suspect transactions for risk monitoring, reporting and compliance purposes, including to meet anti-money laundering and financial crime obligations. In this space, a number of global institutions have been developing algorithms to assess past transactions that may predict unusual or suspect activity in the future.
- Screening prospective candidates for their suitability for new jobs as part of the interview process.
While providing the opportunity for greater efficiency and revenue, better qualified personnel and improved risk management and compliance, there are also important ethical and security risks that banks need to properly manage if they elect to use AI. Click here to read more.