To conclude the paper, the author presents illustrations of current research directions. While tech giants tend to hog the limelight on the cutting-edge of technology, AI in banking and other financial sectors is showing signs of interest and adoption even among the stodgy banking incumbents. Copyright 2020 AZ Big Media. INTRODUCTION Next generation digital technologies like machine learning (ML) and artificial intelligence (AI) are creating a … Today, AI is all-pervasive. According to a report by the National Business Research Institute, more than 32 percent of financial institutions are using artificial intelligence through voice recognition and predictive analysis. Through its investment and acquisitions wing, Citi Ventures, the bank boasts a global network of tech companies that participate in its six Citi Global Innovation Labs . The scope of this report is limited to our research ﬁndings as of May 10th 2018. Rapid advances in artificial intelligence (AI) and automation technologies have the potential to significantly disrupt labor markets. The intersection of banking and technology, such as artificial intelligence, most prominently appears in fraud management and customer service. Our approach seeks to quantify the total economic impact of artificial intelligence on the economies of 7 countries in the Middle East (Egypt, UAE, Saudi Arabia, and four countries have been grouped: Bahrain, Kuwait, Oman and Qatar) via productivity gains and consumption side impacts … So, it is certain that artificial intelligence will continue to play a prominent role in the, digital transformation revolution carried out by the banking industry. Artificial Intelligence in Finance provides a platform to discuss the significant impact that financial data science innovations, such as big data analytics, artificial intelligence and blockchains have on financial processes and services, leading to data driven, technologically enabled financial innovations (fintechs, in short). therefore, researchers are making dedicated efforts to explore new opportunities. This paper explores the phenomena of the emergence of the use of artificial intelligence in teaching and learning in higher education. The banking industry is yet to realize the full potential of AI in banking, therefore, researchers are making dedicated efforts to explore new opportunities. However, not all banks have a research and development function to help them leverage this technology. When it comes to India, evidence of banking activities such as loaning was found in the Vedic Period. There is a better scope of achieving regulations compliance and standardization. To achieve these goals, they are aggressively implementing AI tools. Schelter said Alliance Bank of Arizona’s customers are going to benefit from this shift to the new technology. Continuous technological disruptions have changed the way the banking industry works drastically. The top global industries including banking and finance are moving towards AI for its numerous benefits. The paper seeks to explore the areas where the AI is being used in the Banking Sector and its implication in the top banks in India. processing, banking, ﬁnance, ﬁntech, startups, wallets, and payments. By deploying an AI solution, we can free up those bankers to focus on the caller and their needs and let AI systems surface all the right questions to ask and content to review.”. Artificial Intelligence is a way to reduce the human effort on tedious tasks and eliminate errors. One line is based on the biological thinking where the Artificial Intelligence is based on the idea of human thinking and that system should work like how humans think. Empirically, AI has a significant positive impact on European banks’ return on assets (ROA). It is easy to detect fraud and prevent any kind of disastrous activity. Our sector-wide research suggests that natural language processing (NLP) is one of the more common AI approaches in banking AI use-cases today. It is worth mentioning that the massive, Adoption of artificial intelligence was undoubtedly a drastic move in the industry which was resisted by many. While artificial intelligence will improve customer service, it will also lead to “bill paying with a few clicks” and “automated investing” becoming the new normal. At this time in the history of banking in India, the adoption of technology started, and the results are quite evident. However, the modern banking in India took birth in the last decade of the 18. century with the establishment of the first few banks, namely Bank of Hindustan, General Bank of India, and Bank of Calcutta. Despite this thinking, smaller banks are adopting AI significantly slower than their larger counterparts, according to the Mercator Advisory Group. Artificial Intelligence (AI) is fast developing technology for across the world. AI technologies will clearly have a huge impact on the financial services sector. “If a customer has nine or 10 transactions in New York and then one in Texas, something is going to look suspicious and the capacity of technology to draw us to that suspicious activity is significant and enabled by artificial intelligence,” Zirkle said. Now, you can transfer, withdraw, manage your account, apply for loans, make payments, and create a new account, in just a few clicks. Wells Fargo’s future includes artificial intelligence being a part of every aspect of the business and changing the way they work because Monroe believes that “AI is just one component – alongside in-person and contact center support – of providing great customer service.”, Data and analytics are becoming a key competitive advantage in financial services, which makes it critical to organize now, Monroe said. Banks are exploring and implementing technology in various ways. While the others were liquidated, Bank of Calcutta transformed into the largest and the oldest bank that still exists and is named as the State Bank of India. Adoption of artificial intelligence was undoubtedly a drastic move in the industry which was resisted by many. Artificial Intelligence, as the name suggests, is a concept that helps to perform tasks that are time-consuming for humans, the time they would better spend focusing on the more pressing matters. Organizing and managing records and customer information, a huge volume of transactional data recording,Â Â becomes easy. Artificial Intelligence (AI) is a powerful tool that is already widely deployed in financial services. According to a report by the National Business Research Institute, more than 32 percent of financial institutions are using artificial intelligence through voice recognition and predictive analysis. future impact on the HR workforce. Chuck Monroe, head of Wells Fargo Artificial Intelligence Enterprise Solutions, said the bank is implementing the “massive amounts of data presented during Wells Fargo card transactions, along with historical data, to continuously prioritize potential cases where fraud may be taking place, which helps team members stay focused on the cases with the highest risk.”. Empirically, AI has a significant positive impact on European banks’ return on assets (ROA). Artificial intelligence predictive analytics cut down on those decline rates. The paper specifically describes one such system, ID3, in detail. Opportunities and Challenges from the New Wave of AI ... the research and its implications for regulation have become important topics. What is Fintech? Using artificial intelligence allows banks and the rest of the financial services industry to detect suspicious behaviors that could indicate fraud. “It’s true that advancements in financial technologies are changing banking at nearly every level,” said Jeff Schelter, senior vice president of Alliance Bank of Arizona. This massive technological revolution has transformed conventional banking methods to convenience banking methods. Long gone are the days when standing in a line for a simple query about your banking account was a norm. “(Smaller banks) can look toward opportunities for collaboration with similarly situated entities who share a common interest and goal in advancing AI use,” Zirkle said. Advice will be specific to the individual – based on where they are and what they need to do,” Monroe said. With proactive efforts, we will soon be able to realize the full value of this technological innovation and how it can make digital banking effortlessly efficient. The research of the Artificial Intelligence is based on two main lines. To achieve these goals, they are aggressively implementing AI tools. AI can continue to use human intelligence capabilities without a break, rest, or sleep. The Indian banking sector is exploring the ways by which it can harness the power of AI to improve the processes and enhance the Customer Service in the long run. History of banking began in the early days when merchants roamed around the world trading their goods for the grains from the farmers. No matter how advanced the accounting software may be, they still need to be operated by the accountants. For example, needing a thumbprint or facial recognition to use your electronic wallet on your smartphone. A recent research study shows that artificial intelligence is going to help financial institutions save $1 trillion in project cost savings. Banks will redefine how they work (their processes), what they sell (their products and services) and how they interact with their customers and employees (their user experiences). Artificial intelligence has always been a part of pop culture due to numerous sci-fi movies like Avengers: Age of Ultron, The Terminator, and I, Robot.But, what if artificial intelligence can be used in producing a movie? Customer satisfaction is the highest priority for several banks and AI is helping them achieve the same with better services. AI has impacted every banking “office" — front, middle and back. The initiative begins with automated process in recruitment till performance appraisal of employees. 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